MINUTES
BOARD OF FINANCE
DECEMBER 17, 2002
A REGULAR MEETING of the Board of Finance was held on Tuesday, December 17, 2002, in the Council Chambers.
In attendance was Mayor Owen J. Quinn, Jr., members of the Board of Finance Theodore Miasek, Carl Michelet, Diane Libby, Roger Dickinson, and Bruce Cornish, along with Corp. Counsel Albert Vasko, and Comptroller Alice Proulx. Absent was Board of Finance member Michael Nejaime.
Mayor Quinn called the meeting to order at 4:10 p.m.
MINUTES #050
On a motion by Mr. Miasek, seconded by Mrs. Libby, the board voted unanimously to approve the minutes of the informational meeting on Charter Revision held 9/30/02.
On a motion by Mrs. Libby, seconded by Mr. Miasek, the board voted unanimously to approve the minutes of the regular meeting held 11/19/02.
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to approve the minutes of the special joint meeting with the Board of Education held 11/19/02.
OPEN TO THE PUBLIC #090
On a motion by Mrs. Libby, seconded by Mr. Michelet, the board voted unanimously to open the meeting to the public.
Hans Reichardt, 52 Cook Street, a Board of Education member, spoke in regard to the proposed payment of $15,890.33 to Bismark Construction Company for change orders at the Southwest School. He first reported his involvement in May, when the Board of Education failed to discuss a letter they received from the PTO listing items that needed to be addressed by the contractor. He noted that he had taken it upon himself to visit the school and, in doing so, found additional items that needed attention that could be added to the list presented by the PTO.
He reviewed the items with the Board of Finance.
He urged the board to take another look at these issues prior to approving the payment to Bismark Construction Company on this agenda. He indicated that Torrington left very little money in escrow, which was very uncommon is his business.
BISMARK CONSTRUCTION CO. #370
On a motion by Mrs. Libby, seconded by Mr. Michelet, a discussion took place in regard to the Council’s request for the payment of $15,890.33 from Contingency to Bismark Construction Company to resolve all change order issues related to Southwest School.
Corp. Counsel Vasko stated that Bismark had approximately $50,000.00 in change orders and an agreement was made to compromise some of those change orders and pay Bismark this amount of money. The city was still withholding a retainer to resolve additional items that needed to be addressed at the school.
A discussion took place on how much a retainer is kept and how it gets paid off.
Mayor Quinn pointed out that the $15,890.33 was signed off by the building committee and the attorneys as being the amount due and payable for work that was completed to the satisfaction of Ed Arum and Eugene Farley. He agreed with Mr. Michelet that outstanding issues in contracting, retainers, and future work needed to be addressed, however, these issues should be more appropriately funneled through the Board of Education and the City Council. He re-directed Mr. Reichardt back to the Board of Education with his issues.
Mr. Dickinson inquired whether it was appropriate to ask the Building Committee for anticipated expenses beyond this $15,890.33 payment that may or may not be covered by bonding, and the current retainer left on the school project.
Mayor Quinn indicated that he could obtain that information for the Board of Finance.
Mayor Quinn informed the board that additional costs associated with Southwest School will come forward for payment as a liability for Torrington in the future.
VOTE #970
Mrs. Libby made a motion to accept the Council’s request for the payment of $15,890.33 from Contingency to Bismark Construction Company to resolve all change order issues related to Southwest School. Mr. Dickinson seconded the motion. Mrs. Libby, Mr. Dickinson, and Mr. Cornish voted in favor of the motion, Mr. Miasek and Mr. Michelet opposed. On a 3-2 vote, the motion passed.
BUSINESS IN SECTION B #990
On a motion by Mrs. Libby, seconded by Mr. Michelet, the board voted unanimously to consider business in Section B.
TORRINGTON POLICE DEPARTMENT #1000
On a motion by Mr. Michelet, seconded by Mr. Dickinson, the board voted unanimously to approve the Council’s request for the payment of $271.66 from the Sanitary Sewer Capital Improvement Fund #490 to the Torrington Police Department in regard to the sanitary sewer repairs at High Street and Litchfield Street.
