Minutes of the Board of Finance meeting held on Tuesday, October 20, 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, H. P. Garvin, III,
Christopher Kerr, Janet Sturges
Alternate Members:~ Robert Jose, Gil Soucie
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director UNAPPROVED
Mary Jo Nosal, Selectwoman
Skip Sibley, Selectmen
Absent:~~~~~~~~~~~ Regular Members: ~David Woolley
~Alternate Members:~~ David Kelsey
Guests: Atty. Robert M. DeCrescenzo, Updike, Kelly & Spellacy, P.C.
20 +/- Town Residents
Kimberly Drelich, The Day Reporter
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~Mr. Russell called the meeting to order at 7:30 p.m. Mr. Woolley was not able to attend the meeting, therefore, a motion was made by Mrs. Sturges, seconded by Mr. Kerr, to have Mr. Jose vote for Mr. Woolley in his absence. Mr. Bernblum opposed the motion. Motion carried.
Mr. Russell made a request for the WPCA report to move up on the agenda to accommodate guests, therefore, a motion was made by Mrs. Sturges, seconded by Mr. Kerr, to move the WPCA discussion up on the agenda. Motion carried.
Old Business
WPCA Report: Atty. DeCrescenzo stated that he had the opportunity to talk with members of the Board of Selectmen, the town’s Auditor, the town’s Finance Director, and the chairman of the WPCA. He stated that his conversations were met with good rapport and open communication.
He outlined the history of events, starting with the $185,000 appropriation that was approved at Town Meeting to conduct a waste water study. An RFQ scope of services was received from the consultant on the study/project, Woodard & Curran, and the contract proceeded from approximately May 2013 through May 2014. During this time, there were 11 invoices received with not each one of them directly relating to the Woodward & Curran study. Currently, there are three unpaid invoices that total $108,000, which exceeded the appropriated amount causing the budget to be overspent.
Presently, the town is under an Adminstrative Order from the DEEP to complete the wastewater management plan. Within the draft, it states that the most cost-effective and feasible option to treat wastewater issues is to connect several shoreline neighborhoods to sewers in New London.
Board of Finance Meeting October 20, 2015
Atty. DeCrescenzo said that the work performed by Woodard & Curran was in response to questions and comments about the project by the State of CT DEEP and not under the direction of the WPCA. Within the contract, section 1.2, ‘Change in Scope of Services’, it states, “Client may, at any time, by written order, request changes to the Scope of Services or work to be performed. If the Scope of Services is changed in a manner that will increase or decrease Engineer’s costs or the time required to perform the services under this Agreement, there will be an equitable adjustment to this Agreement that must be signed by both parties.” Atty. DeCrescenzo didn’t find evidence that the scope of services performed and invoiced by the town’s consultants was executed by the town and there was no
proper Amendment to the contract that was fully executed by the town. The consultants performed work beyond the scope of the original contract for the waste water management study that residents approved for $185,000 in 2013. When Atty. DeCrescenzo questioned the consultants, they stated that the additional work was in response to comments on the draft study made by the DEEP. Through his review, Atty. DeCrescenzo learned that the invoices issued by Woodard & Curran were intended to be an outline of the cost of additional services and were not expected to be paid immediately. He said that he agreed that the three invoices should be paid as they represent services performed that the town will benefit from. However, he indicated that there was room for negotiation and a deadline for the date due should also be discussed. Mrs. Sturges stated that she has heard repeatedly that these invoices could be rolled into the bonding of the
project.
Mrs. Stajduhar stated that this expense is not a Capital project, but just a study. Atty. DeCrescenzo commented that a study is necessary, and the first steps, that will eventually result in a Capital project.
Mr. Bernblum asked if these unpaid invoices should be paid, and Atty. DeCrescenzo commented that he was in agreeance with the Finance Director, that every invoice incurred should be paid, but it could be argued that the consultants didn’t follow the terms of the contract. He stated that most of the conversations in which the invoices incurred were mostly between Woodard & Curran and the DEEP, and not with town officials. He recommended that the first selectwoman send a letter to the consultants outlining the town’s position regarding the scope of their invoices and the contract terms, and request that the consultants negotiate the invoices as to what steps are needed to be done to complete the project, and then put the steps in place in order to clear up these invoices. Atty. DeCrescenzo stated
that the town should clear up the “procedural issues” before deciding whether or not to proceed with a Capital project. A new scope of work should be developed and budgeted for in the town’s future budgets and send to a Town Meeting. He states that it’s not unusual for a project of this complexitity to run over the appropriated amount. He didn’t find that anyone affiliated with this project acted against the town and he feels that everyone he spoke with, all had good intentions towards the town. He noted that the invoices had no consistency and that Woodard & Curran should have been overseeing the study and keeping the study expenses on budget.
