Minutes of the Board of Finance meeting held on Tuesday, December 20, 2016 at 7:30 p.m. at the Old Lyme Memorial Town Hall Meeting Hall.
Present Regular Members:~ Andrew Russell,
Christopher Kerr, Janet Sturges, David Woolley
Alternate Members:~ Adam Burrows, David Kelsey
Bonnie A. Reemsnyder, First Selectwoman, ex-officio
Nicole Stajduhar, Finance Director
Tim Griswold, Treasurer
Mary Jo Nosal, Selectwoman
Skip Sibley, Selectman
Absent: Regular Members: Bennett Bernblum, H. P. Garvin, III
Alternate Members:~~Robert Jose
Guest: Joseph Centofanti, Cohn Reznick, LLP
Keith Neilson, Docko, Inc.
Norman Angus, Resident
Tom Schellens, Resident
Tom Machnik, Resident
Judith Read, Resident
Tom Risom, Chief, Old Lyme Fire Department
Phil Parcak, Facilities Manager
Jack Collins, Town Attorney, Suisman, Shapiro, P.C.
_______________________________________________________
Mr. Russell called the meeting to order at 7:30 p.m., and stated that two regular members are absent this evening. Mr. Garvin requested that Mr. Kelsey vote for him in his absence and Mr. Bernblum requested that Mr. Burrows vote for him in his absence. There is no vote necessary.
Board of Finance Chairperson Election
Mr. Russell asked for nominations for Chairman of the Board of Finance.
A motion was made by Mrs. Sturges, seconded by Mr. Kelsey to re-elect Mr. Russell as Chairman of the Board of Finance. There were no other nominations. Motion carried unanimously.
Cohn Reznick – Annual Financial Report Year End June 30, 2016
Mr. Centofanti reviewed highlights of the Town’s June 30, 2016 audit results. He described the strict governmental standards that must be followed for municipal audits. Budgetary fund balance increased by $1,340,422 and increased by $1,419,860 on GAAP basis. The unassigned fund balance as a percentage of expenditures has increased from 20.4% to 23.3%. GASB 72 related to new investment disclosures was effective and had no impact on Town based upon types of investments. The General Fund Schedule of Net Taxpayer Cost of Services by Function was reviewed.
Board of Finance Meeting December 20, 2016
There was a discussion regarding the tax collections and Town Clerk collections being deposited into the general fund operating bank account rather than being deposited into separate bank accounts managed by their respective departments. In each department, there is one individual responsible for making the deposits, writing and signing the checks (including tax refunds) and reconciling their monthly bank statements. Although the Finance Director reviews bank activity, the present practice will shift to processing and disbursements through the Finance department to have proper control over cash receipts, proper control over cash disbursements, increased efficiency, and better cash management.
There was a discussion regarding a formal procedure for disaster recovery plan. Without a formal, comprehensive disaster recovery plan, the Town might not be able to recover its EDP capabilities in a timely manner in the event of a data center catastrophe.
Other areas of recommendations to management included Investment Police, Computer System Security, Accounting Policy and Procedures, Bidding Policy. Following the prior year’s recommendations the Town developed a Code of Conduct/Fraud policy that addresses the Town’s position regarding fraud, defining fraudulent acts and the Town’s course of action if fraud is committed. The Town has implemented procedures to properly record capital asset activity. The Town has implemented a policy for the documentation, approval, and posting of all nonstandard journal entries.
Old Business
Academy Lane Fire Dock: Mrs. Reemsnyder introduced Keith Neilson from Docko, Inc. She explained that the Academy Lane Fire Dock construction proposal is $187,171 and $17,500 for construction administration by Docko. A recommended 20% contingency, or $40,934.20, and $12,300 already paid on construction administration, brings total to of $233,305.20. Mrs. Reemsnyder reported that there is $28,442 remaining in the FY13/14 carryover and $125,000 remaining in the FY16/17 carryover. Total remaining in funds is $153,442 and, when adding a 20% contingency, the amount for approval at Town Meeting on January 23, 2017 is $79,863.20.
