These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
NOVEMBER 20, 2001
REGULAR MEETING
1. CALL TO ORDER
The Regular Meeting of the Board of Finance was called to order at 6:00 P.M. in the Main Meeting Room of the Simsbury Town Offices. Present were Chairman Paul Henault, Board Members Peter Askham, Candace Fitzpatrick and Michael Wade, Finance Director Kevin Kane, Board of Education Business Manager David Holden, Chairman of the Public Building Committee Richard Ostop and Town Engineer Richard Sawitzke.
2. APPROVAL OF MINUTES - October 16, 2001
A motion was made by Ms. Fitzpatrick and seconded by Mr. Wade to approve the minutes of the October 16, 2001 Regular Meeting. Chairman Henault reviewed and updated the Open Action Items. After discussion of the action items the motion to approve the minutes passed unanimously.
3. Simsbury Farms Fund Budget Update
In the absence of Gerard Toner, Chairman Henault asked Mr. Kane to review the information contained in a memo from Mr. Toner to Chairman Henault dated November 14, 2001 regarding the status of the Special Revenue Fund. (Addendum I) Mr. Kane informed the Board that the shortfall in revenue is due to a timing issue related to golf revenues. Ms. Fitzpatrick reinforced the Board's need for monthly reports on the Simsbury Farms Special Revenue Fund. Chairman Henault said that he and Mr. Kane had met with the Simsbury Farms Complex Committee and informed them that the expenditures must balance with revenues and that if continued infusions from the General Fund are required, the fund could possibly lose its independent status.
Ms. Fitzpatrick made a motion to have Chairman Henault send a letter to the Board of Selectmen outlining the concerns of the Board of Finance regarding the Simsbury Farms Special Revenue Fund and alerting the Board of Selectman that the Board of Finance has requested a report summarizing the January meeting of the Simsbury Farms Complex Committee and quarterly updates from Mr. Toner regarding the fund. The motion was seconded by Mr. Wade and passed unanimously.
4. AUTHORIZE THE ESTABLISHMENT OF THE "POLICE SPECIAL DUTY" SPECIAL REVENUE FUND
Chairman Henault directed the Board to a memorandum from Mr. Kane to the Board of Selectmen and Board of Finance dated November 7, 2001 requesting the establishment of the "Police Special Duty Fund" (Addendum II) and said that at the present time revenues generated from "Special Duty" were being applied to the General Fund and that
MINUTES
BOARD OF FINANCE
NOVEMBER 20, 2001
PAGE 2
creation of the "Police Special Duty" fund would allow for matching expenditures and revenues within the same fund.
Mr. Wade made a motion to authorize the establishment of a "Police Special Duty" Special Revenue Fund as outlined in Mr. Kane's memorandum dated November 7, 2001 and in accordance with the Policies and Procedures attached thereto and pending any necessary action by the Board of Selectmen. The motion was seconded by Mr. Askham and passed unanimously.
5. BUDGET TRANSFER REQUEST FROM RESERVES
Simsbury High School Renovation/Addition Fees for 30% Design Development Plan
Chairman Henault referred the Board to a letter to First Selectman Anita Mielert from the Chairman of the Public Building Committee Richard Ostop dated October 31, 2001, regarding the Simsbury High School Renovation/Addition Fees for 30% Design Development Plans (Addendum III) and asked Mr. Ostop, Mr. Holden and Mr. Sawitzke to review and answer questions regarding the request. Mr. Ostop gave a brief history of the project stating that several years ago the firm of Fletcher-Thompson had been retained by the Public Building Committee to propose a twelve-room addition to the existing high school. In developing the project, concerns were raised relative to the ADA, fire code, etc. At the time, the high cost of the proposed renovation led to the investigation of building a new high school. After
a decision was made that the renovation was the appropriate course of action, the Board of Selectmen asked the Building Committee to negotiate with Fletcher-Thompson, the original architects, to amend the design contracts to go into a 30% Design Development Plan. The fees for the 30% Design Development Plan include architectural fees, site survey, boring and testing, traffic survey, hazardous waste study, etc., and would allow for a sufficiently accurate number to take it to referendum in May 2002. The Board members expressed concerns regarding the need for information as the project develops since, at this point in time, the only documentation they have is the request for the transfer of funds. Mr. Holden said that between now and the May referendum, the appropriate boards and commissions will receive timely information regarding the project from the Oversight Committee as it goes forward, and stressed that the project needs the support of the Board of Selectmen,
Board of Education and Board of Finance. Ms. Fitzpatrick suggested that the Board of Finance request that paperwork generated around the project be forwarded to the Oversight Committee and they in turn forward any information they feel relevant to the Board of Finance. Mr. Ostop also informed the Board that even if the project is not approved in the May referendum that the drawings, etc. are the property of the town and can be kept for future use. Chairman Henault asked who makes the critical decisions regarding variances, alternatives for the sprinkler systems, ADA compliance, etc. Mr.
MINUTES
BOARD OF FINANCE
NOVEMBER 20, 2001
PAGE 3
Ostop said that even though the architect could make suggestions or recommendations, final decisions would be made by the Fire Marshall; that the Fire Marshall would be involved in the project as it develops; and that O & G, a firm which has a experience with a number of schools in the state, has been retained as construction manager. Mr. Holden said that plans for this project had to be submitted to the State Department of Education School Facilities Unit and would go through extensive review to ensure that the project meets state fire and building codes. Mr. Sawitzke said that the 30% Design Development Plan has four stages (the program, conceptual drawings, preliminary design and the 30% design development) and payments would be made as each stage is completed. He also told the Board that the
town has used the 30% Design Development Plan on other projects and it allows for a professional estimator to put firm numbers to the project. In response to Mr. Askham's questions, Mr. Kane informed the Board that the project would not negatively affect the town's bond rating because it is reimbursable, but that it does impact reserves.
