CAPITAL IMPROVEMENT PROGRAM COMMITTEE
TOWN Of WILLINGTON
WILLINGTON, CT ~06279
Meeting Minutes
Town Office Building
February 11, 2013
Members Present: Members Absent:
Vice Chairman, Jim Bulick
Kelly Trueb Allen Furphy
Chairman John Patton Jim Poole
Donna Latincsics, Business Manager Ken Schoppmann, BOF Chairman
Melissa Welsh Tyler Millix
First Selectman Mailhos
Also Present:
Residents
Chairman Patton called the meeting to order at 7:07 P.M.
- Approval of minutes – 1/8/13; 1/10/13; 1/14/13 & 1/15/13
Vice Chairman Bulick moved to approve the minutes of January 8, 2013.
Kelly Trueb seconded the motion.
Vote: Vote: 5 Yes (J. Patton; K. Trueb; J. Bulick; M. Welsh; C. Mailhos) 0 No.
Vice Chairman Bulick moved to approve the minutes of January 10, 2013.
Kelly Trueb seconded the motion.
Vote: Vote: 5 Yes (J. Patton; K. Trueb; J. Bulick; M. Welsh; C. Mailhos) 0 No.
Vice Chairman Bulick moved to approve the minutes of January 14, 2013.
Kelly Trueb seconded the motion.
Vote: 4 Yes (K. Trueb; J. Bulick; M. Welsh; C. Mailhos) 0 No, 1 Abstain (1-J. Patton)
Vice Chairman Bulick moved to approve the minutes of January 15, 2013.
Kelly Trueb seconded the motion.
Vote: Vote: 5 Yes (J. Patton; K. Trueb; J. Bulick; M. Welsh; C. Mailhos) 0 No.
- Recommendation of Performance Contracting Review Committee
Chairman Patton stated the Board of Selectmen has requested to receive recommendations of members to serve on the Performance Contracting Committee. It was suggested to have a member of CIP also serve on the Committee. Vice Chairman Bulick has expressed interest.
First Selectman Mailhos stated a recommendation was made at the Public Hearing to have a working group made up of the members (stake holders) who would be affected by the energy audit such as the Library, Senior Center, Fire Departments, this building, Public Works as well as the Town Office building. First Selectman Mailhos added it would be beneficial to also have someone from the CIP Committee in the group as well.
Chairman Patton moved to recommend Jim Bulick to be appointed to the Performance Contracting Review Committee.
Melissa Welsh seconded the motion.
Melissa Welsh asked the expectations to have Vice Chairman Bulick on this committee? First Selectman Mailhos stated it is hopeful that the people assigned to the working group will be empowered to make the decisions as to whether or not we move forward at all and if we do move forward – to put in perspective a configuration of what the project is going to look like. She added we have an opportunity to do a lot of things or a few things. What is decided could depend on the impact of the scope. The Board of Selectmen would like to have the stakeholders have input on the scope of the project. Since Vice Chairman Bulick is not involved directly with the buildings, it is helpful to have him on the committee from a CIP perspective in regards to our long term
commitments.
Melissa Welsh asked if any of the projects would be added to the CIP in the future. First Selectman Mailhos stated they would only if the Town decides not to move forward with the Performance Contracting, then the items (like the boilers) will begin to show up on the CIP. Vice Chairman Bulick explained the Performance Contracting doe not require out of pocket money; the savings incurred from the new equipment will help pay off the “lease” of the equipment over time. Melissa Welsh asked where the funding would come from. First Selectman Mailhos said the funding comes from all the different budgets involved that already pay those expenses now in the energy line items. For example, the amount that gets paid back would not exceed the amount they would
have spent if they kept the old boilers. First Selectman Mailhos added that the term of the lease could be shortened by adding additional funding from the General Fund. She then stated that we don’t really have the money to front for these things and she is not advocating doing that.
Vote: 4 Yes (M. Welsh, J. Patton, K.Trueb & C. Mailhos) 0 No 1 Abstain (J. Bulick)~~
- Prepare final CIP Report for Board of Selectmen Consideration
Chairman Patton stated he worked on the plan for 2014 – 2015 years and beyond, leaving the 2013-2014 plan alone from the last meeting.
Melissa Welsh asked Chairman Patton about the bonding work for the road projects in - 2015 -2017 and what the starting payment would be and what makes up the $3.8 million total. Chairman Patton answered that would be for the last year and would be $175,000. He clarified that is actually going to be more than that, because it is for everything that is listed as a bond and the payment only showed a half of a year of payments as well as a bond anticipation note.