In closing, Atty. DeCrescenzo stated that any recommendations contained in his presentation were preliminary conclusions. He stated that besides a letter to the consultants regarding contract terms and invoices, the project should have a three person task force with a representative from the Boards of Selectmen and Finance and a WPCA member, as well as a town employee to act as a project manager. He suggested that the town officials have a meeting with the DEEP to clarify issues, and work towards getting the project back on track.
Board of Finance Meeting October 20, 2015
During public comment, a question was asked as to the date of the three invoices that are pending, to which Atty. DeCrescenzo replied that there were two in December 2014 and one in May 2015. Another question was asked as to why the DEEP can ask for more information that cost the town, to which Atty DeCrescenzo replied that the state agency has that right and has broad powers by the Federal Clean Water Act. He didn’t feel that the questions asked were out of the scope of a project of this size and the DEEP has the authority to operate under “Administrative Order”. Another resident stated that the town held a Town Meeting and a specific amount was approved for the study and the people of Old Lyme have not been informed or consulted in additional spending and the accountability when money was
not appropriated. Another resident stated that he believes that Woodard & Curran did not work on behalf of the town but rather to benefit themselves by allowing additional invoices to be incurred when there was no appropriation as they were supposed to be overseeing the project and knew the budget. Another Resident stated that he has been chair of various boards and is part of organizations in town and as a chairman and town representative, a budget should never be overrun without approval from the authorities in charge.
Approval of the Minutes of September 15, 2015 meeting
The minutes of September 15th were reviewed.
There being no corrections noted, a motion was made by Mr. Bernblum, seconded by Mr. Kerr, to approve the minutes as written. Motion carried.
Review of Monthly Financial Reports
Mrs. Stajduhar outlined the Financial Report Notes for September 2015. Under Revenues, the Property tax, total tax collections were $178,983, 53.31% of total tax department budgeted collected. Sound View parking brought in $11,646 from the lot and street kiosks. Under Grants – Emergency Management (NUKE) received $11,063 and DUI received $24,150. Other funds, Harbor Management Dredging Grant Fund $1,614,074 was received.
Mrs. Stajduhar detailed expenditures, which included First Selectman – Legal of $3,113 for attorney and State related expenses for Police Union grievances. Insurance – Property/Workers Comp payment of $27,207 and $20,207 respectively for second quarter. The WPCA Board paid $6,360 to Andrew Lord for attorney costs during July/August 2015.
Under Public Safety, Valley Shore second quarter payment was paid in the amount of $37,217. Debt Service – Principal/Interest paid out $275,000 and $42,906 respectively for the October 15, 2015 due date. Under Capital – Gas Tank Removal - $112,000 was paid to Pasqualini Construction ($22,000 upon signing contract and $90,000 upon delivery of tank/mobilization) with $136,000 for the total contract. Capital – Road Overlay - $51,200 was paid to Anton Paving for Burr Road.
Board of Finance Meeting October 20, 2015
Other funds include Road Improvement Fund - $390,000 was paid to Pasteryak Paving for the roads at Rogers Lake. The Building Improvement Fund paid $29,989 to Benedetto Heating and AC, LLC as deposits on the new EMME heating system. Hains Park Boathouse Fund paid $1,168 to Regatta Dock Systems for additional flotation/dock connections. The Town Woods Park Fund paid $5,000 to LOL Jr. Womens Club for playground at Town Woods Park project. Harbor Management Dredging Grant Fund gave $210,000 in deposits to Patriot Marine LLC for mobilization.
Mrs. Stajduhar stated that she wanted to keep the Board informed of the status of ongoing projects in town, therefore, distributed a detailed Expenditure and Revenue sheet for three active projects; Sound View/Bike Path Improvement, Harbor Management Dredging Grant, and Hains Park Boathouse Project for their review.
New Business
Town Vehicle inventory/status: Mr. Russell commented that he had requested an inventory and status of town vehicles for budget season. Knowing the age and condition of vehicles may assist in planning future purchases before the upcoming budget season begins.
Selectman’s Report
Mrs. Reemsnyder stated that the Boathouse committee had two design schemes and decided on “Scheme A”. This design offers storage area, an exercise area, however has no bathrooms or a second floor. They will be using some of the funds to renovate the bathrooms and add a pavilion at Hains Park.
The Board of Selectmen and the Dept. of Transportation (DOT) have approved the preliminary design of the Rte. 156/Bikeway Improvements project. The engineers are making adjustments to address drainage issues that has plagued Pond Road with flooding problems. The committee is waiting for formal notification from DOT on the final design and will schedule a public information session at that time. They are planning on starting construction either in early spring or fall of 2016.