REIMBURSEMENT OF SEWER CONNECTION FEE #1010
On a motion by Mr. Cornish, seconded by Mr. Michelet, the board, with the exception of Mr. Dickinson who abstained, voted to approve the Council’s request for the reimbursement of a $2,500.00 sewer connection fee from the Sanitary Sewer Capital Improvement Fund #490 and waive any future sewer construction assessment fee to Charles and Gail Olsen,191 Homestead Road, if the existing sanitary sewer line is extended from Pondside Lane to Homestead Road in exchange for a temporary construction easement and a permanent sanitary sewer easement through their property.
THYSSENKRUPP ELEVATOR #1050
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to approve the Council’s request for the payment of $4,460.00 from Contingency to ThyssenKrupp Elevator to completely replace the elevator doors in City Hall with new stainless steel doors.
TORRINGFORD SCHOOL BUILDING COMMITTEE’S BUDGET #1060
On a motion by Mrs. Libby, seconded by Mr. Michelet, the board voted unanimously to accept the budget presented by the Torringford School Building Committee, per the Board of Finance’s request on October 15, 2002.
This was the end of Section B.
SCULLY & WOLF #1080
On a motion by Mrs. Libby, seconded by Mr. Miasek, the board voted unanimously to discuss the update on Scully & Wolf.
Ms. Proulx noted that she and Scully & Wolf had met with the Board of Education in regard to shared services and Mr. Murphy had brought some of his staff to review New World systems. Scully & Wolf was attempting to have New World present different modules to the Board of Education.
Mayor Quinn reported having attended a Board of Education budget committee meeting to talk about shared services and impress upon them that shared services was a priority with the present administration and that the Board of Finance was willing to finance such a joint venture, even to the point where they would pay for New World to create customized reports for the Board of Education to file with the State Department of Education.
Mayor Quinn reviewed an anticipated time frame with the Board of Education’s budget committee which consisted of financial, payroll, account receivables and payables joint system by the last quarter of 2003 and independently operated by January 2004, and was pleasantly surprised that the subcommittee felt they could be on board and could participate much sooner.
The bottom line was that he did not find his wishes and those of the Board of Finance to be in direct conflict with the Board of Education, nor did he find any resistance by the subcommittee. The Board of Education’s concern was the fact that New World had been untried in municipal and Board of Education functions. Mayor Quinn assured them that their annual report (the ED01), was the only area Scully & Wolf felt they may have difficulty with and that they would be willing to work on a customized reporting format that would satisfy the State Department of Education’s requirement to file that report.
Mayor Quinn stated that he would continue to articulate his position with the Superintendent, the entire Board of Education and all its subcommittees so that everyone understands his priorities, as well as the Board of Finance’s priorities.
As mentioned by the Comptroller, Hugh Murphy had attended meetings initiated by Mayor Quinw in an attempt to get him involved with vehicle replacement / vehicle policies, as a precursor to the Board of Education’s getting on board. Mr. Murphy had spent a great deal of time meeting with Mayor Quinn, the Comptroller and department heads’ on the city side, and he understood that this was the direction the Mayor intended to pursue. Mr. Murphy had been participating on a regular basis with these new initiatives.
Both Mr. Miasek and Mr. Michelet pointed out they were behind schedule to implement these changes.
Mrs. Libby stated that the biggest issue was to change the Chart of Accounts on both sides in order to bring them together, and that they couldn’t move forward without the Board of Education’s agreement.
Mr. Miasek pointed out that there was no such software presently available to produce the ED01 report and that it would benefit the Board of Education to have an up-to-date, Windows-based module.
Mayor Quinn noted that Scully & Wolf had met with members of the Board of Education on several occasions to discuss the evaluation of shared services. He agreed with Mrs. Libby that shared services would not move forward unless everyone city-wide bought into it and he would provide the stewardship to get it done because he believed in it and because he felt it was necessary due to the financial direction the State of Connecticut left the city with.
UPDATE THE BUDGET PROCESS #1700
DISCUSS DRAFT POLICY FOR BUDGET SUBMISSION
Based upon whether the budget should be submitted in one or two parts and the issues they were faced with during the past year, Mr. Miasek felt a policy should be drafted to reiterate exactly what’s in the Charter in regard to the submission of the budget. He noted that the Charter clearly stated that the budget should be submitted in two parts, one operating and one capital.
In order to formalize that, Mr. Miasek pointed out that Mr. Cornish had taken the initiative to draft such a policy that included the requirement that the budget be submitted in two such parts. Corp. Counsel Vasko looked at the draft and reported that the language was appropriate. Mr. Miasek proposed issuing this policy in regard to the upcoming 2003 - 04 budget.
