MINUTES
BOARD OF FINANCE
MARCH 17, 2003
A SPECIAL MEETING of the Board of Finance was held on Monday, March 17, 2003, in the Council Chambers.
Present were Mayor Owen J. Quinn, Jr., members of the Board of Finance Theodore Miasek, Michael Nejaime, Diane Libby, Roger Dickinson, and Bruce Cornish, Corp. Counsel Albert Vasko, Comptroller Alice Proulx, Business Services Administrator to the Board of Education Hugh Murphy, Principal of Torringford Elementary School Kathleen Todor, Board of Education member Robert Kelly, and Chairman of the Torringford School Building Committee John Calkins.
Mayor Quinn called the meeting to order at 4:05 p.m.
MINUTES #020
On a motion by Mr. Miasek, seconded by Mr. Dickinson, the board voted unanimously to approve the minutes of the regular meeting held February 18, 2003.
OPEN TO THE PUBLIC #030
On a motion by Mr. Nejaime, seconded by Mr. Dickinson, the board voted unanimously to open the meeting to the public. There was no public participation.
RESOLUTION: TORRINGFORD ELEMENTARY SCHOOL #050
On a motion by Mrs. Libby, seconded by Mr. Nejaime, a discussion took place in regard to the request to adopt a Resolution recommending the appropriation of $25,750,000.00 for the Torringford Elementary School addition, renovation and improvement project.
John Calkins, Chairman of the Torringford Elementary School Building Committee, introduced Brian Solywoda, Architect from Friar Associates, and Maurice Hoben, Construction Manager from O & G.
Brian Solywoda presented a drawing of the floor plan and explained the proposed project.
Mr. Nejaime inquired whether any consideration was given to having two stories in order to reduce costs.
Mr. Solywoda indicated that they had looked at different scenarios. He noted that additional future growth to classroom space could be captured over the storage area.
Mr. Nejaime inquired whether the tunnels were o.k.
Mr. Solywoda indicated that there would be some restoration work done to the bottoms of the slabs to stop the moisture. They would also have to ventilate.
Mr. Dickinson inquired whether the costs were separated between the renovation and the new addition.
Mr. Solywoda indicated that they were. He added that the existing building will be brought up to new condition and will be funded and reimbursed “as new,” just like the addition.
Mr. Miasek asked what would be done differently to prevent the recurrence of roof and mechanical problems presently existing at other schools to make certain we have a good building.
Mr. Solywoda indicated that the city would have a good building, based on his reputation. Although they still needed to go through the process of design, they were certain that proper ventilation would prevent mold problems, and that roofs would not be constructed from metal.
Mr. Nejaime inquired whether they had done value engineering.
Mr. Calkins reminded the board that the committee was still in the concept stage, and that they would not expend any large sums of money for specific engineering, architectural designs, etc. for this project until they received funding approval. It would take about one year to do that type of work if the referendum is approved by the taxpayers.
Mr. Calkins noted that this project was unique in that they were going to build the addition while 600+ students were in session.
Mr. Hoben indicated that the project would begin by building the new addition, which would take about one year, from June of 2004 to August of 2005. The ten portables would be maintained during construction, allowing for ample swing space. The renovation of the existing building will be done in two phases. He estimated the entire project to be complete by June 2006.
Mr. Hoben explained that the project had several expensive components. One is the site. This building will cost more than a typical building this size because they will have to bring in a lot of material to make up for the slope on the side, and they will have to contend with a wetland issue as well. The renovation portion of the building will be more costly than usual because it is a wall bearing, wood frame structure and they will have to be extremely careful with exterior walls. They will have to redo the entire roof and ventilate the existing attic space. All in all, it’s their opinion that the numbers work to renovate the existing portion “as new” and to build the addition and the primary reason is that the city owns the sight. Mr. Hoben explained that
the numbers were pushing the envelope as far as state reimbursement was concerned and the reason for that was mainly because of the amount of site work that needed to be done. He felt that could easily be explained to the state. The total cost of the project is approximately $25.7 million and the net cost to the town, after the state’s 70% reimbursement, will be $7.9 million. Just about everything will be eligible for reimbursement except for some of the gym equipment.
Mr. Calkins explained that the existing building sits on approximately two acres of a twelve acres parcel. A significant amount of land that surrounds this building will be usable. The gymnasium will be regulation size. It will also have a junior soccer field. Traffic issues will be addressed on Torringford West Street to the point where the city may even be able to put “No Parking” on Torringford West Street because there will be so much additional on sight parking for parents as well as for busses. One hundred and fifty parking spaces were being proposed as opposed to the current eighty-seven spaces.
