Board of Finance Minutes
December 16, 2014
Present: Regular Members:Andrew Russell, H. P. Garvin, III, Christopher Kerr,
Janet Sturges, David Woolley, Bennett Bernblum
Alternate Members: Robert Jose, Gil Soucie
Absent: Regular Members:
Alternate Members: David Kelsey
Also present: Bonnie A. Reemsnyder, First Selectwoman (ex officio)
Nicole Stajduhar, Finance Director
Mary Jo Nosal, Selectwoman
Guests: Ron Nossek, Cohn Reznick
Jon Brodeur and Joe Benedetto to present Emme HVAC system
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Call to Order
Chairman Andy Russell called the meeting to order at 7:30 p.m. He asked for a motion to add election of Chair to the agenda. The motion was made by Janet Sturges and seconded by David Woolley. Motion passed.
Mr. Russell asked for a motion to move up New Business in the Agenda. The motion was made by Mrs. Sturges and seconded by Mr. Woolley. Motion passed.
Election of Chair
Mr. Russell asked for nominations for Chairman of Board of Finance.
A motion was made by Mr. Woolley, seconded by Mrs. Sturges, to re-elect Mr. Russell as chairman of the Board of Finance. There were no other nominations. Motion passed.
Approval of Minutes
Mrs. Sturges requested the following corrections to the November 18, 2014 Board of Finance Minutes:
Page 2, para. 1: correct “rebursement” to reimbursement.
Page 2, New Business, para. 1: Change “She” to Ms. Frank in last sentence.
Page 3, para. 3: Re-phrase sentence as follows: There was a discussion that the Regional School District #18 is proposing that the OL Rowing Association would potentially be the Managers of the
boathouse, with the exception of during the school rowing season, etc. This proposal would lower costs associated with maintenance and janitorial services.
Page 3, para. 5: Re-phrase as follows: The Committee also recommended an alternate committee which would work with the other Town Committees to investigate other means of waste management and waste reduction, as there is still a need for a small committee to address garbage and recycling issues as they arise. The Committee suggested that there be informational forums periodically for residents, and procedures to develop enforcement systems for violators should be investigated.
Bennett Bernblum requested that alternate members Gil Soucie and David Kelsey be listed as absent from the meeting.
A motion was made by Mrs. Sturges, seconded by Mr. Woolley, to approve the minutes with the noted corrections. Motion passed.
New Business
Town Auditors – Cohn Reznick
Mr. Russell recognized Ron Nossek from the auditing firm of Cohn Reznick. Mr. Nossek distributed highlights of the Town’s draft Audit for FY 2014. He described the strict governmental standards that must be followed for municipal audits, and stated that for FY 2014, no material weaknesses were identified and no instances of noncompliance were noted for the Town. Total revenues for the year were $33,631,039, and total expenditures $32,434,342, leading to a net change in fund balances of $1,299,822. This represents a fund balance percentage of 20.01%.
Questions were asked about fund balance standards and cash investment. Mr. Nossek said that fund balance protocol is shifting, with a new emphasis on revenue and/or monthly expenditures as the basis, rather than a percentage.
He stated that municipalities are extremely restricted with regard to cash investment. For the most part, the Town is limited to investment in government bonds, State Treasury money markets, pension funds, and trusts.
Chairman Russell stated that Town Treasurer John Bysko has been invited to discuss investments with the Board of Finance, and is expected to attend the January meeting.
Final Audits will be provided to the Town along with a letter addressed to Board Chairman Russell.
New Controls for Heating System
First Selectwoman Bonnie Reemsnyder provided an overview of ongoing problems with the current Town Hall HVAC system. She was introduced to the Emme system by the Town Hall’s HVAC maintenance contractor, Joe Benedetto.
Jon Brodeur presented a Power Point about the Emme (“Energy Management Made Easy”) HVAC system. The Emme system would use existing air handlers and duct work in the Town Hall. With
the use of inflatable dampers placed in the duct work, Emme would facilitate heating and cooling controls in every room in the Town Hall. The current system operates in multi-room zones.
The presentation demonstrated some of the efficiencies provided by the Emme system, including an air circulation feature.
Mr. Brodeur estimated annual savings of $3696.96 on energy costs with Emme. An additional savings would be realized if individual space heaters are no longer needed.There are currently 12 heaters in place in the Town Hall.
The cost of installing Emme in all Town Hall spaces on all floors is $55,979.01.
An optional Demand Load Shedding component is also available at an additional cost.
A staged installation of Emme is also feasible at the following costs:
$8,000 for lower level
$3,000 for Meeting Hall
$22,000 each for first and second floor(s)
First Selectwoman Reemsnyder said she has not yet presented the Emme proposal to the Board of Selectmen. The Town’s current maintenance contract with ABS for HVAC software, a $3500 expense, expires on June 30, 2014.
Chairman Russell noted that Regional School District 18 is facing similar HVAC discussions because of heating and cooling issues at the high school.
Gil Soucie advised the Board that his wife is an investor in Emme.
Chairman Russell asked that the Emme system be included in the FY2015 budget for discussion
as a possible capital item.
