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Minutes of the Board of Finance meeting held on Tuesday, July 21, 2015 at 7:30 p.m. at the Old Lyme Memorial Town Hall Meeting Hall.
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Present:~~~~~~~~~~ Regular Members:~ Andrew Russell, Bennett Bernblum,
Christopher Kerr, David Woolley
Alternate Members:~ Robert, Jose, Gil Soucie
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director
Mary Jo Nosal, Selectwoman
Skip Sibley, Selectmen
Absent:~~~~~~~~~~~ Regular Members:~ H. P. Garvin, III, Janet Sturges
~Alternate Members:~~David Kelsey
Guest: Doug Wilkinson, Secretary-Treasurer, WPCA
Tom Risom, OLFD Chief
Tony Vallombroso, OLFD
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~Mr. Russell called the meeting to order at 7:30 p.m. Mr. Russell reported that two regular members are missing this evening, therefore, a motion was made by Mr. Woolley, seconded by Mr. Kerr to have Mr. Soucie and Mr. Jose vote for Mrs. Sturges and Mr. Garvin in their absence. Motion carried.
Approval of the Minutes of May 18, 2015 meeting
The minutes of May 18th were reviewed.
There being no corrections noted, a motion was made by Mr. Soucie, seconded by Mr. Woolley to approve the minutes as written. Mr. Bernblum abstained as he was not present. Motion carried.
Approval of the Minutes of June 16, 2015 meeting
The minutes of June 16th were reviewed. One correction was noted by Mr. Bernblum on page 1, last sentence, add to the existing sentence, “nor that there would be a negative impact on the town’s bond rating.”
There being no further corrections noted, a motion was made by Mr. Woolley, seconded by Mr. Soucie to approve the minutes as modified. Motion carried
Approval of the Minutes of July 06, 2015 special meeting
The minutes of July 6th were reviewed. It was noted that on page 3, 3rd paragraph, the conversation was presented by Mr. Prendergast and not Mr. Wilkinson. On page 4, 1st paragraph, Mr. Soucie stated that the
Board of Finance Meeting July 21, 2015
sentence should read, “Mr. Soucie said that at the last Board of Finance meeting, the town auditor stated that there would be a compliance violation noted in the auditor’s report.”
There being no further corrections noted, a motion was made by Mr. Soucie, seconded by Mr. Jose to approve the minutes as amended.
Review of Monthly Financial Reports
Mrs. Stajduhar outlined the Financial Report Notes for June 2015. Under Revenues, the Property tax, total tax collections were $116,048, 100% of total tax budget accounts collected. Sound View parking brought in $15,691 from the lot and street kiosks. The Beach sticker revenue is at $9,315. EMPG reimbursement of $6,265 was received for Emergency Management purchases in FY 14/15. The Town has hit its budget targets for revenue in total for FY14/15 but there are still accounting adjustments that need to be made at year end.
Expenditures included Special Deductions – Pension – Payment of $41,848 is for the last quarter of FY14/15. Public Works Chip Seal line paid Pasteryak $71,080 for part of Buttonball and Mill Pond Lane.
Capital expenditures included an Emergency Management Communication upgrade, which paid $7,805 to Utility Communications. Public Works Capital paid $148,000 to Pasteryak for paving of Buttonball Road. Other funds included under Miscellaneous, $16,328 in truck repairs funded in part by insurance reimbursements.
Mrs. Stajduhar stated that the Harbor Management Dredging Grant had $200,000 approved at Town Meeting, which is for Surveying, Testing, Sediment Characterization and Dredge Design. As of 06/30/15, $122,717.26 has been expended and the breakdown is as follows: The Day - $350.90; Coastline Consulting & Development - $107,916.16; and DEEP – permits & application fees - $14,450.20, leaving $77,282.74 unexpended. Revenues include CT DEEP (6/25/2012) - $200,000 upfront from the State.
Mrs. Stajduhar outlined the Hains Park Boathouse Project as of 06/30/15. She stated that Revenue towards the project include the $405,000 appropriation that was approved at a previous Town Meeting as well as using STEAP funds in the amount of $478,000. Donations received to date for the docks is $50,800, therefore, total revenue for the project is $933,800 for the project. Espenditures so far include: The Day (933.80), Shoreline Sanitation ($420), BSC ($6,000), Nina Cucio Peck Architect ($33,416.89), Regatta Dock Systems ($39,549.80), Focus Tool & Engineering – Boat racks deposit ($29,325), and Ciel, Inc. ($157.50). Therefore, total expenditures is $109,802 which leaves $823,997.01 unexpended.
