MINUTES
BOARD OF FINANCE
JUNE 19, 2007
A REGULAR MEETING of the Board of Finance was held on Tuesday, June 19, 2007 in the Council Chambers.
Those in attendance included Acting Mayor, Councilor Rick E. Dalla Valle, Board of Finance members Daniel Farley, Bruce Cornish, Thomas Scoville, and James Zeller, Corp. Counsel Ernestine Yuille Weaver, Comptroller Alice Proulx, and Police Chief Robert Milano. Board of Finance members Mark Bushka, and James Nichol were absent.
Councilor Dalla Valle called the meeting to order at 5:02 p.m.
MINUTES #020
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to accept the following:
Minutes of the special joint meeting with the Board of Education held May 8, 2007.
Minutes of the Public Hearing held May 8, 2007 on the School Budget.
Minutes of the Public Hearing held May 10, 2007 on the City Budget.
Minutes of the special joint meeting with the Bd of Councilmen held May 14, 2007.
Minutes of the regular meeting held May 15, 2007.
Minutes of the special meeting held May 15, 2007 to set the mill rate.
OPEN TO THE PUBLIC #060
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to open the meeting to the public. There was no public participation.
ADD LINE ITEM: LEVEE RESTORATION #065
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to authorize Comptroller Alice Proulx to add a line item to the 2007/2008 budget for “levee restoration” work.
New line item - 0010.0031.5816.0034 - LOCIP - Levee Restorations
Increase to Line item 0010.0070.4052.0000 - LOCIP Projects
TRANSFER FROM ANTHEM FUNDS TO GENERAL FUND #125
On a motion by Mr. Cornish, seconded by Mr. Scoville, the board voted unanimously to authorize Comptroller Alice Proulx to transfer approximately $112,000.00 (other than the $250,000.00 designated for the Police Department masonry work, from the Anthem Funds to the General Fund.
MODIFY 2006/2007 BUDGET #180
On a motion by Mr. Zeller, seconded by Mr. Farley, a discussion took place in regard to the request from Comptroller Alice Proulx to modify the 2006/2007 budget as follows: transfer $250,000.00 from Anthem Funds to General Fund.
New Line item 0010.0023.5245.0007 - Police Department - Masonry Work - $250,000.00.
Increase line item 0010.0070.4900.0000 - Transfers In (Anthem Fund #0245) - $250,000.00.
Mr. Cornish asked why Ms. Proulx and Corporation Counsel chose the above modifications in an effort to promote continuity in process, instead of the original Board of Finance request to transfer available balances within the current budget into the masonry expense line.
Comptroller Alice Proulx said that the matter could be done either way, but in an effort to change the budget the way they normally do when they have increases in revenue to offset expenditures, they agreed that it would be the best policy to make the modification on the expenditure and the revenue side. The net effect is the same as if it had been done the other way.
Mr. Cornish said he remains concerned that this is a precedent that allows the Board of Finance to go into what is considered in this particular case, a restricted fund, in order to fund something that’s totally unrelated to the reason the fund was set up in the first place. His concern is the integrity of their bottom line and the precedent it will set for any board to simply reach into the fund balance outside of the budget process to fund initiatives.
Councilor Dalla Valle explained, that when the Anthem money first came to light, the argument was that they could use it to buy down the mill rate. However, that argument was shot down. They said the money should be held for one-time cost projects only and the masonry work falls specifically into that category. He didn’t consider the Anthem money as “the fund balance”, as quoted as the city’s rainy day fund.
Councilor Dalla Valle said “I think that that money was earmarked for one-time, single purchases and single expenditures not to affect the budget and I think that was the read of the Council at the time when the money came in, and that’s why I supported not only this here, but things in the past, to go and spend that money just for those expenditures. So, just as a perspective from the Council, I wanted to put that out, not thinking that that money will be there any time for anything.”
Mr. Cornish said he appreciated and understood that perspective. In going forward, it was his belief that six members of the Board of Finance, along with the Mayor and the administration should continue to respect the fund balance and not treat it as some kind of precedent that allows major programs and projects to be funded without going through the budget process.
Mr. Scoville asked what the Anthem money was used for in the past.
Councilor Dalla Valle said he thought the only other project funded by Anthem monies was the purchase of the Machuga property.
Mr. Cornish indicated that there were two actions from the Anthem funds. One was done through the budget process to fund a major portion of the Machuga purchase and the second was an adjustment in mid-year, under the $100,000.00 level to fund additional costs of that same purchase.
Councilor Dalla Valle said they kept within the tradition that Anthem funds would used be for one-time expenditures only.
VOTE #375
On the previous motion, the board, with the exception of Mr. Cornish who opposed, voted in favor of the motion to modify the 2006/2007 budget as follows: transfer $250,000.00 from Anthem Funds to General Fund.