Mrs. Reemsnyder received a letter from the Rogers Lake’s project manager stating the the NDDB did find a very small population of the rare freshwater mussels throughout the lake and less in the treated areas. The NDDB will decide how the findings will impact the proposed work as it can postpone further weed treatment. She will keep the Finance board posted.
The Junior Women’s Club has taken on a “Love your Playground” project. The organization is holding several fundraising events and has raised $10,000 so far. The town’s Park and Rec department gave them $5,000 from the Town Woods Park budget that were set aside for maintenance of the Town Woods playground. The equipment will be ordered once they receive approval from zoning and are hoping to install in the springtime. Mrs. Reemsnyder stated that CIRMA Insurance will be looking at the various playgrounds to address any safety issues that they may have.
Board of Finance Meeting October 20, 2015
Mrs. Reemsnyder stated that the Incentive Committee has been meeting and decided on changes to the Fire Department/Ambulance Association Volunteer retirement plan. Currently, the volunteers are offered a $1,000 tax abatement when they earn a sufficient number of points. The incentive committee worked out a policy that all new members would not receive the tax abatement, however the $1,000 would be put into their retirement account. Old members, that are already receiving the tax abatement, will be ‘grandfathered’ in until they designate a change of either receiving the tax abatement election, or having it added into their retirement account. However, once a decision to change from the tax abatement is made, it cannot be reversed. This will start in the next budget year.
The Black Hall and Four Mile Rivers dredging project is underway. Full grant funds have been received and the project has to be completed by the end of March, per grant specifications.
A Halls Road Improvements Committee was formed to provide the Board of Selectmen with recommendations for changes to Halls Road that will beautify the area in a manner that enhances the neighborhood and the Lyme Street arts community at a cost acceptable to the Town. They will be working in conjunction with the State DOT, as Halls Road is a state road, and collaborate with the Lower CT River Valley Council of Governments (CT RiverCog). The committee will assess the current configuration of the targeted area and determine the elements to be considered in an improvements plan (signage, lighting, sidewalks, etc). They will research funding opportunities and handle developing an RFQ for a landscape design, architectural and/or engineering firm to work on a Master Plan for Halls Road, as well as many more
areas of the charge. This will most likely be an ongoing committee with several phases of the project over a lengthy period of time.
The Board of Selectmen appointed a Solid Waste and Recycling Review Committee that will report to the Board of Selectmen recommendations in regards to solid waste and recycling for the town. The committee will be reviewing and updating, as needed, the Solid Waste Ordinance and any current contracts for waste removal. They will work with the current trash and recycling provider and collect data on waste and recycling amounts, collection schedules, and enforcement policies for noncompliant disposal within the barrels. The State is moving towards getting towns to recycle more and the committee will provide information and educational forums to educate residents on understanding waste management, regulations, as well as procedures and policies.
Mrs. Reemsnyder stated that Old Colony Beach and Old Lyme Shores applied for a grant to deal with flooding issues on the Sheffield Brook. There is a pipe that handles the overflow from the brook and they are planning on installing another pipe, doubling the capacity as well as install gates where it meets the sound, so storm surges can’t come back upstream. They received the grant in the amount of $700,000 to replace piping and add baffles to allow water to flow properly. There will be no financial impact to the town as this is the beach associations’ project.
Board of Finance Meeting October 20, 2015
The Town of Old Lyme is eligible for a $5,000 Bright Ideas grant. It can be used for energy efficient projects in town. It was asked if it could be applied toward the EMME system that will be installed in the Town Hall building. Mrs. Reemsnyder said that the town receives points when a home installs solar, or has their home audited by a home energy auditor, which makes the town eligible for more $5,000 grants.
A letter was sent to Old Lyme Sanitation stating that, as of Nov. 2015, the town will no longer collect the fee for disposal of septage pumped from properties located within the town. All fees for disposal at the Transfer Station will be collected by the operator of the facility and the operator will have to invoice the haulers. The idea is to not have the town hold a permit for septic disposal.
Mrs. Reemsnyder reported that Public Works employee, “Soupy” Campbell, is retiring on October 30th. He has been working for the town for over 30 years and a reception is going to be held on October 30th at the Senior Center to honor him for his many years of service.
Mrs. Reemsnyder stated that CRRA is now known as MIRA and were doing business with MDC, however, the contract was terminated and MDC was looking for $63,000,000 from CRRA. She received a letter stating that the courts found in favor of MIRA and they do not have to pay the $63,000,000 that MDC was hoping to receive.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, November 17, 2015 at 7:30 p.m.
A motion was made by Mrs. Sturges, seconded by Mr. Jose to adjourn the meeting at 9:10 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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