Minutes of the Board of Finance meeting held on Tuesday, November 15, 2016 at 7:30 p.m. at the Old Lyme Memorial Town Hall Meeting Hall.
Present: Regular Members:~ Andrew Russell, Bennett Bernblum, Christopher Kerr,
Janet Sturges, David Woolley
Alternate Members:~ Adam Burrows, Robert Jose
Bonnie A. Reemsnyder, First Selectwoman, ex-officio
Nicole Stajduhar, Finance Director
Tim Griswold, Treasurer
Mary Jo Nosal, Selectwoman
Skip Sibley, Selectman
Absent: Regular Members: H. P. Garvin, III,
Alternate Members:~~David Kelsey
Guest: Judith Read, Resident
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Mr. Russell called the meeting to order at 7:30 p.m. Because there is a regular member absent this evening, a motion was made by Mrs. Sturges, seconded by Mr. Woolley, to have Mr. Jose vote for Mr. Garvin in his absence. Motion carried.
Approval of October 18th meeting Minutes
The minutes of October 18th meeting were reviewed. Corrections noted are as follows: Page 2, 4th paragraph, 2nd sentence, include “it noted” after the word “if”. On page 3, 2nd paragraph, 1st sentence, changes the word “Presently” to “Currently”. Page 4, 1st paragraph, 1st sentence, change the word “affiliated” to the word “associated”. Same page, 3rd paragraph, last sentence, adds the word “Town” before “Treasurer”. Same page, 4th paragraph, 2nd sentence, adds the word “Grant” after the word “STEAP”. Same page, it was requested that the 5th paragraph be
replaced with the following: “Mr. Burrows stated committees and/or commissions need to use a more standardized process established by the town for expending grants and funds. This process might be as follows: The committee approves the expenditure and a signed requisition form is attached to the quote. This is submitted to the business manager who also signs the requisition form and then produces a purchase order to encumber the funds. The purchase order is sent to the contractor to officially authorize the start of the work or make a purchase. The Town would then have a record of the authorization for the expenditure prior to the work getting performed.” Last correction noted is on page 5, 1st paragraph, 2nd sentence, add “Ed Adanti” after “town liaison”.
There being no further corrections, a motion was made by Mrs. Sturges, seconded by Mr. Jose to approve the minutes as modified. Mr. Bernblum abstained as he wasn’t at the meeting. Motion carried.
Board of Finance Meeting November 15, 2016
Review of Monthly Financial Reports
Mrs. Stajduhar distributed the Annual Financial Report for year end June 30 2016 from the auditors and stated that the auditors will be attending next month’s meeting to answer any questions the board may have. Mrs. Stajduhar stated that the budget letters have been sent out to the various spending agencies and should be returned to the Finance office by December 1st.
October 2016 Report: Mrs. Stajduhar outlined the October 2016 Financial Report Notes. Under Revenues, the Property tax, total tax collections were $224,747, with 45% left to be collected. A new line item, Legal Reimbursement, collected $1,800 relating to a change in process to the Tax Collector. Grant revenue received $81,142 ECS is 25% collected and $7,506 reimbursement for Sound View project study.
Other Funds: Miscellaneous – Hains Park Improvement received $5,200 to date restricted for items outside the scope of the original project (gazebo/benches, etc.).
Expenditures were reviewed which included Selectman – Legal, of which $9,734 is related to Police personnel matters, paramedic contract and legal action against the Town. Finance – Contracted Services paid $3,000 progress payments to auditors. The Health department paid out $76,897 to Ledge Light Health District ($60,000 - $20,000 for employee and $55,346 - $18,449 per capita). Special Deductions paid $3,604 (with a maximum of $7436) for unemployment to the former Sanitarian. Public Works replaced two Maintainer III employees with two new hires at the Maintainer II level. Under Town Woods Park – Repairs/Maintenance spent $2,119 with $1,812 for camera repairs. Under Capital, $6,005, an Emergency Management reimbursable for replacement of fire alarm system at the EOC (Emergency
Operations Center) to be reimbursed by the Millstone Grant Program. Capital – Public Works spent $10,300 for salt shed electrical wiring and $39,073 for Public Works garage floors for 50% deposit and miscellaneous supplies.