Peter Latincsics asked why it is such a dramatic increase of $175,000 and why has it gone up so much than in the previous years? Chairman Patton answered because it is a bond for road improvements. Mr. Latincsics then asked when that was decided? What is the basis for the road improvements? Chairman Patton told Mr. Latincsics that he does not have patience for this – and he can do whatever he wants at the Board of Finance.
Chairman Patton continued - the road projects will begin in 2014-2015 with $559,000 the next years you will see $1,832,500 and $530,000 for the bond plus $820,000 for the bond. He added there are a number of road projects on here, the only way to make it work is to bond. Leasing is not an option. He reiterated that we don’t have the cash reserve to pay for it and the only thing that makes sense to do is bonding. Because the numbers are large, the fixed cost to get to the bond would be the same.
Vice Chairman Bulick said we talked briefly about a note instead of bonding. Chairman Patton answered yes; we could do an anticipation note. It is similar to a construction loan, it is a short term borrowing note that rolls over once a year and you can roll the interest in or pay it. He stated he anticipates getting approval for the projects at once, but doing them over a period of time. The bond anticipation notes will then all roll into one bond.
Chairman Patton stated he removed the land acquisition request of $100,000 as well as $29,570 for the design and development at River Road ball fields. Other things that were removed were: WHFD renovations and water hook up; new fire house for WHFD, refurbish 1991 Engine Tank. Melissa Welsh asked why he took that one out and left Rescue 149; Chairman Patton said his reasoning was because Rescue 149 is used more often then the Engine Tank. He added part of the reasoning many of the fire requests were removed is because there has to be a coming together of the two departments. First Selectman Mailhos added that it is a recurring agenda item on the BOS meetings. The Fire Service will also be on BOF agenda this coming Thursday; she is not sure if they will discuss
consolidation options. Chairman Patton said he would also like both departments to review and tell us what is vital and what is not. If we continue to subsidize both departments just because there are two departments, then there is no reason for them to come together.
Melissa Welsh asked if there is an ETA as to when they would consolidate. First Selectman Mailhos said no – we cannot dictate a consolidation – if it were forced, it would at least be six months from the decision, and it would take more than just the BOS to push for it. She added if it was done voluntarily, it could happen as early as next week. Vice Chairman Bulick said he is ok with zeroing it out and wait to see what happens. Melissa Welsh asked if we should zero out the rest of the things. Chairman Patton said the reason he left the others (refurbishment of Rescue 149; exhaust system at Station 13, pick up truck and ambulance) on the list was because they were approved for this year at a previous meeting, adding the ambulance is a revenue
producer. He stated the engine tank was promised a few years ago as well as replacement of the generator at WHFD.
Vice Chairman Bulick said he requested clarification on the cost of the backhoe. Melissa Welsh clarified that they wanted to look into leasing options but needed a better number (cost) for it.
Kelly Trueb asked if replacing the pick up truck at Station 13 is necessary. Stuart Cobb, who was in attendance stated it is because they had problems with the truck while trying to plow the parking lot during the blizzard.
Business Manager Donna Latincsics clarified that there are four pieces of equipment that are included in a proposed lease: the pickup, ambulance, a used sweeper and a used backhoe. Melissa Welsh asked to have Donna clarify that the lease is for public works as well as the Fire Department. She then changed the leasing number of the $30,000 lease payments should be reduced to $17,500 for FY 2013-2014. Donna then clarified that there are no lease payments for the year 2012-2013 but if we lease something new it depends how we set it up – if it is late in the year, we would end up paying on it the next year. The lease number for $105,000 would be $17,500. Donna added that she agreed with Chairman Patton – timing is important when you close on
the lease and begin the payment but it is hard to line up two used pieces of equipment. She said it doesn’t make sense to her because you have money you are paying interest on but no equipment to pay for. Chairman Patton said he tried to tell everyone that last week. The only thing that would make the most sense would be to take the money and appropriate it from Capital Reserve for an unspecified piece of equipment (like a backhoe or sweeper). Purchase it and then take out the lease to pay it back. Donna agreed that paying interest on $35,000 is affordable to the Town.
Melissa Welsh suggested moving the backhoe and sweeper out a year and asking Lynn do more research for getting something used. Kelly Trueb said you can research all you want, but if the perfect piece of equipment becomes available and you don’t have the funds appropriated, it will be gone. Melissa Welsh asked if that is something the BOS can authorize. Chairman Patton clarified that the BOS would need approval from BOF. Any other appropriation over $20,000 needs Town Meeting approval. Leases are different because they don’t go through the normal authorization process – they are not a long term commitment. He added that there are many ways to do it, but some of the processes are not cookie cutter or ‘clean’ adding that
many people like it better the ‘cookie cutter process’ otherwise you have people thinking you are doing something wrong.
