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Minutes of the Board of Finance meeting held on Tuesday, January 19, 2016 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, David Woolley
Alternate Members:~ Adam Burrows, Robert Jose, David Kelsey,
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director
Mary Jo Nosal, Selectwoman
Skip Sibley, Selectman
Absent:~~~~~~~~~~~ Regular Members:
~Alternate Members:~~
Guests: Atty. Robert M. DeCrescenzo, Updike, Kelly & Spellacy, P.C.
Paul Gianquinto, Boathouse/Hains Park Improvement Committee
Paul Fuchs, Boathouse/Hains Park Improvement Committee
Sue Campbell, President, Board of Directors, Lymes’ Senior Center
Nancy Campbell, Board of Director member, Lymes’ Senior Center
Bob Pierson, Treasurer, Board of Directors, Lymes’ Senior Center
Diane Blackwell, Chair, Friends of Lymes’ Senior Center 501c3 non-profit
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Call to Order
Mr. Russell called the meeting to order at 7: 32p.m.
Old Business
WPCA Update: Atty. DeCrescenzo has reviewed the contract and the performance of the contract. His report is complete and ready to be issued. The scope of his work was to look at the facts of the current bills, was there anything unusual, the propriety of the DEEP and the consultant. Atty. DeCrescenzo looked at all the areas of the RFP. The first phase of contract, Woodard and Curran was hired for $184,000. Based on that, an appropriation was developed not to exceed said amount. The DEEP approved a grant in the amount of $166,000. Atty. DeCrescenzo detailed 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.
Board of Finance Meeting January 19, 2016
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. Mr. Kelsey stated that the project continued to proceed with lack of communication.
Atty. DeCrescenzo stated that most of the conversations in which the invoices were 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. Mr. Kelsey felt that a budget was created and should have been followed. Atty. DeCrescenzo stated that the real deficiency is the failure to explain the relationship of the requisition to the work performed. In his final report, he has recommended to create a budget and make
sure it follows the correct process.
Atty. DeCrescenzo 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. Finally, he suggested consultation with DEEP to see how the study can be completed, and then prepare an amendment to the contract which does not get signed off on until everyone is in agreement. He will send his final report later in the week to Mr. Russell.
Boathouse/Hains Park Improvement Committee Update: Mr. Gianquinto stated that the Board of Selectmen expanded the Boathouse/Hains Park Improvement Committee membership to include three members of the Parks and Recreation Commission and the Regional District #18 Facilities Director to better represent the Town’s interest. The Committee revised the project by changing the following specifications: deleting the second floor and putting the Flex Space on grade, reutilizing existing foundations and slab, receiving OSBI Code Modifications, which permitted deleting bathrooms, all indoor plumbing, thermal insulation, heat and all septic system site work. Other changes included changing siding and trim from cedar to vinyl and composites, deleting roof monitor with clerestory windows,
deleting rubber flooring in Flex Space as well as in the changing rooms, and deleting lockers from the changing rooms. These changes, altered the size from 7,908 to 6,057 square feet and reduced the cost of the boathouse by an estimated $270,500. Mr. Gianquinto said that the current project funding is $933,800, which consists of: $478,000 CT State STEAP Grant, $405,000 Town of Old Lyme Appropriation, and $50,800 Boathouse Fundraising Committee Donations. He explained that Parks and Recreation Commission would like to enlarge the existing bathroom building, making it fully handicapped-accessible, as well as making it available for year-round use by adding
Board of Finance Meeting January 19, 2016
heat and insulation. They would also like to add an open pavilion, approximately 20’ x 32’ at Hains Park.
The Boathouse/Hains Park Park Improvement Committee currently expects that approximately $214,000 of the project funds will be available for those Park improvements, and proposes these items be implemented as a separate phase of the Hains Park Improvement Project since they are not specified as part of the STEAP Grant personal services contract scope of work. The construction drawings were submitted to the Fire Marshal and Building Official for review in early January, and the site plan is with the Zoning Enforcement Officer. The DEEP revised the personal services agreement to match the revised project description provided by the Boathouse/Hains Park Improvement Committee and Mrs. Reemsnyder, and the construction drawings have been submitted for DEEP’s review. The Committee presented the project to the
Parks and Recreation Commission on January 14th and will give a brief presentation at the Annual Town Meeting on January 25th. The Committee will submit a Special Permit Application to the Zoning Commission this month and will attend their meeting on February 8th, with a goal of starting construction as soon as possible to avoid additional cost due to escalation. It was noted that the upgraded bathrooms and open pavilion would need to be under a separate “Phase 2” of the project. Mr. Burrows requested a breakdown separating the Boathouse Phase 1, which is covered by the STEAP Grant, and, what would be included in a Phase 2 of the project.
