MINUTES
BOARD OF FINANCE
AUGUST 19, 2003
A REGULAR MEETING of the Board of Finance was held on Tuesday, August 19, 2003, in the Council Chambers.
Those in attendance included Mayor Owen J. Quinn, Jr., members of the Board of Finance James Zeller, Michael Nejaime, Diane Libby, Roger Dickinson, and Bruce Cornish, Comptroller Alice Proulx, Treasurer Richard J. Friday, Business Services Administrator Hugh Murphy and Principal of Southeast School Michael Orafice.
Mayor Quinn called the meeting to order at 4:05 p.m.
MINUTES #030
On a motion by Mrs. Libby, seconded by Mr. Cornish, the board voted, with the exception of Mr. Nejaime and Mr. Zeller who abstained, to approve the minutes of the regular meeting held July 15, 2003.
OPEN TO THE PUBLIC #040
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to open the meeting to the public. No one spoke.
Mayor Quinn welcomed James Zeller as the newest member of the Board of Finance.
PURCHASE ORDERS #100
On a motion by Mrs. Libby, seconded by Mr. Cornish, the board voted unanimously to accept the Comptroller’s list of purchase orders for fiscal year 2002-2003 for which there was a project, but no vendor had yet been selected.
TUITION INCOME #200
On a motion by Mrs. Libby, seconded by Mr. Dickinson, discussion took place in regard to allocation of additional tuition income from out of district students.
Mr. Murphy reported that a substantial amount of money had been spent on capital projects at Southeast School and the building was looking good. He also stated that the principal of Southeast School, Michael Orafice, had informed him that there was a demand for additional out of district students that could be taken in at Southeast School on a tuition basis; therefore, they were looking for an arrangement to bring in tuition students but funds would be needed to put a program in place.
Mr. Murphy supplied the board with a copy of the breakdown he had prepared. The idea was to generate funds from out of district schools to help support the program. Mr. Murphy had proposed a 25/75 split, however 25% to the city wouldn’t allow him to continue with projects like replacing gutters unless more students registered. He was hoping to access more than 25% in the first year especially in hopes of making the concept succeed and eventually build up to 25% to the city.
Mrs. Libby inquired whether any money was budgeted from the three students already registered.
Mr. Murphy stated that nothing was budgeted.
Mrs. Libby inquired how they came up with a figure of $16,000.00 for each student that would come into the system.
Mr. Orefice indicated that $16,000.00 was set by the Director of Special Services.
Mr. Murphy indicated that they started with the average per pupil cost and added $600.00 an hour for each hour of special education service, and $300.00 an hour for the second hour and everything above.
Mrs. Libby pointed out that each student would have different needs within the program.
Mrs. Libby inquired about the absenteeism rate.
Mr. Orefice indicated that a significant amount of time was spent trying to fix that problem and that they were probably at a 75% attendance rate, and making gains in that area. Presently, 41 students, 9 through 12, were enrolled, which did not include the four out-of-district students they were expecting.
Mrs. Libby stated that their request for a .6 counselor and .5 teacher seemed considerably high for four additional students.
Mr. Orefice indicated that the .6 counselor and .5 teacher were necessary components whether they had four additional students or not. They had recently been cut down to 6/10 counselor and one full time teacher. He preferred using district money to pay for staffing rather than relying on out-of-district students.
Mr. Dickinson felt a bit awkward approving this request. He inquired whether the Board of Education had already approved this action and exactly what was expected from the Board of Finance.
Mr. Murphy indicated that they were looking for the Board of Finance to approve a revenue sharing split on the additional tuition revenue so they could move forward with their program. Presently, 100% of the revenue comes directly to the city.
Mrs. Libby indicated that this would be additional income not offset by any expenses in their budget at this point in time. She expressed her concern over how it would be logistically done and suggested running it by the city’s Auditors. She felt it was a good initiative in thinking outside of the box, and that it made sense to use a building to its maximum.
Mr. Murphy stated that Dr. Riccio stood firmly behind the concept and that he was attending this meeting at Dr. Riccio’s direction, however, he didn’t know where the Board of Education stood on the issue.
Mr. Nejaime pointed out that any new students would create costs and impact a budget that had already been approved. The Board of Education would have to decide whether they could afford to bring in any out-of-district students. He thought it would be beneficial as long as they made sure they used the funds to cover the expenses first and as long as they realized that, at some point, if the funds went away, the expenses would also go away.
Mr. Murphy indicated that the potential was there to pick up an additional 20 + students, which would create more revenue to do what they needed to do.
Both, Mr. Nejaime and Mr. Dickinson agreed that the Board of Finance couldn’t act on this proposal until the Board of Education approved it.
Mr. Murphy indicated that they wouldn’t need Board of Education approval if it was set up similar to a grant, however, if it changed the bottom line of their budget, they would need to approve it.
Mrs. Libby indicated that they would have the ability, from a financial point of view, to move forward, but she wasn’t certain how to go about it. The dollar amount would have to be specific. She applauded the efforts to make the school more productive and efficient.
