Minutes of the Board of Finance meeting held on Tuesday, September 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, Christopher Kerr, Janet Sturges
Alternate Members:~ Robert Jose, David Kelsey
Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director
Tim Griswold, Treasurer
Mary Jo Nosal, Selectwoman
Absent:~~~~~~~~~~~ Regular Members: H. P. Garvin, III, David Woolley
~ ~Alternate Members:~~Adam Burrows
Guest: Phil Parcak, Facilities Manager
Nancy Hutchinson, Resident
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~Mr. Russell called the meeting to order at 7:30 p.m. Because there are two regular members absent this evening, a motion was made by Mrs. Sturges, seconded by Mr. Kerr, to have Mr. Kelsey vote for Mr. Garvin, and Mr. Jose to vote for Mr. Woolley in their absence. Motion carried.
Facilities Manager
Mrs. Reemsnyder introduced the new Facilities Manager, Phil Parcak, who is a retired facility manager for DOT and has many years of experience. He will be working about 10 hours a week. Mr. Parcak summarized his many years of experience. He has been working on Fridays until October and has met with various key building managers to introduce him and discuss the individual town building’s needs.
Approval of August 16th meeting Minutes
The minutes of August 16th meeting were reviewed. There was a correction noted on page 2, 1st paragraph, 4th sentence should read “Ms. Martino stated that population per town is based on Dept. of Public Health latest census data and added that ….” Second paragraph, 7th sentence, it was requested to delete first seven words and begin sentence with, “Present Middlesex commitment…” Within the same paragraph, delete last sentence. On page 2, 3rd paragraph, 1st sentence, change the word “requested” to “suggested” and delete the words “and to postpone a decision of approving”. Correction to 4th paragraph, to begin the
paragraph with “After further discussion, it was decided to move forward and a motion was made….” On page 3, delete the last paragraph titled, “Fiscal Year 2015/16 Year End Update” and replace with the following: “Mrs. Stajduhar highlighted the departmental revenue collections. Total revenue actually collected was $358,000 over budget amounts. Total actual expenditures were $1,300,000 under budget before taking carryovers of $272,403 into account. Additional audit adjustments still need to be recorded but a $600,000 reduction in surplus contemplated by the budget was avoided and we anticipate an estimated net addition to surplus from FY15/16 of at least $500,000.” On page 5, at the end of the 2nd paragraph, add the sentence, “The Board was not aware of any evidence of suspected fraud”.
Board of Finance Meeting September 19 2016
After discussion, it was decided to postpone approval of the August minutes until further clarification.
Review of Monthly Financial Reports
August 2016 Report: Mrs. Stajduhar outlined the Financial Report Notes for August 2016. Under Revenues, the Property tax, total tax collections were $565,822, with 47% left to be collected. The Parking revenue is $35,504, with 20% left of the budget to be collected.
Grant Revenues included $114,882, or 50%, of annual funding from Town Aid Road, $29,502 for Sound View Improvement Study Reimbursement, and $79,946 MRSA Sales Tax Sharing (Lyme rejected this funding) Mrs. Stajduhar stated that if a town’s budget increases over 2.5%, the tax sharing is only at a rate of 50%.
Expenditures included Contracted Services for Finance - $4,000 for progressive payment to the auditors, and, Info Tech - $3,000 for annual GIS fees to Applied Geographics. Under Special Deductions - $4,700 was paid for Town Employees and sick buyback as well as a Public Works employee leaving employment. The Parks and Recreations Seasonal Staff line paid $17,885 for 40 employees, and the Police Rangers line paid $13,459 for 14 employees.
Capital expenditures include $13,679 under Emergency Management Equipment for new communication equipment, and $55,083 for site preparation and materials/structure materials/assembly of the Public Works Salt Shed. Other Funds include $125,752 to Pasteryak Construction for the Ferry Road paving project.
The percentage of general government budget spent to date (without Capital or RSD#18 included) is 17.4%, Onetime costs not yet expended include half of stipends in the amount of $275,897 and $630,000 in Transfers out.
Carryovers: Mrs. Stajduhar highlighted Carryover expenditures for August which included $63,138 for the Public Works Salt Shed and $61,450 for State Police radio upgrade.
Hains Park Boathouse Project as of 08/31/16: Mrs. Stajduhar highlighted the total expenditures which equaled $149,001.54.
Sound View/Bike Path Improvement – Preliminary Design Phase and Specs as of 08/31/16: Mrs. Stajduhar highlighted the Sound View Project stating the appropriation approved at Town Meeting on March 24, 2014 is $148,500. Total Expenditures as of 8/31/16 is $108,508.07 and the amount unexpended, which does not include retainage for BSC is $39,991.93. Revenues received (State reimbursements) is $86,262.30.
Board of Finance Meeting September 19 2016
Old Business
Mrs. Reemsnyder stated that one issue with the boathouse had to do with the structure of the present foundation. It was discovered that the present slab and foundation could not be used to support the new structure. Therefore, it was more cost effective to replace the existing foundation. She highlighted a change order in the amount of $103,632.86, and explained how it was derived. The Board of Selectmen held a Special meeting on September 14th to approve this change order.
There was a discussion on various items omitted to assist in offsetting the overage. Mr. Griswold distributed Draft budgets for the Hains Park Boathouse Project that he has created with the Finance Director. He has met with the Chair for the Boathouse Committee to detail the specifics. Mrs. Sturges asked if the docks and restrooms were separated out of the boathouse project or included in the cost of the project.