Mrs. Todor indicated that they currently had twenty-five, K through five classrooms. They have an Art and Music classroom and two special education resource rooms. The new building will have 30 classrooms, an art room, a music room, two Special Education rooms, and two (hot?) school rooms.
Mr. Hoben indicated that the sight costs will be approximately $2.4 million. New construction will be $8.8 million, renovation, $5 million. The remainder of the costs will be soft costs, including escalation of about $1 million, change order contingencies of $1 million, CMP’s of $524,000.00, bonding of $307,000.00. Fees, including consultant and technology, telephone system, furniture & equipment, moving expenses, bonding costs by the city, etc., totaled about $5 million.
Mr. Calkins explained that he had received notification from Senator Roraback that a bill had been introduced in the Legislature that said any projects not having had referendum approval by May 1 will be delayed. It didn’t specify how long they would be delayed, or what could potentially happen to them in terms of changing the reimbursement schedules. He noted that the city was most likely faced with a last chance to have Torringford School built under the school construction program that we know today. He felt fortunate to be in position to move forward with a referendum.
Mrs. Libby asked how the contract would stand between the City of Torrington and the Construction Manager, being from O & G, and how that contract might look differently from the one for the Middle School and all the problems the city is presently addressing there. She wanted to make certain from a legal point of view that the city would not run into the same type of problems currently arising at other schools recently constructed.
Mr. Calkins indicated that he, Atty. Vasko, and Mayor Quinn had discussed those concerns and the committee had opted to have a Construction Management Contract that allowed for the contractors to be responsible to the construction manager instead of the city.
Mr. Hoben indicated that the Middle School was under an Agency Construction Management format where all contracts were directly with the city, and the city had to manage all warrantees. O & G’s recommendation was for the city to use the “Construction Management at Risk” format whereby O & G would directly hold all twenty-two contracts and there would be one contract between O & G and the City of Torrington.
Atty. Vasko said the problem with the Middle School was that the city had numerous contracts with different individuals which caused a lot of finger pointing when something went wrong. The proposed concept is almost like having a general contractor except that the city will be doing all the bidding and awarding all the contracts. The contracts will then be assigned to O & G and O & G will manage them for the city.
Mr. Nejaime indicated that the Vogel Wetmore School project had the same kind of construction management contract as the Middle School, however, concerns were addressed directly with O & G and straightened out.
Mr. Hoben noted that O & G was acknowledging the problems at the Middle School. The reason it took so long was because they were not notified. He stated that O & G found out about the roof problems approximately one year after the building was completed, even though the problem existed from day one. He explained that the ridge cap, a new roof profile by Butler, was a very bad design and therefore, leaked. In addition to the ridge cap, they had problems with the valleys in the roof. It took Butler eight years to come up with the right product to fix the problem. They attempted to try a new system two years ago, however, the contractor indicated that it wouldn’t work and they didn’t move forward because it would have only been another temporary fix. Butler finally admitted that it was a bad product and installed a replacement product this past summer. There are no problems with the ridges on the existing building. There are three leaks left in the valleys. (Note: they
haven’t leaked in the past three rainstorms.) There are currently approximately eight leaks in the flat roofs and about twelve windows that leak. When the snow is gone and the weather is warmer, O & G will determine what will be needed to get those twelve windows fixed. The window sills and trim will need to be replaced because most likely there will be mold underneath.
Mr. Hoben noted that they became aware of problems with the HVAC system in the fall and they had been working with mechanical people to repair it. The heating side has been repaired and the air-conditioning side is currently being repaired. The test on the AC will take place in April when they turn it on.
Mr. Hoben assured the board that O & G had not walked away from any issues with any of the buildings that they’ve done.
Mr. Miasek inquired about the retention on the contracts and the life of the warrantees.
Mr. Hoben indicated that state law required a 5% hold back for public schools. The standard warrantee for a building is one year from final completion, however, certain components, like windows, roofs, mechanical equipment, etc. will have longer warrantees.
Mr. Nejaime inquired whether the Building Committee felt they had enough black top area for the amount of students.
Mrs. Todor stated that the question had come up. She added that there was a combination of black top area, a play scape area, and a field that they’ve never had before.
Mr. Solywoda indicated that they still needed to design the project, and, in doing so, would cycle through the entire project once more to make certain everyone’s concerns were addressed.
Mayor Quinn thanked everyone for their time. He commended the committee for moving the project at a quicker pace so it could go to a referendum before May 1. He believed it was a great bargain at the price of $7.9 million and sincerely endorsed the project. He assured the board that O & G and Borghesi had been working a very difficult situation at the Middle School and had been up front with the city in trying to resolve the issues.
Assistant City Clerk Joline LeBlanc read the Resolution.