Mrs. Stajduhar highlighted the unadjusted WPCA FY14/15 Budget Report as of 06/30/15. The expenditures are as follows: Clerk - $2,400 budgeted, $929.25 actual spent; Supplies - $2,600 budgeted, $1,575.53 actual; Postage - $0 budgeted, $68.39 actual; Legal Counsel - $16,000 budgeted, $21,492 actual; Consultant/Testing - $19,900 budgeted, $34,431.71 actual; Storwater Consultant - $500 budgeted, $0 actual; Waste Water Management (WWM) Consultant - $14,000 budgeted, $5,818.75 actual; WWM Wages - $22,204 budgeted, $1,252.49 actual. Total expenditures budgeted is $81,079 and Actual is $81,011.33. It was noted
Board of Finance Meeting July 21, 2015
that Unpaid Invoices to Attorney Andrew Lord and DPC, total $5,551.06. Mr. Wilkinson is requesting an appropriation of $7,100 so that the WPCA can close out their final year end budget. Mrs. Reemsnyder stated that she had a conversation with the chairman that there was no money available to cover the overexpenditures. She stated that all invoices need to come before the Selectmen for approval prior to spending money in the future. Mrs. Stajduhar stated that she will make adjustments and have a more accurate picture at the August Board of Finance meeting.
New Business
Auditor’s Questionnaire: Mr. Russell read the Auditor’s questionnaire to the Board and asked the questions that are presented within the questionnaire. He stated that he has to share with the board, and sign off on the questionnaire and send it back to the auditor.
To accommodate waiting guests, Mr. Kerr made a motion, seconded by Mr. Woolley to move the OLFD up on the agenda. Motion carried.
OLFD Request: Mr. Risom highlighted the OLFD FY14/15 budget. Operations budget allocated is $228,390 and the operations budget expended is $182,244 or 80%, leaving a balance of $46,145. He is requesting a carryover for upcoming projects, which are various maintenance items that include the following: Replace improper propane piping at Cross Lane Station ($2,000), repair and reconfigure duty truck ($8,900), procure and install Information Technology (IT) equipment ($9,800), administrative area upgrade at Lyme Street Fire Station ($10,000), totaling $31,000. Additional projects include: Enclose former workshop to create workout room at Cross Lane ($6,500), replace heating system at Cross Lane Station ($25,000), install central A/C at Cross Lane Station ($20,000), replace
furnace at Lyme Street Station ($25,000), resume addition to Lyme Street Fire Station, already designed ($180,000). After discussion, it was decided to discuss the OLFD carryover request in the August meeting.
HVAC Project: Mrs. Reemsnyder stated that a new HVAC system has been investigated and would like to move forward with it. She has a quote and the HVAC company will be bringing a presentation to the Board of Selectmen before approval. She will share the information with the Finance board in the near future. There is an issue with the Town Clerk vault with a faulty refrigeration system. Mrs. Reemsnyder stated that it could be put within the Town Hall Improvement line, however, she wanted to make the board aware of this problem that needs to be addressed. Mr. Russell stated that this problem is not a Town Hall Improvement, but a total replacement of the unit. Mrs.Stajduhar stated that this request should be placed as a Capital item. After discussion, Mr. Russell stated that additional funds be added to Capital to move on this repair. A motion was made by Mr. Kerr, seconded by Mr. Woolley for $19,500 for the HVAC system in the Town Clerk’s vault. Motion carried.
Garbage and Recycling Bin Order: Mrs. Reemsnyder stated that an order needs to be placed for additional blue and green bins. She read the quote to order 50 of each, trash and recycling for a total of $6,841 for bins and delivery. There was a discussion on the ten year warranty and replacement options and the quantity that should be ordered.
Board of Finance Meeting July 21, 2015
A motion was made by Mr. Woolley, seconded by Mr. Soucie to approve 100 blue and 100 green, to come out of the appropriate line item, in the amount not to exceed $15,000. Motion carried.
Rogers Lake Weeds Project Update: Mrs. Reemsnyder stated that New England Environmental received feedback from the DEEP regarding the town’s permit application for herbicide treatment and potential hydro-raking to control nuisance weeds within Rogers Lake. The DEEP Wildlife Diversity Program findings were that their database has determined that Rogers Lake is mapped with rare species of freshwater mussels and two fish species. In order to move forward with permitting and lake management activities, DEEP will require additional rate species survey work within Rogers Lake. Mrs. Reemsnyder stated that there are funds in their line, however, this is in addition to what was listed in their budget. She will keep the board posted on how the town will proceed.