Mr. Neilson presented the stability of the underlying soil. He explained that Geotechnical Engineers, Dr. 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. In Dr. Welti’s report, it was 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 he 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 will be removed and replaced by new processed gravel base materials. The traffic surface will be crushed stone. The sheets will be left high to form a containment wall for firefighting apparatus access. The proposed wharf reconstruction has a cast-in-place reinforced slab supported atop precast concrete blocks. The design should address static and dynamic forces from the river and loads associated with fire truck tankers.
Board of Finance Meeting December 20, 2016
The blocks along each side of the wharf would provide lateral support of the interior fill material and would transfer compression loading from the slab to the underlying soils. Steel sheeting will have to be pounded in on three sides in order to further prevent the unstable soil from allowing the dock to sink.
There was discussion on the longevity expected with the steel sheeting and brackish waters. Mr. Neilson outlined a few local projects (New London and Mystic) that Docko constructed using this method of steel sheeting that are still in excellent condition 14 and 20 years later.
Mr. Angus questioned the height of the bulkhead and if his property is being considered in this project. Mr. Schellens stated that he presented a preliminary design of an alternative concept to utilize the existing stone foundation of the old Ferry Road Bridge which sits on Town property at the intersection of Ferry Road and Route 156. Mr. Risom commented that he spoke with Mr. Schellens a year or so ago regarding his proposal. Mr. Risom stated that bulkheads are more cost effective and are still being used whereas hydrants aren’t. He stated that Mr. Schellens’ proposal is a more complicated and expensive approach than the bulkhead concept.
A motion was made by Mr. Kerr, seconded Mr. Kelsey, to recommend $110,000 to Town Meeting for the Academy Lane Fire Dock project. Motion carried.
Facilities Update: Mr. Parcak proposed a replacement of 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.
Repair work being done at the fire houses, such as a boiler replacement, and the Senior Center roof replacement, are being pushed out another year. 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 a 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. Mr. Burrows asked about having a five year plan.
LED Lighting: Mrs. Reemsnyder stated that the committee, comprised of her, a Board of Finance representative, and Town Treasurer, Tim Griswold has been working with Tanko Lighting regarding the LED streetlight Conversion. Mrs. Reemsnyder summarized the streetlight program transitioning to LED lights in town and stated that $5,000 is in the carry-over budget from the past fiscal year. The town owns approximately 396 lights on town-owned and state roads. The cost to switch over to LED’s would be $115,114 including having an audit of existing light locations which cost $7,128.
Board of Finance Meeting December 20, 2016
The $7,128 would be applied to the cost of the program should the town move forward with the transition to LED lights. Mrs. Reemsnyder stated that the original proposal of $115,114, less the audit program of $7,128, leaves the project at $107,986. A 20% contingency of $21,597.20 is recommended in case of arm replacement, extra lights, if identified, changes in wattage, etc., bringing the total project with a 20% contingency to $129,583.20.
A motion was made by Mr. Kelsey, seconded by Mr. Kerr to recommend $130,000 for LED Lighting to Town Meeting in January. Motion carried.
Boathouse Hains Park Improvement Project: Mrs. Reemsnyder stated that the building is up, the roof is complete and the siding is being installed. Change order #10 for $2,161.62 was approved last evening at the Boathouse Committee’s meeting. Eversource is requiring installation of a vault for electricity due to the amount of wiring on the pole. Public Works will assist Eversource on the day of install which reduced the cost by over $2,000. The boat racks are being installed next and the fence will be removed. The anticipated completion date, including surrounding lawn seeding, etc. is early spring 2017.
Mr. Griswold distributed Hains Park Boathouse Budget sheets and outlined the architect’s invoices and the project’s spent and unspent funds to date. It was noted that there is $33,998 left unspent for the Bathhouse and Pavilion projects.
WPCA Update: Mrs. Reemsnyder reported that Woodard and Curran has submitted the final report to DEEP and is awaiting response. Woodard & Curran also submitted a revised scope of work for $14,878.90 for well evaluation which is also with DEEP for approval.
Review of Monthly Financial Reports
November 2016 Report: Mrs. Stajduhar outlined the November 2016 Financial Report Notes. Under Revenues, the Property tax, total tax collections were $221,252, with 44.8% left to be collected. Investment Interest (18 month CD) has already hit interest income targets for the year.