RESOLUTION OF BOARD OF FINANCE #1570
RESOLVED, that the Board of Finance recommends that the City of Torrington appropriate $25,750,000 for additions, renovations and improvements to Torringford Elementary School to accommodate approximately 710 students including comprehensive renovations and improvements to the existing facility; approximately 47,290 square foot additions providing for gymnasium, cafeteria, music and band, administrative, media center, K-level and first grade classroom and other facilities; parking and circulation improvements including a new bus loop, a separate drop-off /pick-up area and parking area expansion; play area improvements including a new play scape and paved play area; a new junior soccer field; and other project related improvements and work.
FURTHER RESOLVED, that the Board recommends that the City authorize the issue of $25,750,000 bonds or notes and temporary notes to finance said appropriation and hereby approves the issue of such bonds or notes and temporary notes.
MOTION TO ADOPT #1560
Mr. Nejaime made a motion to adopt the Resolution recommending the appropriation of $25,750,000.00 for the Torringford Elementary School addition, renovation and improvement project. Mrs. Libby seconded the motion.
Mrs. Libby said it was her belief that the city would only have to bond for the city’s portion of the funding, and not the full $25 million.
Corp. Counsel Vasko said that was a perception that had come up, however, after speaking with Bond Counsel, he noted that the City still had to appropriate bonds for the entire amount. The city will get paid back by the state on a “go along” basis.
Although there may be a lapse in getting money from the state, it’s supposed to be on an ongoing process as opposed to waiting to the end.
Mr. Calkins added that the city would float temporary notes over the first two years or the scope of the project. The final bond won’t be filed until the project ends. At that point, the state will start reimbursing the city for whatever the bonding costs are for ten to fifteen years on a monthly basis.
Mrs. Libby asked if it had to be done that way, noting that bond rates were really low at this time.
Corp. Counsel Vasko indicated that the city would have a certain amount of time to use the money once the bond issue was done.
VOTE: #1710
On a roll call vote, Mr. Cornish, Mr. Dickinson, Mrs. Libby, Mr. Nejaime, and Mr. Miasek voted unanimously in favor of adopting the Resolution recommending the appropriation of $25,750,000.00 for the Torringford Elementary School addition, renovation and improvement project.
SCULLY & WOLF #1740
On a motion by Mrs. Libby, seconded by Mr. Dickinson, a discussion took place in regard to Scully & Wolf.
Ms. Proulx indicated that she had met with Mike LeBlanc from Scully & Wolf, Bill Hoffman, and Hugh Murphy and they were ready to get the city moving on all aspects of the financial management by July 1, other then the payroll. Both the city and the Board of Education were supplying Scully & Wolf with their Chart of Accounts so they could come up with a new one. Once it is reviewed and approved by both sides, it will be loaded into the financial management system. They hoped to have an accounts payable and a general ledger on the system and running by July 1. Payrolls will be on the system as of January 1, 2004.
Ms. Proulx noted that the city’s conversion would be minimal. The Board of Education may be able to use some of the city’s files, i.e., vendor files. They are going to limit the amount of data which they will convert and archive the rest.
Mr. Miasek asked “How about the Board of Ed and whatever committees are involved in this whole thing, have they all bought into . . . are all of them satisfied?”
Ms. Proulx said it was her understanding that the Board of Education didn’t have any issue with it once they met and discussed it with Mr. Murphy, his assistant, and one member of the Board of Education.
UPDATE - BUDGET PROCESS #1870
On a motion by Mrs. Libby, seconded by Mr. Dickinson, a discussion took place in regard to the update on the budget process.
Mayor Quinn noted that they were ahead of the process as compared to last years. Department heads had been given marching orders, a presentation had been made and everyone understood what was going on, however, it was understood that each individual department head still had further work to do.
For the record, Mrs. Libby said she was the one who started with the zero budget, and her position remained that the city had to be close to zero when they finish the budget process, however, it didn’t mean that every department had to come in with zero. She noted that some departments may need an increase for whatever reason that can be justified, and other departments will have to take a hit to compensate for it.
Mayor Quinn said he thought department heads understood the mission. Their budgets would be given a second look to make certain their logic is on target. It was his belief that everyone had been aggressive and adhered to the dictates given during the first round, but thought that much work still needed to be done.
Ms. Proulx noted that the public hearing for the Board of Education budget was set for May 6, and the public hearing for the city budget was set for May 8, both at 7:00 p.m. in the auditorium.
Mr. Miasek inquired as to where the city would be in terms of encumbrances and surpluses. He wanted to see the impact of the current year’s cuts, in terms of the funding that we’re getting from the state.
Ms. Proulx stated that she was already working with department heads to see what they really needed to purchase, and their encumbrances. She was also looking where we might have revenues beyond what we anticipated we would have as well as where we might be able to reduce this year.
Mrs. Libby temporarily took over as chairman at 5:03 p.m.
