MINUTES
BOARD OF FINANCE
SEPTEMBER 17, 2002
A REGULAR MEETING of the Board of Finance was held on Tuesday, September 17, 2002, in the Council Chambers.
Present were Mayor Owen J. Quinn, Jr., members of the Board of Finance Theodore Miasek, Carl Michelet, Michael Nejaime, Diane Libby, Roger Dickinson, and Bruce Cornish, Corporation Counsel Albert Vasko and Comptroller Alice Proulx.
Mayor Quinn called the meeting to order at 4:05 p.m.
MINUTES #010
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted to approve, with the exception of Mr. Nejaime who abstained, the minutes of the regular meeting held 8/20/02.
OPEN TO THE PUBLIC #025
On a motion by Mr. Nejaime, seconded by Mr. Michelet, the board voted unanimously to open the meeting to the public. No one spoke.
BOARD OF ED BUDGET FIGURES #035
On a motion by Mr. Nejaime, seconded by Mr. Dickinson, the board voted 4-2 to table the discussion/vote on the Board of Education’s capital and operational budget figures for fiscal year 2002/2003, per Board of Finance recommendation of 7/16/02. Mr. Miasek and Mr. Michelet opposed.
SCULLY & WOLF #070
On a motion by Mr. Michelet, seconded by Mr. Nejaime, the board voted unanimously to discuss the update with Scully & Wolf.
Ms. Proulx noted that Mike LeBlanc had reviewed the processes at the Board of Education and Bill Hoffman had discussed computer issues with Scully & Wolf and would have a report for the board on shared services by the end of September.
TAX COLLECTOR’S CONTRACT #200
On a motion by Mrs. Libby, seconded by Mr. Cornish, a brief discussion took place in regard to the update on the review points for the Tax Collector’s contract - pg 2.
Because Mr. Crovo was not present, Mr. Nejaime made a motion to table the update on the review points for the Tax Collector’s contract - page 2. Mr. Dickinson seconded the motion. Unanimous.
BUDGET PROCESS #250
Mayor Quinn said a meeting would be scheduled to discuss the Kaisan Training Program and information received from CCM on other budget processes.
Ms. Proulx indicated that she would be attending an eight-week course which would include different ways to approach the budget process.
Mayor Quinn said he asked Mrs. Libby, Mr. Nejaime, Mrs. Chadwick, and Mr. Lyons to meet on Thursday to review last year’s budget process, outline next year’s budget process, and address other matters as well.
Mr. Dickinson noted that the budget subcommittee would have a report by the next Board of Finance meeting.
NEW ACCOUNT: INLAND WETLAND #375
A discussion took place with regard to the request to authorize a new account to receive payment for penalties against Inland Wetlands to fund supplies used in performing wetland restoration / maintenance work. (Tabled on 8/20/02)
Ms. Proulx explained how this request was similar to the street lights account.
The board expressed a concern that this procedure would not be gross to gross.
VOTE TO OPPOSE REQUEST #790
On a motion by Mr. Nejaime, seconded by Mr. Dickinson, the board voted unanimously to oppose the request for a new account to receive payment for penalties against Inland Wetlands to fund supplies used in performing wetland restoration / maintenance work.
Mrs. Libby stated the board should probably discuss the street restoration account during the next meeting. #630
Mr. Nejaime indicated that contractors should be obligated to repair any situation that results in a fine at their cost, and the fine should be above and beyond the costs to repair.
Atty. Vasko indicated that a contractor must post a bond in order to do a street opening, so they would either fix the road or forfeit the bond. The penalties are over and above the costs to repair.
Mr. Nejaime requested Atty. Vasko to find out if the same process would apply to an Inland Wetlands project that was fined.
Because the motion to open a new account was denied, Inland Wetlands’ only recourse for the unbudgeted expenditure would be to use Contingency funds.