Mr. Miasek described capital as a purchase or an improvement to a fixed asset, whether it was real or personal, and the operational as the running of a department as opposed to the improvement, building, or acquiring of fixed assets. It was his belief that guidelines were being drawn up in terms of what they were going to expense and depreciate. Those guidelines would determine the capital and the operational budgets.
Mrs. Libby inquired whether Mr. Miasek would deem the vehicle replacement fund to be part of the capital budget. She asked Corp. Counsel Vasko to explain the different provisions within the Charter in terms of how a referendum on a budget could come about.
Atty. Vasko stated that the Charter had provisions for two potential referendums. One was on the entire budget, which was merely advisory; the other, under Section B of the budget for capital improvements, would be binding.
Mr. Miasek pointed out that the Board of Finance wasn’t presented with a capital budget on the city side. Therefore, there was no exposure to a referendum.
Mrs. Libby stated that everyone needed to be aware that such a policy could open them up to potential referendums on capital issues.
Mr. Cornish stated that perhaps the need for a written policy may have expired.
Mayor Quinn didn’t want to make the budget process any more difficult than it needed to be in tough fiscal times and thought the board should take more time to totally digest the possible ramifications of such a policy.
Mr. Cornish thought the policy may be an unnecessary document at this point in time.
Mr. Miasek inquired whether any further discussion had taken place in regard to the $219,000.00 budget difference with the Board of Education.
Mayor Quinn indicated that the Board of Education had written him a letter asking for that issue to be rectified, however, questions needed to be answered first. He would be writing to the Chairperson of the Board of Education asking specifically for those answers and he would make certain it was placed on the next agenda.
Mrs. Libby indicated that she had received a report from Mr. Murphy, but she needed additional time to see if it contained the information she was specifically looking for.
In lieu of this discussion, Mr. Miasek withdrew his need to discuss the draft policy.
No motion was taken.
REVIEW CONTINGENCY ACCOUNT #2130
On a motion by Mrs. Libby, seconded by Mr. Cornish, a review of the contingency account took place. (Requested by Mrs. Libby on 11/19/02.)
It was noted that Contingency began with $300,000.00 and will have $163,000.00 after today, halfway through the year. It was her belief that they were in a position to be concerned.
Mayor Quinn noted that Torrington and its neighboring towns had put together an excellent presentation before FEMA and complied with all the necessary paperwork in order to get possible reimbursement from the state for the recent ice storm. The situation looked bleak at first, however, since Litchfield and Hartford Counties had joined forces, the federal government had begun to take notice.
Mayor Quinn informed the Board that the City Council was very cognizant of each and every time they used funds from the contingency fund.
BUSINESS: MAYOR & MEMBERS #2440
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. Cornish asked Mayor Quinn and Alice Proulx if they were aware of any red flags they should know about, other than the impact of the ice storm and the state’s proposed cut backs.
Ms. Proulx noted that she wasn’t aware of anything out of the ordinary. She noted that they will have to look at things more closely once they found out what the Governor was going to do.
Mayor Quinn noted that we would have to wait for the special session in order to get concrete numbers from the state and the city wouldn’t take hard action until then.
Mr. Miasek pointed out that the court would soon have a decision on the Anthem stock and inquired whether Mayor Quinn had ever received a list from the Council on how to best spend these funds in terms of one-time projects.
Given the fiscal realities of this budget year and the upcoming year within the city as well as the state, Mayor Quinn refused to call a list of priorities of projects from the City Council as a “wish list”.
Mrs. Libby indicated that she had suggested getting a list from the Council since she felt it was important to open the lines of communication between the Council and the Board of Finance and to hear their ideas on how and where that money should be spent.
Mr. Michelet informed the board that he had just attended his second meeting in regard to vehicle replacement and the new procedure was nearing implementation. The intent was to place the interest and auction funds into a contingency fund that could only be used if the Council and this board approved its utilization.
ADJOURNMENT #3140
On a motion by Mrs. Libby, seconded by Mr. Miasek, the board voted unanimously to adjourn at 5:30 p.m.
ATTEST: JOSEPH L. QUARTIERO, CCTC, CMC
CITY CLERK
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