New Business
Senior Center: Diane C. Blackwell, representing the Lymes’ Senior Center Board of Directors and Chair of the “Friends of the Lymes Senior Center” 501c3 non-profit, explained that the Senior Center was willed $125,000, which was left to the “Old Lyme Senior Center”. There was question of ownership and oversight of the donation between the two towns and the Senior Center’s Board of Directors. At the January 24th Old Lyme Board of Selectmen’s meeting, the Selectmen are in agreement that the Lymes’ Senior Center Board of Directors have full ownership and oversight of the monies (as per a 1994 Agreement between the Towns of Lyme and Old Lyme, as well as the By-laws of the Senior Center). The Board of Directors voted, and gave full authority, on moving the monies
out of the Town of Old Lyme’s Senior Center Programs account to the Friends of the Lymes’ Senior Center account. The Friends group wants to manage $100,000 of the donation via investment, and $25,000 remaining, in the Senior Center Programs account for the Senior Center Director’s use.
Upon canvassing local organizations (OLFD and Lyme Fire Dept., PGN Library, LYSB), bonding does not appear to be a practice. Fifty percent of the groups require two signatures for withdrawals of monies, all groups do not have credit or debit cards attached to the accounts, some have assistant treasurers, none have Conflicts of Interest Policies or caps on withdrawals. Review of data suggests that the Friends of the Lymes Senior Center have policies in place that exceed other local organizations in the Towns of Lyme and Old Lyme. Lymes’ First Selectman, Ralph Eno, expressed to Mrs. Reemsnyder that the donation belongs to the two towns in as much as the towns own the Senior Center. He wants 25% of the funds for Capital expenses and tax relief for his town. Mr. Eno does not want the
Friends organization to have any ownership or oversight of the monies. Ms. Blackwell concluded that the Old Lyme Board of Selectmen and Board of Finance seem to agree that the funds belong to the Senior Center and that it has full oversight of the funding. Both Boards agree that a legal opinion will be requested to clear up any confusion and to make a policy for the future. Ms. Blackwell stated that a meeting will be held with Mr. Eno in the future.
Board of Finance Meeting January 19, 2016
Mr. Woolley left the meeting at 9:55pm, therefore, Mr. Bernblum made a motion, seconded by Mr. Garvin to appoint Mr. Burrows to vote in Mr. Woolley’s place. Motion carried.
A motion was made by Mr. Burrows, seconded by Mr. Kerr, that this donation be treated as any other donation received by the Senior Center, which is to be deposited into the Senior Programs account, pending legal review. It was noted the the Old Lyme Board of Finance supports the process and procedures followed by the Lyme’s Senior Center. Ms. Blackwell requested that the attorney to be consulted is one familiar with the town and town practices and suggested Attorney Jane Marsh, which the Board felt was an acceptable choice.
Approval of the Minutes of December 15, 2015 meeting
The minutes of December 15th were reviewed. A motion was made by Mr. Bernblum, seconded by Mr. Kerr to pass the minutes with the following corrections. Correction on page 1, last paragraph, last sentence, change “a general” to “unassigned”. On page 2, 2nd paragraph, Mr. Burrows wanted to include, “Mr. Burrows noted that Mrs. Reemsnyder reported at the November 15th Board of Finance meeting that the current cost projections for the Boathouse project are below the available approved funding. Mr. Burrows also noted at a town meeting, the Town of Old Lyme voters approved $405,000 be added to the $478,000 STEAP grant already approved by the State of Connecticut for a total of $883,000 available for the Boathouse project. This means the projected
cost currently under budget.” The next sentence, change “eluded” to “alluded”. At the end of the Parks and Recreation Commission discussion on page 2, Mr. Bernblum felt it should be noted that, “Mr. Russell stated that, consistent with the town’s historic manner of resolving differences of opinion, the parties should meet to discuss the issue and that no attorney should be hired.” On page 4, 2nd paragraph, last sentence, add the word, “the” and an “s” to the word “drawing”.