White Sand Beach Request: Mrs. Reemsnyder stated that White Sand Beach requested assistance with a road repair and catch basin repair at the base of White Sand Beach Road right next to the town parking lot. Mrs. Reemsnyder conferred with Mr. Adanti who found a vendor who could perform the work for $5,400. White Sand Beach requested that the amount be split with the town and came before the Board of Selectmen. Mrs. Reemsnyder stated that the Board of Selectmen voted 2-1 to recommend that the town pay for half of the repair. There was a discussion about the Board of Selectmen and the Board of Finance’s roles and a change in practices by each of the boards. Mrs. Nosal stated that she made the motion that if the money could be available through the budget process, she
recommended to pay 50% of the request. Mr. Sibley stated that he questioned the process and was against the process in which this request was approached. Mr. Russell reiterated the practices that have been followed between the Boards of Selectmen and Finance. Mrs. Reemsnyder stated that the work is already being addressed , therefore, is asking for a reimbursement to work performed on the road. It should be noted that the town accesses this part of the road for the town lot. It was decided to table discussion until the August meeting.
Old Business
WPCA Sub-Committee Update: Mr. Russell stated that after several meetings with the WPCA, the Board of Finance voted to retain an attorney to investigate various issues within the WPCA. A sub-committee was formed to discuss and interview firms to best fit the needs of the board. Mr. Bernblum outlined the scope of services related to engagement of Legal Counsel for review of WPCA invoices in excess of the budget/appropriation. He stated that the town currently is in receipt of bills for services related to its wastewater plan which appear to have been in excess of budgeted amount and which funds were not approved by Town meeting. Mr. Bernblum highlighted the several firms that the sub-committee interviewed. After reviewing all of the firms selected, the sub-committee agreed
on a a Hartford based firm of Updike Kelly Spellacy and the attorney they interviewed specializes in Municipal Law, Government Reglations, Utilities Law. Mrs. Reemsnyder stated that the entire Board of Selectmen agreed with the Board of Finance that the decisions are in the town’s best interest. Mr. Soucie stated that the attorney will put forth an engagement letter that will require signatures of the First Selectwoman and the Chair of the Finance board.
Board of Finance Meeting July 21, 2015
A motion was made by Mr. Bernblum, seconded by Mr. Kerr to retain Atty. Robert M. DeCrescenzo of Updike, Kelly & Spellacy, P.C. Motion carried.
Selectman’s Report
Mrs. Reemsnyder explained the Administrative Order received by the town from the DEEP that orders completion of the study by 10/31/15. Completing the study will entail that all questions DEEP asked will be answered, submitting an Environmental Impact Evaluation and submitting an update 90 days later based on responses received. Mrs. Reemsnyder consulted with Atty. Andrew Lord regarding options for the town and was told that the town can comply which will require funding, appeal which would incur legal expenses, or ignore which could be the most expensive option in terms of legal action. The 4th option of this order states that a meeting with DEEP to continue to work together on how to proceed. Realistic consequences for noncomplying include fines assessed which is based on a matrix,
depending on the gravity of the violation, however, finds could amount to $100,000 if the Order is disregarded.
Mrs. Reemsnyder stated that the update on the World Energy bid, which offered the electricity needs of the town a rate of 6.6 per kilowatt hr. The town has been bundling together with Regional School District 18, PGN Library, the OLFD buildings, to get a rate of 8.85 cent per kilowatt hour that has been secured for two years.
Mrs. Reemsnyder reported that the Academy Lane fire dock expense could be up to $100,-$125,000. She would like to put this project out to bid and asked the board’s suggestion. The first step should be a Request for Proposal (RFP). After discussion, Mrs. Reemsnyder said that she will have a conversation with Keith Neilsson from Docko, Inc.
Mrs. Reemsnyder stated that the beach has been very busy and one police officer was out on workman’s compensation. Therefore, overtime has been incurred as a result of one officer being out and the increased volume of crowd down at the beaches.
Mrs. Reemsnyder stated that there hasn’t been a meeting of the Route 156 Bikeway and Sound View Improvments project, therefore, there isn’t too much to report at this time. At the last meeting, the committee voted to recommend moving forward with the project in phases previously outlined in the June meeting.
Mrs. Reemsnyder reported that the current Resident State Trooper contract has been extended until the end of July. The town’s share will increase from 70% to 85% and the contract is being reviewed by the Town Attorney.
Board of Finance Meeting July 21, 2015
Mid-summer Festival is this weekend and fireworks will be on Saturday night with the town band kicking off the festivities.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, August 18, 2015 at 7:30 p.m.
A motion was made by Mr. Kerr, seconded by Mr. Woolley to adjourn the meeting at 10:25 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes
Secretary
Michele E. Hayes
Office Manager
Selectman's Office
Town of Old Lyme
52 Lyme Street
Old Lyme, CT 06371
tel. 860.434.1605, x-212
fax. 434.1400
M-F, 9-4pm
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