New Line item 0010.0023.5245.0007 - Police Department - Masonry Work - $250,000.00.
Increase line item 0010.0070.4900.0000 - Transfers In (Anthem Fund #0245) - $250,000.00.
On a 3-1 vote, the motion carried.
REVISED PUBLIC WORKS CAPITAL BUDGET #385
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to accept the Revised Public Works Capital Budget Revision No. 1 dated January 5, 2007 and Revised June 7, 2007, per Mr. Rollett’s memo dated June 7, 2007.
Mr. Scoville inquired about the process.
Councilor Dalla Valle noted that this request was an amendment to the original Public Works Capital Budget approved during the regular budget process.
Mr. Cornish said the original plan was not separately presented as a package for approval but was part of the budget process that went through and incorporated into the full budget.
Councilor Dalla Valle noted that it is presented as a separate document, but it is part of the whole budget.
Mr. Scoville asked if the Council could pull it out separately to discuss it, if they so chose.
Councilor Dalla Valle said the Council could remove projects from the budget which they may have concerns over.
Mr. Cornish and Councilor Dalla Valle pointed out how well written the Public Works Capital Budget was written.
OCCUPATIONAL RISK CONTROL SERVICES #460
On a motion by Mr. Cornish, seconded by Mr. Scoville, the board voted unanimously to authorize the use of $9,328.00 from Contingency to hire Occupational Risk Control Services, Inc. to conduct specialized testing for mold and mildew problems at Police Headquarters. (See amended motion below.)
Chief Milano explained that OSHA was called in to do testing in January and they recommended coming back in July when the air conditioning system was in use in order to get a better picture of the situation. In the interim, Chief Milano received some correspondence from the Union who expressed concerns. Chief Milano spoke with Dave Bascetta, Facilities Director at the Board of Education, who recommended Occupational Risk Control Services, Inc. The company is above and beyond OSHA, in that they actually go into the building to locate the suspected areas of mold. After the city consulted with CIRMA, the Personnel Director, the Mayor’s Office, and perhaps Jerry Rollett, it was decided that OSHA should come back in July to do various testing. If the results warranted further
testing to more specific levels, the board could give them permission to hire industrial hygienists to do the work. Those individuals do not take the mold out of the building; but are skilled in locating it.
Chief Milano contacted OSHA on the advice of the city’s Safety Committee headed by Personnel Director Tom Gritt, as a preemptive move to avoid them from coming in regard to a complaint. Once they make a finding, the city has the responsibility to deal with it. Chief Milano said the masronry work currently being done will probably have a impact on eradicating this problem.
The Council voted to approve the request contingent upon the testing done by OSHA, and it will be at the discretion of Mayor Bingham, the Personnel Director and Jerry Rollett to proceed with Occupational Risk Control Services, if it’s warranted by OSHA.
Councilor Dalla Valle indicated that the Council approved the funds but they are not allowed to spend it until they get the results from OSHA.
AMEND MOTION #610
Mr. Cornish amended his motion to add the language, “contingent upon the City Council’s approval to move forward with this particular study.” Mr. Scoville amended his second. Unanimous.
ADOPT ACCOUNTING POLICIES AND PROCEDURES MANUAL #635
On a motion by Mr. Scoville, seconded by Mr. Cornish, a discussion took place in regard to the request to adopt the original version of the “City of Torrington Accounting Policies and Procedures Manual.”
Mr. Cornish asked if there was a time line to approve the document.
Ms. Proulx said she hoped to get it adopted before the end of the fiscal year so it wouldn’t become an audit finding. She stated that the board could adopt the document as it stands before them and any modifications will have to come before them in the future. This document will be the one the auditors use as their bible.
VOTE #740
The board voted unanimously to adopt the original version of the “City of Torrington Accounting Policies and Procedures Manual.”
SAWICKI & LOMBARDOZZI #745
On a motion by Mr. Cornish, seconded by Mr. Scoville, a discussion took place in regard to the request to transfer the contract with Sawicki & Lombardozzi, Inc. to UHY, LLP.
Mr. Zeller noted that the letter making the request was from Mr. Sawicki himself and asked Ms. Proulx if she had received the same request from the firm itself whereby the firm may have approved the move of the contract to this new entity.
Ms. Proulx said Mr. Sawicki is the partner of the firm.
Mr. Zeller asked if Mr. Sawicki was leaving the firm. He just wanted to make sure the city was clear with Sawicki & Lombardozzi in that they signed off on us doing business with UHY instead of Sawicki & Lombardozzi. The contract is with Sawicki & Lombardozzi. If Mr. Sawicki is leaving the firm, he didn’t know whether or not we needed to have anything from the firm itself outside of Mr. Sawicki, so there are no conflicts or questions about the transfer in the future.
Ms. Proulx said she could ask Mr. Sawicki for a written statement from the firm.