Mr. Murphy stated that the Counselor, Teacher and Capital Project line items would be increased.
Mr. Nejaime agreed with Mrs. Libby that it shouldn’t be a problem to increase the budget and offset it by increased revenue in the general fund. He agreed that the building should house as many students as possible and the city should grab the tuition.
Mr. Murphy stated that he had originally suggested a 75 / 25 split, however, Mr. Orefice didn’t believe that would be enough because he would have more program costs than what Mr. Murphy had realized when he suggested the split. Mr. Orefice was thinking more along the line of 100 / 0 split for the first year and gradually become 75 / 25 or some other number.
Mr. Dickinson suggested that the matter be placed on the Board of Education’s agenda for the following day.
Mr. Murphy indicated that the Board of Education had already been briefed about this meeting and were aware that he was bringing this matter before the Board of Finance.
Mayor Quinn stated that the Board of Finance had the ability to amend the budget after the mill rate was set. How the action would take place still needed to be decided upon. He inquired whether they needed the process done prior to August 27.
Mr. Orefice indicated that they needed to know as soon as possible.
Mr. Nejaime said the board agreed they would find a way to do it.
Mrs. Libby indicated that they needed to determine the amount of the split.
Mr. Nejaime said he had no problem with 100 / 0 split for this year if that’s what it took to run the program, with the thought of re-visiting the matter next year.
Mr. Dickinson agreed.
Mrs. Libby hoped Mr. Orefice would up-date this board during the budget process on how the program was working and fill them in on the estimated costs to run the program.
Mr. Nejaime indicated that the Board of Finance had committed themselves to approving the program once it was approved by the Board of Education.
Mayor Quinn reiterated that the Board of Finance would approve it once the Board of Education had given its blessing, and they would be willing to amend the budget to a 100 / 0 split during the first year, to be re-evaluated next year.
Mayor Quinn and members of the board commended Mr. Orefice and Mr. Murphy for fine work.
SCULLY & WOLF #1200
On a motion by Mrs. Libby, seconded by Mr. Dickinson, discussion took place on the status of Scully & Wolf.
Ms. Proulx reported that the Board of Education was currently running on the system with a few minor glitches. They were still running checks in the Comptroller’s Office in anticipation of the completion of the bank testing. Domenic, from Scully & Wolf, had created some of their reports on the Crystal Report Writer and was in the process of creating more. He will be doing some in-house training for employees in the Comptroller’s Office, as well as Board of Education on how to use the Crystal Report Writer.
Mr. Murphy stated that the reports created by Domenic looked fine. He agreed with Ms. Proulx that, for the most part, everything was getting ironed out and progressing.
ST. OF CT. D.O.T. #1260
On a motion by Mr. Nejaime, seconded by Mr. Cornish, the board voted unanimously to accept the Council’s request for the payment of $16,109.00 from Contingency to the State of Connecticut, Department of Transportation as part of outstanding debts owed for the Traffic Signal Project 143-150.
Mr. Cornish pointed out a discrepancy between Officer Shopey’s request and the State’s paperwork in regard to project numbers. (After bringing the matter to Officer Shopey’s attention on September 18, 2003, he reported that his paperwork showed both project numbers: #143-150 and #143-154.)
P & G PEPPER #1420
On a motion by Mrs. Libby, seconded by Mr. Cornish, the board voted unanimously to accept the Council’s request for the payment of $3,158.75 from Sanitary Sewer Capital Improvement Fund #490 to P & G Pepper Construction Services, Inc. for the installation of sanitary and storm sewers on Greenridge Road.
SPECIALTY NATIONAL INS. CO. #1440
On a motion by Mr. Cornish, seconded by Mr. Nejaime, the board voted unanimously to accept the Council’s request for the payment of $1,000.00 from Contingency to Specialty National Insurance Company for the deductible in the Shirley McLeod matter.
GORDON, MUIR & FOLEY #1480
On a motion by Mrs. Libby, seconded by Mr. Nejaime, discussion took place in regard to the Council’s request for the payment of $712.43 from Contingency to Gordon, Muir & Foley, LLP for professional services rendered in the Southwest School matter. (The remaining $3,755.17 will be paid from the Southwest School Building Acct. #110.)
Mayor Quinn reported that Southwest School had ongoing problems in regard to jobs that weren’t finished.
Mr. Friday stated that the payment of $3,755.17 would deplete the Southwest School Building Account.
Mrs. Libby requested the attendance of the chairman of the Building Committee during their next meeting in September to discuss those issues. She also requested something in writing on estimated costs, prior to the meeting.
VOTE #1650
On a motion by Mrs. Libby, seconded by Mr. Nejaime, the board voted unanimously to accept the Council’s request for the payment of $712.43 from Contingency to Gordon, Muir & Foley, LLP for professional services rendered in the Southwest School matter.
GORDON, MUIR & FOLEY #1660
On a motion by Mr. Nejaime, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request for the payment of $8,937.48 from Contingency to Gordon, Muir & Foley, LLP for professional services rendered in the Southwest School matter.