FIRE DEPARTMENT AIR CONDITIONER #820
The matter in regard to prior year funds in the Fire Department budget for air conditioner repairs was sent back to the Board of Public Safety. No action taken.
GUIDELINES FOR CAPITAL PROJECTS #840
On a motion by Mr. Michelet, seconded by Mr. Dickinson, a discussion took place on the draft prepared by Ms. Proulx on guidelines for capital projects.
Number 1, “Projects for which there is no purchase order nor a signed contract would be eligible,” meant that funds set aside for a specific project could not be used for anything else.
Capital projects included items such as replacing a roof, a phone system, etc.
Mr. Michelet thought it was important to define a capital project.
Ms. Proulx said she could get the exact definition from her blue book.
Mr. Michelet inquired whether GASB34 had any terminology in regard to capital projects that we should be aware of.
Ms. Proulx said she would look into it.
Mr. Miasek said they should keep in mind the fact that they raised the threshold for expenses versus capitalization. ($1,000.00 for the inventory and $2,500.00 for fixed assets.)
Mr. Cornish suggested establishing a time frame for funds not expended. If they didn’t actually have an order within 4, 5, or 6 years, the funds ought to revert back to the general fund. The state standard is six years.
Mayor Quinn asked the board if six years was too long. #1110
Mr. Miasek felt three years was more than enough time.
Mayor Quinn suggested continuing their policy to re-evaluate projects on an annual basis and determine whether it should be allowed to be carried over.
Mr. Nejaime felt the projects should be made to start from scratch, if, after four years, the project hasn’t already been accomplished.
Mr. Michelet felt the town shouldn’t have a problem with doing a project in six years.
Mr. Cornish agreed with Mr. Nejaime to have projects come back after a four-year period as a new request rather than setting it aside at the discretion of the department head.
Mayor Quinn and Ms. Proulx review all encumbrances over x dollars and capital projects which have not been expended on an annual basis, for the city.
Mr. Nejaime thought perhaps they needed to go before the Board of Finance.
Mr. Michelet said “I don’t know if we want to get that detailed. If we put it in that they have to be reviewed, after a period of time of x years, one year, two years, three years, have to be reviewed, and then at that point, capital projects of x dollars, something significant have to get re-approved by the Board of Finance, but I only want to do x dollars, half a million dollars, a million dollars, something like that, but I don’t want to get involved with..........sentence unfinished.”
Mayor Quinn didn’t think they would want to go to each board and agency either.
Mr. Michelet was comfortable with a three-year time frame.
Mayor Quinn pointed out that department heads had been asked to re-evaluate their projects at the end of the fiscal year.
Mr. Miasek thought the thresholds should be met by project rather than by piece.
Mr. Dickinson suggested using the GASB list for defining capital projects and stating so in the guidelines to eliminate any definition problem.
The board agreed that one set of Guidelines for Capital Project Funds should be adopted for the City, as well as the Board of Education.
Ms. Proulx would update her draft to include:
1. Update for city as well as the Board of Education.
2. Definition of Capital Projects in reference to GASB.
3. Three year time frame.
ANTHEM B/C B/S FUNDS #1400
On a motion by Mrs. Libby, seconded by Mr. Nejaime, discussion took place in regard to the $600,000.00 Anthem B/C B/S funds, per Mr. Nejaime’s request.
Mrs. Libby stated that the Board of Finance would have to be apprized of any potential litigation and make certain the funds were clear. She felt the City Council should prepare a prioritized list of items they felt was important for the City.
The Board noted that the statute of limitation was probably two years however, they assumed any potential litigation would be known within a year.
Mr. Michelet suggested tabling the matter until December 2003.
Mrs. Libby said she would like the City Council put together a punch list on how they would like to spend this money.
Mr. Nejaime said they needed to start formulating a game plan.
Mayor Quinn noted that the funds were presently in General Fund and would remain there until there’s a direct purpose, and he would like to come up with some ideas along with various boards and agencies. He agreed that they should have a
well-thought out plan that made sense.