Because of the modifications listed above, Mr. Bernblum withdrew his motion to approve minutes, Mr. Kerr withdrew his 2nd to the motion, until the minutes reflect the modifcations suggested. It was decided to table the minutes until the next meeting.
Review of Monthly Financial Reports
Mrs. Stajduhar distributed the Financial Report Notes for December 2015 as well as detailed sheets highlighting expenditures and revenues for the three ongoing projects in town (Boathouse/Hains Park Improvements, Harbor Management Dredging Grant, and the Sound View/Bike Path Improvement design).
Mrs. Stajduhar highlighted the budget overview for FY2016/17. The anticipated changes in operating is $65,972 or 1.09%. Although unconfirmed, an estimated increase was used for Regional District #18 of $500,320 or 2.00%. Salaries increase is $13,615 or .51%. The Capital-net is anticipated decreasing $419,819 or -41.73%, increasing the total budget over prior year, $160,088 or .46%.
Board of Finance Meeting January 19, 2016
Selectman’s Report
Mrs. Reemsnyder stated that the Annual Town Meeting is next Monday night in the Middle School Auditorium at 7:30 pm. Agenda items include accepting the Annual Town Report and Blackwell Lane Extension as a town road.
Inter-Town Capital Equipment (ICE) Purchase Incentive Program: Another item on the Town Meeting agenda is to adopt a Resolution endorsing the Inter-Town Capital Equipment (ICE) Purchase Incentive Program for the creation of a multi-site UHF simulcast system for the Towns of Chester, Deep River, Essex, Durham, Haddam, Killingworth, Lyme, Middlefield, Old Lyme and Westbrook, in order to provide enhanced communications for rural volunteer firefighters and medical technicians in those towns, as well as to authorize that Mrs. Reemsnyder can sign necessary documents with the State Office of Policy and Management under the ICE Grant Program. She stated that Valley Shore is applying for an ICE grant.
Commercial Property Assessed Clean Energy (C-PACE) program: Mrs. Reemsnyder stated that an agenda item at Town Meeting is to approve the use of the Commercial Property Assessed Clean Energy program (C-PACE), established by the State Legislature, in order to facilitate financing for clean energy improvements to commercial properties within the Town, and will authorize her to execute necessary C-PACE Agreement. This program will allow for commercial business owners and property owners to make their businesses more energy efficient. The businesses can pay for the energy upgrades over 10-20 years at a lower interest rate and the businesses have to save more than they’re investing.
An oil painting on canvas entitled “Family Gathering for Tea”, painted by Wilson Henry Irvine (1869-1936), was gifted to the town by George M. Yeager of New York, NY, and will be accepted at the Town Meeting next Monday.
Fire/Police Boat Consideration: Mrs. Reemsnyder stated that the Fire Department would like to call a Town Meeting towards the end of February to discuss the purchase of a combination Fire/Police boat that they are considering purchasing. The Board of Selectmen voted to put a refundable $1,000 deposit on the boat in order to hold the price for sixty days, pending town approval.
EMME Heating System: The EMME heating system installation has been completed and is working quite well in most areas. There are a few tweaks, such as, extra sensors that need to be installed in some harder to heat areas that will be necessary to improve functionality.
Dunbar Armoured Pick up Service: Mrs. Reemsnyder stated that on January 5th Dunbar Armour Car Service has started picking up bank deposits twice a week during the busier months at the Town Hall. The service is of no cost to the Town when a particular criteria is met, such as, a certain bank balance amount maintained in the Town’s account.
Board of Finance Meeting January 19, 2016
Rte. 156 Bikeway/Sound View Improvments: Mrs. Reemsnyder stated that the Route 156 Bikeway/Sound View Improvements Committee continues to meet regularly and is reviewing specifics in the design and making particular tweaks to the plan. The committee is discussing lighting options with Eversource, as well as tree, benches and bike rack options. The Committee is planning another public presentation in April, when there will be more residents in town, and is hoping to start construction after Labor Day, 2016.
Rogers Lake Weed Study: Rogers Lake Authority has applied for a State grant on the weeds study for Rogers Lake. They were approved for an $18,500 Grant to study the situation in the Lake.
Black Hall/Four Mile River Road Dredging Project: Mrs. Reemsnyder reported that the Black Hall and Four Mile River dredging project is making wonderful progress and the project manager is doing a good job overseeing the project. The project needs to be completed by March 31st and they’re working right on schedule so far. The Four Mile River is now completed and the dredging of the Black Hall River has already been started.