Corporation Counsel said she believed the city didn’t really have a contract with Sawicki & Lombardozzi.
Ms. Proulx indicated that there is no official contract. There was an award for three-years whereby we have a letter of agreement with them every year at the beginning of the audit process, but no official contract.
Mr. Zeller just wanted to make certain the city was in the clear in that the firm Sawicki & Lombardozzi doesn’t have any questions later on since we’re getting a letter from a member of the firm who is leaving and going to UHY. He had no reason to doubt the content of the letter but just wanted to make certain the city was covered.
Ms. Proulx said the firm is being dissolved. She could get proof if the board asked her to do so.
Mr. Zeller stated that an acknowledgment from the partners of the firm itself would be better than proof that the firm is being dissolved. Corporation Counsel will help Ms. Proulx with the wording of the request.
Mr. Farley expressed the same concern. He didn’t realize the firm was being dissolved from the information that the board was given. He thought it was more of a concern that the partners might be leaving and trying to take the business with them. He didn’t feel comfortable approving the request without knowing that the contract is going to expire because the business will no longer exist. That was a different issue.
Corporation Counsel Weaver said she would get something from the firm that will clarify the matter.
Mr. Zeller asked if the board should table this matter.
Ms. Proulx indicated that the audit will be held up until the Board of Finance can vote on this matter at their next meeting in July. Typically the auditors would have already started their preliminary work on the audit, but they haven’t done anything yet because this move must have been in the works.
Mr. Zeller suggested approving the request contingent upon the Corporation Counsel’s review of any documents submitted by Sawicki & Lombardozzi acknowledging what was just discussed.
AMEND MOTION #960
Mr. Cornish amended his motion to make their approval to transfer the contract with Sawicki & Lombardozzi, Inc. to UHY, LLP contingent upon Corporation Counsel Weaver’s review of the documents submitted by the firm, that confirms this arrangement, that the firm is in agreement with Mr. Sawicki’s letter. Mr. Scoville amended his second. Unanimous.
BUS: MAYOR & MEMBERS #1005
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to consider business presented by Acting Mayor Dalla Valle and members of the Board of Finance.
Mr. Scoville commended Comptroller Alice Proulx for presenting valuable information during their budget meetings to benefit the taxpayers of Torrington.
ADJOURNMENT #1050
On a motion by Mr. Cornish, seconded by Mr. Scoville, the board voted unanimously to adjourn at 5:30 p.m.
RESCIND MOTION TO ADJOURN #1055
Mr. Cornish rescinded his motion to adjourn. Mr. Scoville rescinded his second. Unanimous.
ADD TO AGENDA # 1060
On a motion by Mr. Scoville, seconded by Mr. Cornish, the board voted unanimously to add an item to the agenda by 2/3rds vote in regard to the City Engineer’s request to execute a contract with Milone & MacBroom.
MILONE & MACBROOM #1080
On a motion by Mr. Scoville, seconded by Mr. Cornish, a discussion took place in regard to the City Engineer’s request to execute a contract with consulting engineers Milone & MacBroom for design work on the Weed Road Culvert Replacement project to be paid from Contingency for a fee not to exceed $55,000.00, whereby 75% of the cost will be reimbursed by FEMA.
Councilor Dalla Valle said the idea of getting it to the Council and the Board of Finance within two days was to expedite the project because it’s a major inconvenience to residents in that area. The Council thought it was a great idea to move forward with this project. A number of avenues are being looked at which could reduce the cost of this project thereby reducing the city’s 25% cost.
Mr. Zeller asked if the funds were merely for the design work and if Councilor Dalla Valle knew if the actual repair of the bridge would be subject to the 75% reimbursement as well.
Councilor Dalla Valle wasn’t positive, but his thought was that there would be the same reimbursement rate from start to finish.
Mr. Zeller thought it made sense to go with a design firm for a project of this scope rather than go directly to a contractor.
Mr. Cornish asked if the $55,000.00 was the amount of the total contract and not just the city’s share.
Councilor Dalla Valle said that was the entire amount of money coming from Contingency with 75% reimbursement, so the city’s liability can be no more than 25% of the $55,000.00.
Mr. Cornish said the 75% cap is a FEMA imposed cap on all of those aid formulas, and Mr. Rollett may be working on other sources of funds to finance the 25%.
Councilor Dalla Valle said they may even be looking into getting money from the state to pick up the difference, and he thought the Governor was open to those ideas based on the severity of the claims. Ultimately, it may cost the city nothing, but we don’t know that at this time.
VOTE #1270
On the previous motion, the board voted unanimously to execute a contract with consulting engineers Milone & MacBroom for design work on the Weed Road Culvert Replacement project to be paid from Contingency for a fee not to exceed $55,000.00, whereby 75% of the cost will be reimbursed by FEMA.
ADJOURNMENT #1280
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to adjourn at 5:38 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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