TRANSFER WAGES #2140
On a motion by Mr. Nejaime, seconded by Mr. Dickinson, the board voted unanimously to approve the Council’s request to transfer wages budgeted within the Official
Wage increase line item into the Police Department wage line items as follows:
From: Official Wage Increase Line Item #0010.0044.5759.0000
To: Regular Wages #0010.0023.5103.0000 $251,987.00
Overtime #0010.0023.5104.0000 $ 21,367.00
Paid Holidays #0010.0023.5107.0000 $ 14,245.00
Total Transfer $287,599.00
SCOTTSDALE INSURANCE CO. #2160
On a motion by Mr. Nejaime, seconded by Mr. Dickinson, the board voted unanimously to approve the Council’s request to authorize the payment of $1,226.93 from Contingency to Scottsdale Insurance Co. for the deductible in the Carpenter and Zavatkay matters. ($407.90 of a total invoice of $1,634.83 was previously approved for payment by Council on 2/18/2003.)
REINER, REINER, & BENDETT #2170
On a motion by Mr. Dickinson, seconded by Mr. Nejaime, a discussion took place in regard to the request for the payment of “up to $1,538.13" from Contingency to Reiner, Reiner & Bendett for professional services rendered in the D’Andrea Subdivision Land Use matter, contingent upon the City Council’s approval.
Corp. Counsel Vasko indicated that the city had lost its appeal. He explained that Reiner, Reiner & Bendett said they would cap their fee for the appeal at $1,500.00, however, their invoice included the cost of $38.13 to print the briefs, which was rejected by the Council at one point in time.
On a motion by Mr. Dickinson, seconded by Mr. Miasek, the board voted, with the exception of Mrs. Libby who abstained, to approve the payment of $1,538.13 from Contingency to Reiner, Reiner & Bendett for professional services rendered in the D’Andrea Subdivision Land Use matter, contingent upon the City Council’s approval.
CARDINAL ENGINEERING #2230
On a motion by Mr. Dickinson, seconded by Mr. Nejaime, the board voted unanimously to approve the payment of $23,281.88 from Sanitary Sewer Capital Improvement Fund #490 to Cardinal Engineering, Inc. for Phase II study work on the sanitary sewer infiltration / inflow & evaluation study, contingent upon the City Council’s approval.
MURDOCK CLAIM MANAGEMENT CORP. #2240
On a motion by Mr. Dickinson, seconded by Mr. Cornish, the board voted unanimously to approve the payment of $4,347.67 from Contingency to Murdock Claim Management Corporation FBO The Hanover Insurance Company for the deductible in the Williams matter, contingent upon the City Council’s approval.
Mayor Quinn returned at 5:10 p.m.
BUS: MAYOR & MEMBERS #2280
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. Miasek inquired about the $219,000.00.
Mr. Miasek inquired when the joint meeting of the City Council and the Board of Finance would take place. (No date had been set.)
Mrs. Libby indicated that a joint meeting with the Board of Education should also be scheduled.
Mr. Cornish inquired whether it was policy for over expenditures in one line item to be made up from other line items within the same budget.
Ms. Proulx stated that department heads had to stay within the bottom line of their budgets. If they think they are going to go over the bottom line, department heads have a responsibility to talk to the Comptroller to see if funds can be transferred from another department or Contingency in order to cover any overages. Those transfers would have to be approved by the Board of Finance.
Mr. Dickinson noted that he had asked Chief Field to supply the board with information in regard to the cost of the calls that are being made and that he had not received anything as of yet.
Ms. Proulx would give Mr. Dickinson projections for where the departments would be at year ends.
Mr. Dickinson thought the projections for Equipment Maintenance would be interesting.
Mrs. Libby indicated that she pursued the health insurance issue with the Board of Education in terms of determining who should and should not be on the plan. Mr. Murphy indicated that the letters were ready to mail, however, they had not yet been sent.
Ms. Proulx indicated that she had researched the matter with John Calkins, and the city was doing the same thing, 25 year’s old student or not. Negotiation with the unions would be necessary to change it back to the twenty-yearold, full-time student.
Mrs. Libby said “But you go back to the city, the people who had somebody over age 21 on the policy for the city, and get verification that those people can be on the policy.” The Board of Ed should request documentation for verification.
Mayor Quinn thought perhaps they could have John Calkins’ office write a memo on this matter to all people receiving insurance coverage as a standard operating procedure.
Mayor Quinn informed the board that the Comptroller now had a direct link with the Purchasing Agent, providing for greater efficiency between departments. He invited the board to tour the new office complex.
ADJOURNMENT #3370
On a motion by Mr. Nejaime, seconded by Mr. Miasek, the board voted unanimously to adjourn at 5:30 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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