Halls Road Improvement Committee: The Halls Road Improvement Committee was formed a few months back and has already had three productive meetings. A presentation by BL Companies gave good feedback to the Committee. A Business Breakfast is planned with the Town of Old Lyme and the Lyme-Old Lyme Chamber of Commerce on Wednesday, February 10th from 7:30am to 9:00am. There will be a brief presentation by the Committee’s Chair, BJ Bernblum, updating the community on what the Committee has been working on so far.
Proposed Northeast Corridor Rail Line: Mrs. Reemsnyder attended a meeting in Hartford and voiced her opposition to one of the alternative rail plans for the Northeast Corridor, which calls for the addition of new tracks from Old Saybrook to Kenyon, R.I., that would cut through the heart of the Old Lyme Community. The new segment of tracks in CT proposed under Alternative 1 would begin east of the Old Saybrook station, shift north of the existing rail tracks, cross the Connecticut River, and then run roughly parallel to Interstate 95 through Old Lyme and East Lyme. This plan would impact Old Lyme’s commercial area, village center, historic sites and individual properties, as well as Museums, Art Associations, wetlands, open space, etc. This project has to submit an EIS (Environmental
Impact Study) and still has to have the funding available to implement an alternative plan.
Letter from Health Director to the WPCA: Mrs. Reemsnyder stated the Health Director, Dr. Vijay Sikand, told the Water Pollution Control Authority (WPCA) Tuesday that factors, including unfavorable soil, excessively high development desity, and septic system crowding, have “created a perfect storm for serious health hazards to residents exposed to the groundwater” in the Hawk’s Nest vicinity and neighboring beach areas. In a letter submitted to the WPCA, Dr. Sikand said the the town’s Health and Sanitation departments have compiled years of data into the report, and addressing groundwater pollution in the beach areas, requires a comprehensive approach rather than dealing with neighborhoods on an individual basis, stating the only way to solve the problems is as a whole. In the
January 12th letter to the WPCA, he outlined concerns that the comprehensive data that has been accumulated reveal that groundwater in these areas is polluted and an obvious hazard to health judged by current clean water standards.
Board of Finance Meeting January 19, 2016
He expressed concerns for vulnerable individuals with compromised immune systems might develop serious preventable diseases from exposure to water that is contaminated by pathogens or excess nitrates that may exist in polluted ground water that are currently subject of research into water quality and its effects on human health. Mrs. Reemsnyder stated that she has met with DEEP and a plan to sewer Sound View immediately and closely monitor Hawk’s Nest Beach. This would mean additional work for the engineer, as well as submitting an EIE (Environmental Impact Evaluation). The WPCA recommended that Woodard & Curran consultants complete a draft wastewater management plan and an EIE with updated information, which would then be submitted to the DEEP. The additional work by the consultants would
cost approximately $5,000.
Mrs. Reemsnyder stated that before the town moves forward, she wanted the Boards of Selectmen and Finance to be aware that this is forthcoming, as well as needing to know in advance of the work, and where the funds would come from. Mr. Russell stated that in regards to WPCA, the town needs to get back to Woodard and Curran on several matters. Mrs. Reemsnyder stated that a task force should be developed before the meeting.
PGN Library Capital Improvement Plan: Mrs. Reemsnyder statd that she met with officials from the PGN Library to discuss a Capital Improvement plan they are considering. The plan is for a renovation project of the library and parking configuration. Presently, it is in the preliminary stages of design and additional information will be forthcoming as progress develops.
Septage Disposal equipment: Mrs. Reemsnyder explained that at the septage disposal site there is some equipment (tanks, etc.) that is considered assets to the town. If the town does not remove the equipment, it would be considered “abandoned” and Old Lyme/Shoreline Sanitation (Gary Yuknat) would take ownership over it. The Board of Selectmen met, along with other officials, at the site to discuss what would be most feasible and cost effective to the town. It was decided that the best thing for the town would be to abandon the equipment and allow Mr. Yuknat to take it over. Soil testing would have to take place as that is part of the permit which has expired on December 31, 2015.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, February 02, 2016 at 7:00 p.m., which starts the budget process, commencing with the Old Lyme Fire Department. Mr. Bernblum volunteered to join Mr. Woolley and Mr. Garvin in assiting with Public Safety, which is the first area of discussion.
A motion was made by Mrs. Sturges, seconded by Mr. Kerr to adjourn the meeting at 11:00 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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