Ms. Fitzpatrick made a motion to approve transfer of $450,000 from 908A reserves to pay for the Fletcher-Thompson contract to enable them to proceed with the 30% Design Development Plan. The motion was seconded by Mr. Wade and passed unanimously.
Chairman Henault informed Mr. Ostop that he would need the appropriate information from the Building Committee to present the project at the Board of Finance Public Hearing on Capital Projects scheduled for March 12th.
At 7:20 P.M. a motion to recess for a break was made by Ms. Fitzpatrick, seconded by Mr. Askham and passed unanimously.
At 7:25 P.M. a motion to reconvene was made by Ms. Fitzpatrick, seconded by Mr. Wade and passed unanimously.
Ms. Fitzpatrick made a motion to reconsider the language of the motion made to approve the transfer of funds from reserves for the 30% Design Development Plan for the Renovation/Addition to the High School. The motion was seconded by Mr. Wade and passed unanimously.
Ms. Fitzpatrick reworded the motion as follows: That the Board of Finance appropriate up to $450,000 from 908A Reserves to pay for the scope of services and contract for 30% Design Development Plan related to the High School Addition/Renovation project.
The motion was seconded by Mr. Wade and passed unanimously.
MINUTES
BOARD OF FINANCE
NOVEMBER 20, 2001
PAGE 4
6. DISCUSSION ON 2002/2003 GUIDELINES
The Board discussed the various methods of establishing guidelines, i.e. two sets of guidelines, one for the Board of Selectmen - one for the Board of Education; one guideline; asking both Boards to do zero-based budgeting; setting a tax adjustment guideline and have the Boards work within that number. Mr. Askham noted the drop in revenue, and the impact of a possible drop in tax collection rates. Chairman Henault said that at the Board's next meeting a decision on guidelines would have to be made and prior to that meeting he would invite the Finance sub-committees of the Board of Selectmen and Board of Education to attend to a special meeting, date to be determined.
7. CALENDAR OF MEETING DATES - 2002
Chairman Henault asked Mr. Kane to look into reducing the size of the published Legal Notices with the Town Attorney in order to reduce the cost.
On a motion made by Ms. Fitzpatrick, seconded by Mr. Wade and passed unanimously, the meeting schedule was approved as submitted in a memorandum to the Board of Finance from Mr. Kane dated October 23, 2001. (Addendum IV)
8/9. CAPITAL PROJECTS APPROVAL TIME TABLE/OPERATING BUDGET CALENDAR
Mr. Kane reviewed the proposed 2002 Capital Project Approval Timetable Addendum V) and the 2002 Operating Budget Calendar. (Addendum VI) Chairman Henault noted that the dates specified are "by" that date, so action may be taken prior to the date if warranted.
10. FINANCIAL REPORTS
Mr. Kane reviewed the written Financial Performance Report - Four Months Ended October 31, 2001 (Addendum VII) highlighting the Expenditure Report areas of concern including legal fees, police overtime, police special duty which will now be accounted for in a Police Special Duty Fund, snow removal, and the Revenue Report showing a shortfall in investment income.
Mr. Holden gave an oral report stating that as of this meeting the BOE is at 36% of budget expended as compared to 39 1/2% last year at the same time and reported on the legal fees relative to Special Education Hearings. On the revenue side, $55,000 was budgeted for special education cost grant revenue and the actual will be $134,000 more
MINUTES
BOARD OF FINANCE
NOVEMBER 20, 2001
PAGE 5
than that because there are two outside placements and seven students who exceed the five-times-per-pupil expenditure.
Chairman Henault asked who was responsible for actively seeking grants. Mr. Holden responded that grants are typically filed by Gregg Little, Director of Special Services and Mike Cicchetti, Assistant Superintendent, from the grants available from the State Department of Education. Previously obtained grants were a $10,000 grant for computer infrastructure and a $100,000 grant for integrating the arts and social studies curriculum.
Chairman Henault requested that Mr. Holden submit a written monthly financial report to the Board.
11. AUDIT REPORT UPDATE
Mr. Kane reported that the Audit Report is almost completed and that the numbers are essentially the same as the marked-up copy submitted to the Board last month. Chairman Henault asked Mr. Kane to send a draft to him and Messrs. Askham and Belfiore.
12. DEBT POLICY - AFFORDABILITY OF FUTURE CAPITAL PROJECT
Chairman Henault referred the Board to a memorandum from Mr. Kane to the Board of Finance dated November 20, 2001 (Addendum VIII which he requested to facilitate the capital process going forward and describing what would happen moving down to a five percent target from a seven percent target for non-modernization expenditures. Mr. Kane reviewed the document for the Board stating that excluding the High School Modernization Project an annual debt service of not more than 5% is attainable, and that the "Special Debt Policy" in the amount of no more than 10% annually based on the current six-year CIP with the high school project is also attainable.
13. OTHER BUSINESS
Chairman Henault said he would be sending a letter to the Board of Finance members sometime next week outlining the roles and responsibilities of the Board relating to the abilities of the Board to alter budgets for the Board of Selectmen and Board of Education.
Chairman Henault acknowledged the contributions and service to the Board of Mary Glassman over the past two years and recognized the presence of Kevin North who will be joining the Board of Finance after the swearing-in ceremony.
MINUTES
BOARD OF FINANCE
NOVEMBER 20, 2001
PAGE 6
14. ADJOURNMENT
On a motion made by Ms. Fitzpatrick, seconded by Mr. Askham and passed unanimously, the meeting was adjourned at 8:30 P.M.
_____________________________ __________________________
Paul W. Henault, Chairman Joanne M. Alt, Clerk
| 