The percentage of general government budget spent to date (without Capital or RSD#18 included) is 38%, Onetime costs not yet expended include half of stipends in the amount of $275,897 and $230,000 in Transfers out.
Other Funds include the Hains Park Boathouse - $74,024 was spent with $72,723 being Scope Construction’s first payment request for August 2016.
Old Business
Academy Lane Fire Dock: Mrs. Reemsnyder reminded the board that Keith Neilson from Docko, Inc., recommended that the town do a few test holes at the Academy Lane Fire Dock to investigate the stability of underlying soil. The company selected Dr. Clarence Welti, Geotechnical Engineers, to perform a preliminary geotechnical study for the reconstruction of the Lieutenant River Fire Wharf on Academy Lane. Welti performed two borings within the existing wharf to a depth approximately 30 feet below the existing grades. The wharf consisted generally of sandy fill placed over the natural soils and retained by horizontal timber cribbing.
Board of Finance Meeting November 15, 2016
In his report, Welti noted that the existing wharf and cribbing are in a highly distressed state, particularly those portions that have the greatest exposure to the river currents and felt that the shoreline within this area may have high erosion vulnerability. This blend of soils is compressible and would not support frequent loads attributable to increased fill and live loads of the Fire Department pumper trucks without distortion. As a result of this site characteristic and knowing that this project must be built from land, a suitable alternative project design has been developed. The new project approach will involve installing a steel sheet pile perimeter, with sheets of opposing sides anchored to each other through a system of tie-back anchor rods, unsuitable subsurface soils removed, and new
processed gravel base materials placed. The traffic surface will be crushed stone. The sheets will be left high to form a containment wall for firefighting apparatus access. An RFQ for proposal was posted with two companies responding and Machnik Brothers Construction was selected. Mrs. Reemsnyder detailed the expenses, stating the total project cost would be $187,171 (without contingency amounts). She stated that there are some unknowns with projects like this and thinks a 25% contingency would be appropriate. There is $153,000 remaining in budget and the project could cost between $213-$234,000, depending on the contingency amount (10% or 25%). The additional $60-$80,000 needed to complete the project would have to be recommended to Town Meeting in January.
Mile Creek Bridge: Mrs. Reemsnyder stated that she received a Proposal for Civil Engineering Design and Permit Services for the Mile Creek Road Bridge over the Black Hall River. After the State performed inspections of several bridges within the town and the Mile Creek Bridge was deemed in poor condition, the proposal includes replacement of the existing superstructure with a new superstructure instead of repairing the existing bridge. State funding specifically for this project is through the CTDOT State Local Bridge Program and the town may qualify for a STEAP grant for bridge repair and structure replacement because of the condition of the existing bridge. Projected construction cost is approximately $600,000 with hope that 48% will be covered by Grants and State Programs.
Mrs. Reemsnyder reported that currently there is $96,700 in Capital with $100,000 put aside for the engineering portion of the project, which may run $5,000 over budget on engineering.
Facilities Update: Mrs. Reemsnyder reported on the status of a few key projects that the Facilities Manager is working on. Mr. Parcak is obtaining quotes to replace the existing HVAC system for the Senior Center. The cost for the system should be at or near the original project cost and result in increased efficiency during both the heating and cooling seasons. The Town Hall pump #1 failed due to improper installation and a constant overrun condition and was replaced with a variable speed circulator. He would like to change the other 3 circulator pumps which would result in better delivery of heat at a much lower cost. Mr. Parcak is working on the DEEP issue of truck washing at the Public Works facility. An old Oil Water Separator/Gross Particle Separator was
found at the facility, along with buried concrete tank. Both tank and separator require cleaning and pumping and the material will be treated as contaminated. Once pumped and cleaned, the tank may be able to temporarily serve as a holding tank for wash water from the facility. The long term solution is to replace the holding tank with a compliant separator with a filter to separate the particulate. Mr. Parcak is working with Nathan Jacobson to facilitate engineered construction documents so that this can be installed which will result in a cost savings to the town and long term compliance with DEEP.
Boathouse Hains Park Improvement Project: Mrs. Stajduhar stated that there are questions on two invoices (each for $2,200) from the architect and back charges in the amount of $10,300 associated with the project’s architect.