New Business
Mr. Russell stated that last Friday was the initial meeting of the Board of Selectmen and Board of Finance chair with Regional School District #18 administrators. It was reported that the High School has a high enrollment at 490 students this year. However, the lower grade levels are down 50%.
Mr. Griswold stated that he has been working with Mrs. Stajduhar and the Chair of the Boathouse Committee to develop a comprehensive budget that parallels the format of budgeting the town and other boards follow. Mr. Griswold distributed a budget draft that was put together by the Chair that includes columns titled Category, To Date, Balance to Complete and Total. He explained that it does not include enough data to fully follow where the project is in expenditures and percentages spent. Mr. Griswold then distributed a Town of Old Lyme Draft Hains Park Boathouse Budget which models the town’s format using columns labeled, “Description, Budget, Actual, Unspent, % Spent, and Retainage (5.00%)” He explained that with this format, the actual project expenses could be listed and further broken
down to Contractor expense, Contingency budget, etc. He explained that the second format presented mirrored the town’s budget and was much more comprehensive and would also make it easier for the Finance board and Finance Director to follow.
Selectman’s Report
Sound View Improvement Project: Mrs. Reemsnyder stated that there was a pre-construction meeting held on September 8th and a Letter to Proceed issued on September 12th. The Contractor anticipates starting the first week of October. The contract came in at $631,441, and the supplemental PAL (Project Authorization Letter) agreement came in indicating that the project is eligible for 80% reimbursement, up to $911,100, which included the bid and a 10% contingency added to the total amount, bringing the amount to $695,000. The entire Total Construction Cost is $911,100, and the amount approved at Town Meeting is $877,000. Therefore, based on the PAL supplement, this would have to go before Town Meeting to approve an additional $34,100.
Board of Finance Meeting September 19, 2016
WPCA Administrative Order: The WPCA met and approved a “Scope of Work” for well evaluation to develop a testing plan for Hawks Nest Beach. This was sent to the DEEP for approval and assurance that it will qualify for 55% reimbursement of $10,629. Woodward and Curran presently is completing the plan to submit the EIE. Mrs. Reemsnyder stated that town and commission officials are discussing a pump station for the beach areas to be installed in the Town parking lot as part of the new bathroom facility at Sound View. A draft lease agreement is being developed and will be reviewed by the WPCA attorney and the Town Attorney. She will report further developments as the project progresses.
NEC Future: Mrs. Reemsnyder stated that a very large, well attended meeting was held at the High School on August 30th which had a panel of State and local officials representing Old Saybrook to Stonington, as well as Senator Blumenthal, State Senator Paul Formica, Congressman Joe Courtney, Representative Devin Carney, the Lower CT River Valley Council of Governments, and several CT DOT officials and Federal Railroad Administration representatives to discuss options for improving rail service in CT and the region. Although it was a very good meeting, she is still unsure it will result in a positive outcome. A small committee has been formed to discuss alternative plans and counter the decision should it not be a favorable one for Southeastern CT.
Academy Lane Fire Dock: Mrs. Reemsnyder stated that the Academy Lane Fire Dock is moving forward. Docko has hired a company to do boring holes which will determine the strength of the soil beneath the dock. A request for qualifications was published and two companies responded. Docko feels it is very important to choose the right company for this project and will be participating in the interview process of the two companies tomorrow afternoon.
Social Service Coordinator: Mrs. Reemsnyder reported that the Social Service Coordinator, Valerie Reinks, gave her notice a few weeks ago. The position was advertised and a small committee has been conducting interviews of the qualified prospects who have submitted resumes and applications. Mrs. Reinks has offered to stay on through this transition period and assist with residents’ needs and training the new hire, once selected.
Public Works Employee: Public Works employee, Jamie Curley, has taken another position and a new employee, Benjamin Carroll, has been hired. Mr. Adanti wanted someone who had some knowledge and experience with trees and tree cutting. Mr. Carroll worked in the landscape and tree cutting business and comes with the tree experience and knowledge that Mr. Adanti was looking for.
DEEP Inspection: The DEEP has performed an inspection of the Public Works facility and has reported a few deficiencies. One of the deficiencies is the truck wash area, as the trucks cannot be washed outside. Mrs. Reemsnyder spoke with the Town of East Lyme about sharing their facilities until a solution is achieved for Old Lyme. Mrs. Reemsnyder is working with Mr. Parcak on the response and answer for the DEEP.
Public Works Salt Shed: The Public Works Salt Shed has been built and is covered and paved. Mr. Kerr reported that there is still some sealing that needs to be performed to complete the project.
Board of Finance Meeting September 19, 2016
Although the Board of Finance meetings do not allow for Public Comment, Resident, Nancy Hutchinson questioned some of the procedures that the Boathouse Committee has presented thus far. She has requested that the town review the original presentation and plans that were promised to the community at the actual presentations of October 2014 and in January and compare them to what is going to be the actual, final plan.
A motion was made by Mrs. Sturges, seconded by Mr. Kelsey to adjourn the Regular meeting at 9:20 p.m. Mrs. Reemsnyder asked if, before adjourning, the Board should recommend that the request for $911,100 be sent to Town Meeting since the Town previously approved only $877,000. Therefore, the motion was withdrawn and a new motion was made by Mr. Bernblum, seconded by Mrs. Sturges to recommend that $911,100 go before the Town Meeting for the Sound View project. Motion carried.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, October 18, 2016 at 7:30 p.m.
A motion was made by Mrs. Sturges, seconded by Mr. Kelsey to adjourn the meeting at 9:25 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes
Secretary
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