Simsbury, CT - Board of Finance

These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office

BOARD OF FINANCE

1. CALL TO ORDER

The Regular Meeting of the Board of Finance was called to order at 6:02 P.M. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Chairman Paul Henault, Peter Askham, Candace Fitzpatrick, Nicholas Mason and Kevin North. Also present were Chief of Police Peter Ingvertsen, Finance Director/Treasurer Kevin Kane, Town Clerk Carolyn Keily, Director of Social Services Mickey Lecours-Beck, Deputy First Selectman Joel Mandell, Town Engineer Richard Sawitzke, Director of Public Works Mike Wrabel and other interested parties.

2. APPROVE MINUTES

July 16, 2002 Regular Meeting

Ms. Fitzpatrick moved to approve the minutes as amended from the July 16, 2002 Regular Meeting. The motion was seconded by Mr. Askham.

Mr. Henault referred to page 6 of the July 16, 2002 minutes with respect to Other Business. He stated that he had a meeting regarding an Oversight Committee for the high school project and the Sewer Treatment Plant. In attendance were Sewer Treatment Plant Superintendent Jim Clifton, Board of Education Chairman Mary-Margaret Girgenti, Public Building Committee Chairman Dick Ostop, Town Engineer Richard Sawitzke, Superintendent of Schools Dr. Townsley, First Selectman Tom Vincent and Chairman of the Water Pollution Control Authority Frank Vorawski. Mr. Henault noted that the Oversight Committee will not be a formal group that meets every month but an ad hoc group based upon any issues that come up, and any Oversight Committee member can call a meeting. He added that the group will handle both projects.

A vote was taken, and the motion passed unanimously.

OPERATING BUDGET TRANSFERS FOR FISCAL YEAR 2001/02 (GENERAL FUND)

Mr. Henault referred to Mr. Kane's August 6, 2002 memo regarding three transfers (Addendum I). Also discussed was a memo from First Selectman Vincent supporting the transfers (Addendum II). A memo from Brandon Robertson, Assistant to the First Selectman, was reviewed regarding the status of the awards from the outstanding Open Space Grants. The memo stated, "Stoddard Reservoir/Village Water Company . . . $211,500 . . . Barring any complications with the paperwork, funds should be remitted within six to eight weeks," and "Hall Property . . . $185,000 . . . Rich Sawitzke estimates that funds should be remitted within eight to ten weeks."

Mr. Mandell spoke first on the proposed $85,000 transfer for air conditioning at Eno Memorial Hall. He stated that the BOS did not vote unanimously for this transfer although all members agreed that Eno Memorial Hall needs to be air conditioned. The disagreement was on the funding. He added that Eno is used not only for senior citizens but for all cross sections of the community. He noted that even in non-summer months the temperature in Eno can be very uncomfortable. Mr. Mandell spoke briefly on the need for the police cruiser and the copy machine for the Town Clerk's office and expressed his support.

Ms. Keily spoke next on the proposed $10,000 transfer for the special copy machine for public use in the Town Clerk's office. She displayed books and binders from the 1700s and 1800s containing records and documents which the public needs to have copied for various reasons. These copies must be made "on demand", and presently employees in the Town Clerk's office have to stop what they're doing to make these copies and record the fees. The current copier has a flat copying service which, it was explained and demonstrated, causes wear and tear on the books and documents. The new copier would be coin operated and could be used by the public alone, and it would have a beveled edge making it unnecessary to remove pages from binders or press the binding of a book flat. The Town Clerk employees would therefore have more time to catch up on a backlog of work, and the costly restoration of the historic documents would not be necessary as often. Ms. Keily noted that other towns allow the public to make their own copies on the honor basis while many others have converted to coin operated machines. She estimated that 2000 copies of land records alone are made each month.

Chief Ingvertsen spoke on the need for an extra police cruiser. He stated that it has been determined that the national average for changing over a police cruiser from the patrol fleet to support services is between 50,000 and 75,000 miles. He noted that Simsbury starts taking the cars off at around 65,000 miles. He added that this was the first year he was able to keep his maintenance budget down and return money back to the fund. Having four cruisers replaced every year is necessary to keep the fleet in running order and keep maintenance costs down. He estimated that each car lasts two years.

Ms. Lecours-Beck spoke on the Eno air conditioning. She stated that the auditorium is unusable without air conditioning from May through September. She added that there was a function there last April, and even then they were afraid people were going to start passing out because of the heat. She gave some statistics: approximately 750 seniors per week use Eno, 500 of which use the auditorium. But in the summer only 200 seniors use Eno, with zero using the auditorium. Many very popular programs cannot be held in the summer. She noted that the Recreation Department also uses Eno, primarily the auditorium, and they can't run their programs during the summer. The auditorium cannot be rented out during the summer, and Ms. Lecours-Beck estimated that the Town is losing $1,500 - $3,000 because of this.

