These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
APRIL 13, 2004
REGULAR MEETING
CALL TO ORDER
The Regular Meeting of the Board of Finance was called to order at 6:02 P.M. in the Board of Education Conference Room at the Simsbury Town Hall. The following members were present: Chairman Paul Henault, Peter Askham, Candace Fitzpatrick, Nicholas Mason, Kevin North and Michael Wade. Also present were Board of Education Business Manager David Holden, Finance Director/Treasurer Kevin Kane, Deputy First Selectman Joel Mandell, Town Engineer Richard Sawitzke, Board of Education Member Jack Sennott, Superintendent of Schools Joseph Townsley, First Selectman Thomas Vincent and other interested parties.
APPROVE MINUTES
March 9, 2004 Special Meeting #1
Ms. Fitzpatrick moved to approve the minutes from the first Special Meeting of March 9, 2004. Mr. Mason seconded the motion. A vote was taken, and the minutes, as amended, were approved unanimously.
March 9, 2004 Regular Meeting
Mr. Wade moved to approve the minutes from the March 9, 2004 Regular Meeting. Ms. Fitzpatrick seconded the motion. A vote was taken, and the minutes, as amended, were approved unanimously.
March 9, 2004 Public Hearing
Ms. Fitzpatrick moved to approve the minutes from the March 9, 2004 Public Hearing. Mr. North seconded the motion. A vote was taken, and the minutes, as amended, were approved unanimously.
March 9, 2004 Special Meeting #2
Ms. Fitzpatrick moved to approve the minutes from the second Special Meeting of March 9, 2004. Mr. Wade seconded the motion. A vote was taken, and the minutes, as amended, were approved unanimously.
March 30, 2004 Public Hearing
Ms. Fitzpatrick moved to approve the minutes from the March 30, 2004 Public Hearing. The motion was seconded by Mr. North and carried unanimously.
March 30, 2004 Special Meeting
Mr. Wade moved to approve the minutes from the March 30, 2004 Special Meeting. The motion was seconded by Mr. North and carried unanimously.
ACTION ON PROPOSED 2004/05 BOARD OF EDUCATION OPERATING BUDGET
Mr. Henault reminded the BOF members that at the last Special meeting they asked the BOE to look at their budget again and come within the cap of 4.5%. He referred to the memo from Richard Hogan, BOE Chairman which had been placed at each BOF member's seat. The memo stated that the BOE held a Special Meeting the night before and adopted a revised 2004/05 budget of 5.17%.
Mr. Henault introduced projected mill rate worksheets (Addendum I) prepared by Mr. Kane. They presented different scenarios using a BOE budget of 4.5% or 5.17%, varying amounts of Surplus use with the resulting mill rates and tax increases. A lengthy discussion ensued on the use of Surplus (Reserves). Mr. Kane stated that right now the Reserves are $5.8 million (8.5% or 8.6%).
Mr. North explained that he felt Reserves will need to be used for Capital Projects which will be legitimate one-time draw-down as opposed to a recurring, and possible addiction, that could occur through using it for Operating purposes.
Mr. Mason commented that $5.8 million in Reserves and a percentage well over 7% could represent over-taxation in the past. Mr. North responded that 7% is the debt service policy and is the minimum amount that the rating agencies think is a sufficient Reserve, not the maximum. Mr. Mason stated that he understood but suggested that there is room here for latitude in dealing with the current situation.
Mr. Henault reminded the Board that, oftentimes in the past, they have gone to the Town Meeting with a range, and waited till the evening after the referendum to make a decision as to whether to use Surplus or not. It's not something that has to be decided this evening.
Ms Fitzpatrick stated that she agreed with Mr. North on not using Reserves. She added that she is content to wait until after the referendum to have that final discussion. She noted that she has a concern about the high school renovation and what sort of contingency money might be run through. She added that they have to be on the conservative side in conserving Reserves in order to prepare for the possibility of being responsible for significant dollars.
Mr. North stated that that is something they can anticipate with some degree of certainty. He noted that the construction manager has already effectively put the Public Building Committee on notice that he doesn't feel that there will be adequate contingency to see us through the project. He added that he thinks there is a distinct possibility that by the time the project is over there'd be half to one million dollars more of additional funding requests not previously provided for in any other way. He felt that that would have to come out of Surplus. Mr. Henault wondered whether the Board would want to do it with Surplus or with a clean-up bond.
Mr. Sennott stated that the BOE's major concern in looking for budget cuts was class sizes. He added that they found three items that were, based on new information, easy to cut back without cutting the curriculum.
Mr. Askham moved to make the Board of Education budget $49,822,625 [4.5%]. The motion was seconded by Mr. North.
Mr. Mason asked if they were talking about using Reserves straight away. It was decided to handle the Operating Budget motion separately from a discussion on the possible use of Reserves.
Mr. Wade stated that he continues to think that they should allow the voters to decide. The BOE should have the opportunity to present their budget to the town.
A vote was taken, and the motion passed with five yes votes and one no vote (Mr. Wade).
Ms. Fitzpatrick moved to amend the Agenda to go to Agenda Item #4 next. The motion was seconded by Mr. Askham and carried unanimously.