Financial Reports
Finance Director Nicole Stajduhar reported that the Workers’ Comp Payroll Audit has been completed. She will have a more complete financial report for the Board at the next meeting.
Old Business
2015 Meeting Calendar
A 2015 scheduled was previously distributed.
Chairman Russell noted that meetings can be added to the schedule if necessary. Regular meetings can be added with 30 day notice. Meetings scheduled with less than a 30 day window are considered Special Meetings. Additional agenda items cannot be added to the agenda of a Special Meeting.
A motion was made by Mr. Woolley, seconded by Mr. Bernblum, to adopt the 2015 Meeting Calendar as presented. Motion passed.
Review of Specialist Assignments
Chairman Russell stated that he has added alternate Gil Soucie as a specialist to both the Salaries and the Boards and Commissions Budget sub-committees. Budget review meetings will begin after the holidays.
Other Business
None
Selectman’s Report
First Selectwoman Reemsnyder reported that the Board of Selectmen has added several new members to the Boathouse/Hains Park Improvement Committee. Bob Dunn, co-chair of the Parks & Recreation Commission, was appointed on December 4, and has already attended a Boathouse Committee meeting. Don Bugbee, Director of Parks & Recreation, and Gil Soucie were appointed to the Committee at the December 17 Board of Selectmen meeting. The next Committee meeting is likely to take place in mid to late January.
At their December 17 meeting, the Board of Selectmen decided to name a standing Recycling Committee. A committee charge will be developed and will include review of the current Solid Waste Ordinance, which needs to be updated. The charge will also ask the committee to perform some data collection and make recommendations about education and enforcement.
The First Selectwoman noted that the Town will be faced with making changes to its trash and recycling collection in 4 ½ years, when the current contract expires.
She added that the Recycling Incentive Grant Committee did not recommend proceeding with a State Grant program that required a Pay as you Throw (PAYT) program. Since grant funding will not be available, the new Recycling Committee may submit a budget request for the FY15 budget.
The Beach Stipend Committee presented a final report with recommendations to the Board of Selectmen on December 17. The Selectmen have not yet discussed the recommendations.
First Selectwoman Reemsnyder said that representatives from beach associations attended many of the meetings and were recognized during Public Comment at those meetings. The Stipend Committee minutes were intentionally detailed to memorialize the stipend discussion and decision-making. The Committee has recommended that the Stipend process continue, but in a different way. She will share details of the recommendations at the January Board of Finance meeting.
A Solarize CT meeting took place in Old Lyme on December 4 and was well attended with standing room only in the Meeting Hall. Residents use an online website to request a review of their property. Multiple vendors are participating. Financing options and incentives are available.
A Solarize CT workshop is scheduled to take place in the Middle School Auditorium at 6pm on January 26, before the Annual Town Meeting. There is an April 10 deadline for participation in the program.
The Pension Committee recommended moving the Town Pension Fund to T. Rowe Price and that conversion has now been completed. At their most recent meeting, the Pension Committee voted to adopt a Pension Investment Policy Statement, and recommended that the Board of Selectmen appoint the Town’s Finance Director and the Regional District 18 Business Manager to the Pension Committee. The First Selectwoman noted that Board of Finance alternates Bob Jose and Gil Soucie are members of the Pension Committee.
A Public Information Session on the Route 156 Bikeway project took place on October 22. Completion of the new Sound View parking lot is anticipated by June 2016. A Public Meeting is required when the project reaches 30% completion. That 30% completion meeting is tentatively planned for March 2015.
First Selectwoman Reemsnyder reported that the Board of Selectmen has scheduled special Budget review meetings for the end of January.
She stated that River COG has hired a new Executive Director, Sam Gold, previously associated with a Naugatuck Valley COG.
She and Lyme First Selectman Ralph Eno recently participated in a conference call reporting that the Rogers Lake Weed Study has been substantially completed. A report and recommendations are expected by early February.
The First Selectwoman participated in a CCM sponsored press conference about the DEEP’s proposed new MS4 permitting requirements. The new requirements could cost as much as $500,000 to cover additional staff and equipment needed to handle mandated monthly street
sweeping, municipal leaf collection, snow management regulations, and scheduled catch basin cleanings. The DEEP permitting regulations do not require legislative approval. Municipal leaders will address potential problems during a DEEP hearing process.
Mr. Woolley asked if a Wastewater Management project delay will impact the Route 156/ Bikeway project, particularly the rest room facility planned for the Sound View parking lot area. First Selectwoman Reemsnyder stated that the engineering firm of Woodard & Curran is finalizing a Wastewater draft report for comment by the DEEP. A final report should be ready in January. She said work on the Route 156/Bikeway project will proceed as planned.
Mr. Bernblum asked if preliminary numbers for the Grand List are available yet. First Selectwoman Reemsnyder stated that Vision Appraisal revaluation hearings ended this week, and Assessor Walter Kent anticipates a Grand List decrease of 1 to 2%.
The First Selectwoman wished everyone a happy holiday.
A motion was made by Mrs. Sturges, seconded by Mr. Bernblum to adjourn the meeting at 9:10 p.m. Motion passed.
Catherine Frank
12/17/14
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