Mr. Wrabel spoke on the Eno air conditioning. He stated that it is tough to get accurate numbers for the installation of the air conditioning because they don't have plans and specifications. He estimated that just to provide air conditioning with a chiller system for the auditorium, it would cost $150,000 - $165,000. To extend it to the rest of the building, it could cost $300,000 - $320,000. He stressed that these were only educated guesses. He added that he believes any asbestos has already been removed, so that if any more is found, the removal would add to the cost.

The Board then discussed their opinions of the transfers. Mr. North stated that Eno is a valuable public asset that needs to be appropriately cared for but that the project could be accomplished without making the proposed transfer. He noted that Simsbury has a substantial amount of funds already designated to the maintenance and upkeep of Eno. There is around $55,000 of unexpended funds in the operating budgets, and there is approximately $70,000 of unexpended funds that have been generated and are available for spending on Eno out of the Eno Trust. There is also an additional pool of money coming from the sale of the Kensett painting which was an asset of the Town. The total of these three pools of money is $302,000. He added that he doesn't feel the Town needs to tap the surpluses to accomplish this project. He stated that he would prefer to designate an amount not to exceed $15,000 so that Mr. Wrabel would be able to hire a consultant to do a facilities plan for Eno, address the entire facility and take into account present as well as future needs. He stated that he would like to see $70,000 of the transfer amount go to RESERVES and $15,000 to be allocated for hiring a consultant. He added that he feels his proposed solution will lead to a better project, one that more completely and fully addresses the needs and one that will give the benefit of the very best possible cost for the project.

Ms. Fitzpatrick stated that she was glad to hear Mr. North's suggestion because she was uncomfortable with using money which would otherwise go to RESERVES. She would like to find out the annual operating expense increase or decrease. She noted, however, that she feels strongly that the $175,000 Kensett payment should be used to establish a sizeable trust off of which the interest would be used.

Mr. Askham asked that if the $85,000 got approved at this meeting, would it benefit this heat cycle? Mr. Wrabel said it would not. He stated that he feels Mr. North's plan is a good one as long as it won't slow the process down.

Mr. Mason shared the concerns just expressed and stated that he supports a coordinated plan.

Mr. North moved to authorize an amount not to exceed $15,000 be allocated from the Board of Selectmen's current year surplus for the purposes of hiring a design consultant, to present a facilities plan and an engineer design for the air conditioning project at Eno Hall. The motion was seconded by Ms. Fitzpatrick.

Mr. North amended his motion to ask the staff to use every reasonable effort to accomplish the project by the next cooling season. Ms. Fitzpatrick amended her second, and the motion carried unanimously.

Mr. Henault summarized by stating that the BOF has approved $15,000 of the operating transfer from the BOS budget to hire a facilities consultant to look at Eno to determine the best way to look at the entire facility, not just the auditorium, and to develop a plan and an estimate on how to do it. He noted that the BOF is in agreement with the BOS about the need to have Eno air conditioned, and he congratulated the First Selectman on managing the budget in a way that creates this operating budget surplus. Mr. Kane recommended taking the $15,000 from the Meadowood Legal Expenses line item.

Ms. Fitzpatrick moved to fund the prior motion for $15,000 for the Eno study from account number 100-03316, Meadowood Legal Fees. Mr. North seconded the motion.

Mr. Mason took exception to using the Meadowood Legal Fees. He stated that he felt it should be a budgeted item.

The vote passed with four yes votes and one no vote (Mr. Mason).

Ms. Fitzpatrick moved to approve the $24,000 requested in the Board of Selectman budget transfers to fund a police cruiser. The motion was seconded by Mr. Mason.

Ms. Fitzpatrick amended her motion to include the specific funding on page two of Kevin Kane's memo of August 6th. Mr. Mason amended his second.

Mr. North commented that he was not comfortable with converting operating surpluses into capital purchases. He stated that he feels very strongly that this should not be considered again until the next budget cycle. Mr. Askham asked that if a fourth police cruiser isn't bought this year, then will five be needed next year? The Chief said that that was true.

The vote passed with four yes votes and one no vote (Mr. North).

Ms. Fitzpatrick moved to approve the $10,000 for the special copy machine for public use in the Town Clerk's office, funds to be transferred from the Board of Selectmen operating budget as outlined on page two of Kevin Kane's August 6th memo. The motion was seconded by Mr. Askham and carried unanimously.

REQUEST FROM RESERVES FOR FISCAL YEAR 2001/02 (SELF INSURANCE FUND)

Mr. Kane reviewed his August 19, 2002 memo, "Self Insurance Fund - Fiscal Year 2001/02 Financial Results" (Addendum III) which showed a net loss of $569,653.23. A lengthy discussion ensued during which Ms. Fitzpatrick suggested having Bob Lindberg and the Chairman of the Insurance Committee come to the next BOF meeting to discuss the situation. Mr. Henault requested that Mr. Kane handle this. Mr. North noted that the BOF just looks at the numbers but is not necessarily qualified to evaluate alternatives.