CAPITAL PROJECT UPDATE
High School Modernization Project
Mr. North stated that there are two red-flag items in regard to this project. 1.) We are going through the contingency at a rate which has alarmed a lot of professionals on the project. As of the last meeting of the Public Building Committee, it was estimated that there is $666,000 available for contingency. It is anticipated that that is likely not enough to finish the project. 2.) The mechanical contractor, Ferguson, has submitted a change order making a claim for both construction delay and the increase in cost. Mr. North stated that he and members of the Public Building Committee have shared with the First Selectman their recommendations that it might not be too soon to have a professional construction litigator at hand, should this thing not be resolved through negotiations by the
parties, to make sure that the Town's interests are protected.
Mr. Sawitzke stated that, looking at the contractual obligations, the contracts are in fact with the construction manager, not with the Town.
The Board reviewed the high school project's "Monthly Progress Report No. 9" which the members received in their packets. Discussion between the Board members and Mr. Holden centered around "Change Orders by Trade Contractor". In response to an inquiry by Mr. Askham, Mr. Holden stated that the ability to occupy the science classrooms is being pushed out until approximately October 14th, but the hard classrooms, the media center and the guidance room are presently on schedule for the start of the school year.
Sewer Treatment Plant Expansion and Renovation
Mr. Sawitzke stated that they received five bid packages and opened the bids on April 8th. He added that the C. H. Nickerson Company is the apparent low bidder at $20,840,000. He noted that the Engineering consultants' estimate was $20,890,000. He said that construction should start in around six months and be completed in around two years.
Mr. Wade asked where the Town stands with the nitrogen penalties. Mr. Sawitzke stated that the costs are not too excessive at this point.
Eno Air Conditioning Project
Mr. North stated that there was comparatively little to report since the project is out to bid. The Public Building Committee did not take up this project at their last meeting. Mr. Sawitzke stated that the Eno bids are coming in next week.
Mr. Henault said that he had heard the Fire Marshall had some concerns about the project. Mr. Sawitzke explained that there were some code issues to be dealt with. He noted that in their design considerations for this project, they discovered that the building was almost non-combustible. It was a nice surprise, but in terms of construction, it presents some challenges. He added that they hope to get something going this cooling season.
PROPOSED CAPITAL PROJECT UPDATE
Mr. Henault referred to the letter from Town attorney, Bob DeCrescenzo, (Addendum II) which was handed out to each member. It outlined " . . . the steps available to the Town after a negative report was issued by the Simsbury Planning Commission . . . concerning a proposal by the Town to renovate a certain athletic facility at Simsbury High School including the addition of lights and expanded bleachers . . . ". Mr. Henault noted that the BOS voted to pull it off the call for May 4th. He stated that he had talked with First Selectman Vincent, and his desire, as well as that of BOE Chairman Hogan, is that a small committee be formed consisting of two members from the BOF, two from the BOS and two from the BOE in order to figure out how to move this thing back forward soon
This committee will seek input from various constituents within the Town, including Planning, Zoning and the Economic Development Commission.
Discussion ensued as to why the Planning Commission may have issued the negative report. Dr. Townsley noted that there were two issues: 1.) the lights and 2.) the environmental aspect of the plan - not sufficient study of an alternative location which would have less impact on the environment. Mr. Henault said that they have to find a way to move the project forward to a Special Town Meeting that includes lights at the original site. Mr. Mandell stated that the First Selectman and Selectman Garrity will be on the committee. Mr. Henault stated that he would like to be one of the BOF members on the committee. He added that the fact the BOF wants to unanimously move this on to Town Meeting speaks volumes for how they feel about the project.
BUDGET TRANSFERS
Ms. Fitzpatrick moved to approve the budget transfers as outlined on the revised April 12, 2004, memo from Kevin Kane (Addendum III). The motion was seconded by Mr. Askham and carried unanimously.
Mr. North moved to approve the debt service budget transfers as outlined in the Finance Director's memo of April 6 (Addendum IV). The motion was seconded by Ms. Fitzpatrick and carried unanimously.
REVIEW CALENDAR
Mr. Henault stated that the next meeting will be on May 18th, after the referendum, to set the mill rate. By Charter, the mill rate has to be set within five days from the date of the referendum. He wondered whether the late meeting on May 18th might not work for some members. No one cared to change the scheduled meeting.
Mr. Henault stated that he would be out of town on business for the June 15th meeting. He wondered if the remaining members would like to change the meeting date. Ms. Fitzpatrick added that High School graduation is on Tuesday, June 15th and that she will not be able to make that meeting either. The remaining members decided to keep the scheduled meeting on June 15th.
OTHER BUSINESS
Ms. Fitzpatrick informed the members that the Simsbury Land Trust put a request before the BOS for a contribution toward the development rights for Tulmeadow in the amount of $100,000.00, and that request was approved by the BOS Monday. It will be referred to the BOF.
Mr. Henault asked Mr. Kane to be sure that all the BOF members get a copy of a memo from John Loomis to Tom Vincent dated March 31st.
ADJOURNMENT
Mr. North moved to adjourn the meeting at 7:16 P.M. The motion was seconded by Mr. Askham and carried unanimously.
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Paul Henault, Chairman Roxanne Farrell, Clerk
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