Board of Finance Meeting November 15, 2016
Mr. Griswold stated that at the last Selectmen’s meeting, there was a discussion about additional funds that may have to go to town meeting to complete the project. There was a discussion as to the timeline of the Boathouse and the projected date of completion. Mr. Griswold noted that the quicker the project gets completed, the quicker the amount which has to be recommended for Town Meeting will be known. Mr. Russell stated that in order to go before the town for additional monies to complete the project, the board will need to understand specifics as to what will actually be built. Mrs. Reemsnyder stated that there will be more information available for the December Board of Finance meeting.
Selectman’s Report
Rte. 156 Bikeway/Sound View Improvements Project: Mrs. Reemsnyder reported that the ground breaking ceremony took place on October 3rd at Sound View and work has begun with cutting into the pavement to install drainage. She has attending a few construction meetings, along with Ed Adanti, the town’s liaison for the project. Mrs. Reemsnyder stated that the State DOT, Wengell, McDonnell & Costello (WMC) Consulting Engineers, as well as Mr. Adanti are watching over the project as it progresses.
WPCA - Administrative Order: Mrs. Reemsnyder reported that at last Wednesday’s meeting, the Coastal Waste Water Plan was reviewed and the suggested plan for submission to the DEEP for the EIE (Environmental Impact Evaluation) was approved. As previously reported, the DEEP has confirmed that the new scope of work is eligible for the 55% reimbursement.
Ledge Light Health District: Mrs. Reemsnyder stated that the date of transition over to Ledge Light Health District was on November 1st. There is a meeting scheduled for November 17th between Ledge Light representatives and the Land Use Departments to discuss scenarios and procedures of the departments with regards to working with a Health District as this is all new to everyone involved. Mrs. Reemsnyder stated that local businesses have to be educated as well about working with a Health District as they are not accustomed to the new policies and procedures. However, she has found Ledge Light to be very efficient, thorough and customer friendly with working with individuals and businesses. Mrs. Reemsnyder commented that Ledge Light will be discussing
their 2017 budget at their December meeting.
NorthEast Corridor/Federal Railroad Association (NEC/FRA): Mrs. Reemsnyder stated that she sent Sarah Feinberg a packet which included letters of concern from local residents and businesses that would be seriously impacted by the pending railroad Alternative 1 option. The packet also included letters from real estate agents who have stated that several large transactions have already been cancelled because of the uncertainty of the FRA’s plan. Mrs. Reemsnyder commented that she hasn’t received any response from Ms. Feinberg or other representatives on their decision.
LED Lights Mrs. Reemsnyder stated that a contract with Tanko has been signed and the pilot program (12 streetlights with two different levels of lumens, using 2-3 manufacturers GE, American Electric, Phillips) will be installed in December. The areas selected for the pilot program are Halls Road, Lyme Street and McCurdy Road.
Board of Finance Meeting November 15, 2016
Mr. Burrows gave a memo to Mr. Russell, Finance Board Chair, requesting that the current Budget Format be discussed. Mr. Burrows suggested that the Town’s Actual and Budgeted Expenses and Encumbrances in the monthly report, the Regional School District #18 for account #01-400 lines be relocated from the beginning of the report to the end of the whole report. This change will be a direct match to the budget report that is presented to the citizens at the Annual Town Meeting. He explained that this change would also allow Finance Board members to monitor actual monthly “Balance Remaining” and “Percent Left” in the $8,733,538 Town Budget. He stated that the $8,733,538 number for the FY16/17 Town budget is not located anywhere in the monthly budget report.
Mr. Burrows questioned why the Insurance and Deductions in the FY16/17 Town Budget separates Insurance of $727,650 (Medical, Life, Property/Liability, Worker’s Comp., Fire Dept., and Bonds) and Deductions of $407,000 (Social Security, Unemployment, Pension, Sick buyback/Vacation time) from where they are actually used or expended. He suggested these funds be moved into the various accounts of actual expenditure to give an accurate picture of the total cost for each program within the town government. Mr. Russell stated that he will review the memo.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, December 20, 2016 at 7:30 p.m.
A motion was made by Mrs. Sturges, seconded by Mr. Jose to adjourn the meeting at 8:50 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes
Secretary
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