Ms. Fitzpatrick moved to fund the self insurance fund at the present time in the amount of $249,424.57 from RESERVES. The motion was seconded by Mr. Askham.

Mr. North discussed the need to ultimately go back to RESERVES for the remainder of the shortfall and recommended doing the entire transfer now. Ms. Fitzpatrick decided to change her motion.

Ms. Fitzpatrick withdrew her motion. Mr. Askham withdrew his second.

Ms. Fitzpatrick moved to follow Kevin Kane's memo of August 19, 2002 and approve a transfer in the amount of $601,377 from RESERVES, per section 908(c) of the Town Charter, to the Self Insurance Fund. The motion was seconded by Mr. Mason and carried unanimously.

STATUS OF REQUEST FOR PROPOSALS, FINANCIAL ADVISORY SERVICES

Mr. Kane stated that he has received four proposals, from Southwest Bank, Peoples Bank, Dixworks and Public Financial Management. He asked that two members of the BOF work with him on interviewing some or all of the firms and making a recommendation to the BOS. Mr. Mason and Mr. Askham volunteered.

WATER MAIN EXTENSION CAPITAL PROJECTS

Mr. Henault asked Mr. Sawitzke to comment on Mr. Kane's August 6, 2002 memo (Addendum IV). Mr. Sawitzke stated that a number of people had expressed interest in having public water when the Town was doing the northwestern Simsbury water main extensions. He added that the only reason the water main extension projects became the Town's business was to provide an equitable way to assess the cost.

Mr. North questioned the instances where funds have been expended by the Town but residents have never been assessed. Mr. Sawitzke confirmed this and stated that he is now taking steps to make the assessments, going back to September, 2000. Mr. North wondered if there was a way to efficiently designate responsibility for these projects and get them out ASAP. He stated that he would encourage the Town Engineer and the Director of Finance to put the assessment process on the front burner for the BOS as soon as reasonably possible.

Mr. North questioned the necessity of the Town having the water main extension program. Mr. Sawitzke stated that he feels it is important that the Town finish what they started. He added that Sagamore, Surry, Fleetwood and Lark, Cardinal have expressed a lot of interest and call him frequently. The design work is done on Sagamore, Surry, Fleetwood and the hearing has already been held. Cardinal has a petition signed by everyone for an extension on that street. Some preliminary design work has been done on other streets. Mr. North commented that BHC came to Simsbury suggesting that they were going to make substantially better service available to residents and improve the system. He stated that he doesn't understand why it is the Town's responsibility to deliver in this regard.

Ms. Fitzpatrick stated that the BOF needs to refer the administration of the water service of the Town to the BOS for policy clarification.

Mr. Sawitzke asked to get some assistance in dealing with BHC to work out the most optimum financial arrangements.

Mr. Kane stated that Mr. North wanted the Town to be liaison between BHC and the citizens verses being a financial institution, a funding mechanism. Mr. North agreed.

Mr. North asked that the discussion be continued until the next meeting because of the lack of dollar amounts for the projects appearing in Mr. Sawitzke's memo.

Mr. Askham noted that the projects were put forward and approved a few years ago with the purpose to be spent this way. He stated that he feels uncomfortable reversing that decision. He added that the BOF should recommend to the BOS to study this, and they might want to reconsider the authorization they were given. The BOF has no legal authority to say the money should not be spent.

Mr. Sawitzke stated that he could provide specific figures. Mr. Henault suggested continuing the discussion at the next meeting when the figures are available.

Mr. Henault thanked Ms. Fitzpatrick for her efforts on the committee to put together the new Annual Report. Ms. Fitzpatrick thanked Mr. Henault for his contributions to the Annual Report as a co-committee member.

Mr. Henault referred to a mailing he received on the Capitol Regional Partnership meeting on Thursday, September 19, 2002. Since the other members had not received the mailing, Mr. Henault asked the clerk to copy his and mail copies to them.

Mr. Henault referred to the "agenda and subscription renewal" request. He asked the clerk to make copies of this for the other members as well.

Mr. North stated that he attended some Public Building Committee meetings since the last BOF meeting. He noted that significantly more financial discipline has been evidenced in terms of trading off cost increases for cost savings. He stated that he believes they fully understand that the BOF does not want to hear that there will be Town share in any amount that would exceed the original $34,000,000 objective. He added that Mr. Mason has also attended a couple of meetings. Mr. Mason stated that they have shown a real concern to stay on schedule.

Ms. North moved to adjourn the meeting at 8:33 P.M. The motion was seconded by Mr. Askham and carried unanimously.

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Paul W. Henault, Chairman Roxanne Farrell, Clerk