Mr. Dickinson agreed that it would make sense to have the City Council make the recommendations.
Mrs. Libby made a motion to have Mayor Quinn talk to the City Council about preparing a punch list that they could present to the Board of Finance regarding the spending of the $600,000.00 (Anthem BC/BS) by December 1, 2002. Mr. Nejaime seconded the motion. Unanimous.
BUDGET TRANSFERS #1630
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request to approve budget transfers for fiscal year ending June 30, 2002, with the exception of 0010-0011-5100-0000. (Please refer to #1710 for exception approval.)
SCOTTSDALE INS. CO. #1680
On a motion by Mrs. Libby, seconded by Mr. Miasek, the board voted unanimously to accept the Council’s request to authorize the payment of $1,355.67 from Contingency to Scottsdale Insurance Co. for the deductibles in the Schapp, Carpenter, and Zavatkay matters.
CONSIDER BUSINESS IN SECTION B #1700
On a motion by Mr. Michelet, seconded by Mr. Dickinson, the board voted unanimously to consider business in Section B.
BUDGET TRANSFER #1710
On a motion by Mrs. Libby, seconded by Mr. Nejaime, the board voted unanimously to accept the Council’s request to approve the budget transfer for line item 0010- 0011-5100-0000 for fiscal year ending June 30, 2002.
TRUMBULL CONST. CO. #1720
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted to accept, with the exception of Mr. Michelet and Mr. Cornish who abstained, the Council’s request for the payment of $153,921.85 from Sanitary Sewer Capital Improvement Fund #490 to Trumbull Construction Co., Inc. for sanitary sewer improvements to Oakbrook Lane, West Horace Street and Perkins Street.
CARDINAL ENGINEERING #1780
On a motion by Mr. Nejaime, seconded by Mrs. Libby, the board voted unanimously to authorize the payments of $12,063.87 and $11,804.38 from Sanitary Sewer Capital Improvement Fund #490 to Cardinal Engineering, Inc. for sewer design and inspection services in regard to the Highland Avenue and West Horace Street project.
GORDON, MUIR & FOLEY #1810
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request for the payment of $2,805.00 from Contingency to Gordon, Muir & Foley, LLP for professional services rendered re: Torrington Middle School roof problem.
BUSINESS BY MAYOR AND MEMBERS #1840
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to consider business presented by Mayor Quinn and members of the Board of Finance.
Mr. Michelet requested adding to the next agenda a discussion on investment interest and how it’s allocated.
Mr. Nejaime inquired as to why streets were being dug up immediately after they‘ve been re-paved. He also felt the streets should be swept more often.
Mr. Miasek inquired whether they should get an update from the school building committees.
Mr. Nejaime felt the issues should be addressed before warrantees expired.
Corp. Counsel Vasko indicated that he met with the Chairman of the Southwest School Building Committee and was told that the project was basically done.
Mrs. Libby inquired about the resolution to the alleged conflict of interest matter.
Mayor Quinn indicated that he was in the process of re-appointing a Board of Ethics and they would be meeting in the near future in regard to the only real ethics charge, which didn’t include Mrs. Libby. Atty. Vasko had indicated that the Ethics Board could issue an advisory opinion as to whether or not someone was in conflict of interest. Mayor Quinn will turn over to the Board of Ethics the numerous articles that have appeared in the newspapers in regard to this matter.
Mayor Quinn indicated that the Torringford School Building Committee would be asking the City Council for $75,000.00 for seed money.
Mr. Miasek stated that strongly worded contracts giving the city the upper hand, including completion clauses, retainers, etc. should be awarded.
ADJOURNMENT #2480
On a motion by Mr. Miasek, seconded by Mrs. Libby, the board voted unanimously to adjourn at 5:20 p.m.
ATTEST: JOSEPH L. QUARTIERO, CCTC, CMC
CITY CLERK
| 