Other Funds: Miscellaneous – Hains Park Improvement received $8,325 in November, totaling $13,525 in contributions to date restricted for items outside the scope of the original project (gazebo, benches, etc.).
Expenditures were reviewed which included Town Hall Repairs/Maintenance of $5,639 paid to Benedetto for replacement/installation of variable speed circulator pump. Under Special Deductions, unemployment continues to be paid for former Sanitarian up until $7,400 as well as for Social Services Director with a maximum of $5,200. Open Space paid out $4,500 to Silverstein Appraisal for six parcels (four on Whippoorwill Road and two on Boston Post Road). Although the line item is over, the department in total should not be at year end per the Open Space Commission Chairperson. Public Works tree trimming line is over budget due to increased number of trees that need removing as a result of drought damage (per Tree Commission Chairperson). The Tree Commission budget is only used for tree trimming.
Police Trooper July through September 30th invoices were paid to the state for overtime $7,000 (50% through budget) and DUI $8,000, $3,000 over budget with more expected.
Board of Finance Meeting December 20, 2016
Under Capital, $4,800 of expenses spent on Millstone drill and $2,500 paid to Sound Computers for new laptops/monitors for the Emergency Operating Center and reimbursable by the Millstone Grant Program.
The percentage of general government budget spent to date (without Capital or RSD#18 included) is 43.8%, Onetime costs not yet expended include half of stipends in the amount of $209,350 and $230,000 in Transfers out.
Other Funds include the Hains Park Boathouse - $3,010 spent for storage trailer, engineering, and architect and Sound View Construction - $7,822 spent for WMC, Consultant Engineers.
New Business
NorthEast Corridor/Federal Railroad Administration (NEC/FRA): (possible funding needed/fundraising): Mrs. Reemsnyder stated that the FRA tier 1 report has been released. The path going through the town is still on the table. Mrs. Reemsnyder stated that the Town attorney, Jack Collins, has been working on various aspects, such as historic preservation, economic impact, and alternative plans in order to counter the decision should it not be a favorable one for Southeastern CT.
Attorney Collins explained that if this gets to the point of litigation, it will be extremely costly and not one that the town can solely afford. There was extensive discussion regarding establishing a fund to be used towards expenses to fight the FRA’s pending decision. Mrs. Reemsnyder and Attorney Collins spoke about the terms that can establish a fund that will be used for the efforts. Legal representation, hiring a consultant and a lobbyist were also discussed.
Atty. Collins stated that at this time, funds received would most likely go for consultants to support local issues, rather than for attorney expenses. There was an extensive discussion about various fundraising efforts and what should be the timing of those efforts.
2017 Meeting Schedule
The Meeting Schedule for 2017 Board of Finance was distributed.
A motion was made by Mr. Kerr, seconded by Mr. Woolley to approve the 2017 Meeting Schedule as presented. Motion carried.
Board of Finance Meeting December 20, 2016
Selectman’s Report
Sennheiser: The new mics have been installed and are working out very well. Mrs. Reemsnyder stated that the new system will be very helpful for future meetings especially when the room is at capacity.
Route 156 Bikeway/Sound View Improvements Project: Mrs. Reemsnyder reported that one sidewalk was installed from Pond Avenue to just north of the Town parking lot. Drainage basins were installed from Pond Road to Martino Road. The project has halted for the winter until March.
Ledge Light Health District: Mrs. Reemsnyder reported that there was a meeting held between Ledge Light Health District officials and the Town’s Land Use departments. The meeting was very positive and cleared up many unanswered questions. Ledge Light is working with the Building and Zoning departments to look at online permitting to streamline the process and improve customer service. One program looked at is user-friendly and provides excellent feedback to applicants. Mrs. Reemsnyder will provide more information as this process progresses.
Electricity Agreement: Mrs. Reemsnyder stated that the electrical contract which is set at .0858/kwh expires on June 30, 2017. She reported that the new 29 month contract is set at .0759/kwh, which is a significant savings.
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, January 17, 2017 at 7:30 p.m.
A motion was made by Mrs. Sturges, seconded by Mr. Kelsey to adjourn the meeting at 10:35 p.m. Motion carried.
Respectfully Submitted,
Michele E. Hayes
Secretary
| 