I-DEAL, LLC #1670
On a motion by Mr. Nejaime, seconded by Mrs. Libby, the board voted unanimously to accept the Council’s request for the payment of $1,375.00 from Contingency to I-Deal, LLC for services rendered in the General Obligation Bond, Issue of 2003.
MURDOCK CLAIM MGMT/ HANOVER INS. CO. #1680
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request for the payment of $3,268.38 from Contingency to Murdock Claim Management Co. F/B/O The Hanover Insurance Co. for the deductible in the Williams matter.
DIAMOND STATE INS. CO. #1690
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request for the payment of $161.44 from Contingency to Diamond State Insurance Co. for the deductible in the Hayes matter.
PURCHASE OF WORK STATION #1740
On a motion by Mr. Dickinson, seconded by Mr. Nejaime, discussion took place in regard to the request to use $1,300.00 from Contingency for the purchase of a work station for use in the Treasurer’s Office.
Treasurer Richard J. Friday informed the board that his office would be moving to the first floor next to the Comptroller’s Office in the very near future and, since the room was limited in size, a more compact work station would be useful. He pointed out that the computer in his office was still on a secretary’s desk and that a work station would be more efficient, as well as save space. Mr. Friday added that he had not budgeted any funds for a work station because the move was not anticipated.
Mr. Dickinson pointed out that Seitz Corporation had a number of work stations for sale at next to nothing prices.
VOTE #1830
Mr. Dickinson made a motion to approve up to $400.00 from Contingency for the purchase of a work station for use in the Treasurer’s Office, contingent upon the Council’s approval. Mr. Nejaime seconded the motion. Unanimous.
BUDGET TRANSFERS #1850
On a motion by Mr. Cornish, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request to approve the budget transfers for fiscal year ending June 30, 2003.
MURDOCK CLAIM MGMT CO / HANOVER INS. CO. #1910
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request for the payment of $314.75 from Contingency to Murdock Claim Management Co., F/B/O The Hanover Insurance Co. for the deductible in the Zavatkay matter.
MURDOCK CLAIM MGMT CO / HANOVER INS. CO. #1920
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the board voted unanimously to accept the Council’s request for the payment of $6,330.20 from Contingency to Murdock Claim Management Co., F/B/O The Hanover Insurance Co. for the deductible in the Hepburn matter.
BUS: MAYOR & MEMBERS #1960
On a motion by Mrs. Libby, seconded by Mr. Dickinson, the Board voted unanimously to consider business by Mayor Quinn and members of the Board of Finance.
Mr. Cornish inquired about the revenue shortfall from state funded items totaling approximately $2.6 million.
Ms. Proulx stated that revenues were still pending for capital projects for the board of education.
Mr. Dickinson thanked Mayor Quinn for saving his company $12,000.00 a year in solid waste disposal fees due to the city’s vote to charge haulers for their tipping fees. Since that action would have tripled his cost to dispose of commercial waste, he evaluated his trash and learned that recycling his styrofoam instead of including it with his solid waste would create a tremendous savings.
Mr. Nejaime pointed out that the board had been supplied with a number of job descriptions for Finance Director and asked if there was any projected time for advertising the position.
Mrs. Libby suggested that one or two members from the Board of Finance and the City Council meet as a subcommittee to review the numerous job descriptions in hand and come up with one specifically designed for the City of Torrington.
Mrs. Libby and Mr. Dickinson volunteered to be on that subcommittee.
Mayor Quinn said “As soon as possible, we’ll get that subcommittee. We have at least two people who want to serve on that. We’ll make it happen.”
Mr. Nejaime inquired about Highland Avenue.
Mayor Quinn said he was told “Before the end of August.”
Mrs. Libby stated that she had previously mentioned when the city acted on the commercial waste, that we also needed to look at residential waste. She had asked Mr. Rollett to come up with a plan of action or several options that could be reviewed during the budget year.
Mayor Quinn informed the board that the Solid Waste Committee was examining all solid waste and would be reporting to the Mayor and to the Board of Finance.
Mr. Nejaime agreed that residential waste should be reviewed. He felt it was unacceptable for commercial waste disposal fees to triple in cost and that the residential side should bear some of those costs.
Mrs. Libby pointed out that more businesses should evaluate their trash and learn to recycle, as Mr. Dickinson did.
Mayor Quinn stated that a letter was sent to all city businesses encouraging them to recycle. He also issued a press release and met with members of the Chamber of Commerce, business leaders, and several of the city’s haulers on the matter.
Mayor Quinn furnished the board with a copy of “Torrington, Connecticut, Just Got Better” booklet, and stated that it was a good economic tool.
Mayor Quinn informed the board that he had the opportunity to sit in on a meeting at the Fire Department whereby Mr. Dickinson, Chief Field and Deputy Chief Giampaolo discussed the Kaysan method, and reported that he was impressed with their progress.
ADJOURNMENT #2430
On a motion by Mr. Nejaime, seconded by Mr. Dickinson, the board voted unanimously to adjourn at 5:12 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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