Melissa Welsh asked for clarification on the leases for 2013. Chairman Patton stated the $30,000 number that was in there has been eliminated and can be replaced with the $17,500 for the new 2014 Public Works leases which would begin to be paid in 2013 – 2014. The WFD#1 truck and ambulance will be paid for out of the Emergency Services Fund at an adjusted amount of $220,000.
Melissa Welsh questioned the replacement of the dump and small dump in 2014-2015. Chairman Patton stated that he anticipated for those two to be purchased in 2015-2016 but not make payments until the following year (such as in the spring and begin payments in June).
Melissa Welsh asked First Selectman Mailhos about the current status of the overall budget. First Selectman Mailhos said the BOS just approved their budget last Monday and it will be going before the Board of Finance on February 21st. She stated she did not have the numbers with her but the budget was up around $200,000 and the Board of Education is up $400,000.
The five year totals were discussed. :
5 year estimated cost: $8,394,000
General Fund: $3,519,000
Other Funds: $4,875,000
Melissa Welsh stated those numbers are drastically different than the numbers that were presented on January 15th. The original 5 year estimated cost began at $16,062,000.
Chairman Patton stated the road bond is gong to increase the local funds contribution but there is no other way around it – roads are an essential part and that is what Town Government is supposed to do - maintain the roads. He added that we were faced with the biggest numbers he has ever seen over a five year period. First Selectman Mailhos stated it is because we have said no to so many things over the past ten years.
Chairman Patton suggested leaving some money in the Emergency Services Fund and not zero it out and instead of bonding something we can use LOCIP funds. First Selectman Mailhos stated that LOCIP funds are in danger of being cut. Melissa Welsh added that the car tax could also be cut. First Selectman Mailhos warned if the car tax were to be cut, we could potentially lose $950,000 in revenue next year. Chairman Patton said if it goes through we could be looking at a 3 mil increase. First Selectman Mailhos said she does not believe the bigger cities will let that happen.
Discussion was held on the Emergency Services Fund – first Selectman Mailhos stated that we keep thinking the revenue is going to go down. Willington Emergency Management Director, Stuart Cobb stated the percentage of the uninsured people is fairly low. He added that he was told the impact most likely will not hit us for a few more years. The fund will be increased to $145,000 bringing total to $51,294 for FY 2014-2015 through the out years. Mr. Cobb stated the outlook is not clear.
Vice Chairman Bulick suggested putting the items that have been removed on a separate list to keep as reference if they are requested again in the future.
Kelly Trueb moved to accept the CIP plan with modifications.
First Selectman Mailhos seconded the motion.
First Selectman Mailhos stated she agrees with Donna on the leases. We will have to figure it out with the Board of Finance anyways. Chairman Patton stated that the BOS can modify the document. Vice Chairman Bulick said you took all of the requests and you figured out how to make it all work; there is a substantial cost to that. Chairman Patton added that there is nothing extravagant in there. He added there is a cost to run a business as well as running a Town. As much as we try to deny it and try to push it off a year, there is a point when you run out of years. First Selectman Mailhos said the only part that is approved is the first year until the referendum. Chairman Patton clarified this is a plan of the things we feel are important that
need to be done. The only things approved are in fund 930 and the debt payments and anything coming from the reserve fund has to go through the normal process – requesting appropriations from the BOF.
Vice Chairman Bulick stated he is uncomfortable in upping the spending in this economic climate. Chairman Patton said he has never heard any time is a good economic time.
Vote: 3 Yes (K. Trueb, C. Mailhos, J. Patton) 2-No (J. Bulick, M. Welsh)
Next meeting will be May 13th at Willington Hill Fire Department.
Donna will work on the final plan and have ready to present to Board of Selectmen, who will meet on Thursday, February 14th. The CIP will be sent to the members by Wednesday and are requested to send back comments by Thursday morning for submittal to the Board of Selectmen as the plan will also be presented before the Board of Finance on that date as well.
Peter Latincsics asked to have the minutes reflect that he was in attendance but was not permitted to ask any questions.
Vice Chairman Bulick moved to adjourn the meeting at 8:39 P.M
Melissa Welsh seconded the motion.
All in favor.
Respectfully submitted,
Robin Campbell
Recording clerk
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