These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
OCTOBER 19, 2004
SPECIAL MEETING
1. CALL TO ORDER
The Special Meeting of the Board of Finance was called to order at 7:00 PM in the South Conference Room at Eno Memorial Hall. The following members were present: Chairman Paul Henault, Peter Askham, Candace Fitzpatrick, Nicholas Mason, and Kevin North. Also present were Board of Education Business Manager David Holden, Finance Director/Treasurer Kevin Kane, Public Building Committee Chairman Richard Ostop, Town Engineer Richard Sawitzke, Superintendent of Schools Diane Ullman and other interested parties.
2. APPROVE MINUTES
· June 15, 2004 Regular Meeting
Ms. Fitzpatrick moved to approve the minutes from the June 15, 2004 Regular Meeting. The motion was seconded by Mr. Mason and passed with three (3) yes votes and two (2) abstentions (Ms. Fitzpatrick and Mr. Henault).
· August 18, 2004 Special Meeting
Ms. Fitzpatrick moved to approve the minutes from the August 18, 2004 Special Meeting. The motion was seconded by Mr. North and passed with three (3) yes votes and two (2) abstentions (Ms. Fitzpatrick and Mr. Henault).
· September 23, 2004 Special Meeting
Ms. Fitzpatrick moved to approve the minutes from the September 23, 2004 Special Meeting. The motion was seconded by Mr. North and passed unanimously.
Mr. Mason moved to amend the agenda to discuss agenda item #3 next. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
3. FINANCIAL REPORTS
· Board of Selectmen
Mr. Kane handed out his memo and worksheet for three months' financial performance ending September 30, 2004. It stated, "Due to the Assistant Finance Director vacancy which was filled on September 15th along with providing assistance to the Board of Education in preparing and adjusting their June 30, 2004 financials for the Audit, the revenues for the three months ended September 30, 2004 have not been fully entered into the Town's accounting system at this time." Mr. Kane also noted that areas of concern the Town will need to carefully monitor throughout the fiscal year are legal fees, police overtime and snow removal overtime.
Mr. Kane further noted that John Wilcox has joined the Finance Department as Assistant Finance Director. He will be attending a BOF meeting soon. Mr. Kane added that Mr. Wilcox is a fine addition and very qualified.
In response to Mr. Askham's query, Mr. Kane stated that the expense side for Simsbury Farms is higher than last year.
Mr. Kane then handed out and discussed a cash flow report from August 4, 2003 by O&G on the High School Project. He also handed out his October 19, 2004 memo, "Approved but Un-Funded Capital Projects".
· Board of Education
Mr. Holden handed out his first quarter budget analysis for the 2004-05 fiscal year. Mr. Holden stated that it is still very early in the fiscal year and that they are basically on target on the revenue side with the exception of the VCS Grant since they're getting a little over $300,000 more than they had projected. His report projected a surplus of $21,300 at this point in time. The Board members and Mr. Holden continued to discuss the report at length.
Ms. Fitzpatrick moved to discuss agenda item #2 next. The motion was seconded by Mr. Askham and carried unanimously.
4. REPORT BY THE PUBLIC BUILDING COMMITTEE ON THE STATUS OF ONGOING CAPITAL PROJECTS
Mr. Henault thanked Mr. Ostop and Mr. Sawitzke for joining the meeting. Mr. Henault explained that the BOF has to have a complete picture of where the Town is on Capital that's already been authorized as they move into the new planning process.
Mr. Ostop stated that the PBC is handling seven projects with a total value of about $40 million.
Mr. Sawitzke referred to the "Projects' Status Report" which the PBC had asked him to put together. He passed out copies to the BOF members as he gave an overview. He remarked that they do expect some CL&P energy grants for several of the projects because of energy-efficient lighting, variable speed drives on motors and things of that nature.
· Simsbury High School Track & Stadium Field Improvements
Mr. Ostop stated that this project is brand new with no money expenditures yet other than $194.00 for advertising costs. He confirmed that this is a separate project from the High School Renovation project. He noted that an architect has not yet been chosen. He explained that the PBC chooses the architect and negotiates a contract. Then the contract goes to the BOS for approval.
· High School Auditorium
The architectural firm of C. J. Lawler Associates was selected, contingent on concluding contract negotiations. Mr. Henault asked how the construction manager would be chosen. Mr. Ostop stated that there was an RFP on that. Mr. Henault surmised that it would not roll over in with the existing O&G contract. Mr. Ostop answered that at this point they cannot say that because the PBC will talk with the architect as to the best way to handle it. He added that they might want to negotiate a side contract with O&G to make this part of the construction project. That way, the company already on site will have all the responsibility. Mr. Henault stated that he would be hesitant to do anything further with O&G until the plumbing issue is resolved. Mr. Ostop countered that the immediate problem
with that is not O&G's but the architect's and the trade contractor's. Mr. North stated that this project is big enough to separately bid. He added that there is no need in his mind to have to interface with O&G.
· High School Additions and Renovations
Mr. Ostop stated that when they went out for bid, the bid came in for far less than they had anticipated. The project total cost ended up at $33,307,165 which is for Phase I of the SHS Addition and Renovation project. He stated that they appear to be on schedule.
Mr. Ostop reviewed the worksheet which Mr. Sawitzke handed out for the requested release of appropriated funds, revised 10/19/04 (Addendum I). The total requested release of appropriated funds equaled $1,629,759. Mr. Sawitzke provided further, detailed explanations of the items on the worksheet. A lengthy discussion ensued.
Mr. Kane stated that he thinks, especially with the doubts raised on the previously stated reimbursement rate, that O&G needs to go back and update their August 4, 2003, "Simsbury High School Total Project Cost Cash Flow Report". Mr. Ostop offered to ask them to provide this.
Mr. Henault made sure that everyone understood that any additional authorization has to come back to the BOF. Mr. Ostop agreed and added that at this time the PBC is just looking to the BOF for advice, for direction. Mr. Henault stated that he would want the BOF to look at all the other projects as a whole before deciding what they might approve. Mr. Sawitzke cautioned that there are four items for which the decision pretty much has to be made by December. That's the site lighting because it has to be ordered to be coordinated with the parking lot reconstruction, the VAT asbestos in order to complete the renovation of the space which is scheduled for next summer, the additions to the Social Worker Offices and the addition of a Shower in the Official's Toilet.
Mr. Ostop stated that prices today are completely different than when they went out to bid. He added that anything with metal in it has quadrupled in price. This would include all the poles for the site lighting.
Mr. Ostop stated that the major portion of the project, the addition, is done. He added that, unfortunately, no one can tell what they'll find during renovations. Mr. Sawitzke interjected that the high school is a pretty simple building with a rectangular frame. He added that they have already done one floor and actually had no surprises.
· Eno Air Conditioning (Phase 1)
Phase 1 of this project is to air condition the auditorium exercise room and lobby and has a total budget amount of $555,999.96. The project status report stated: "The engineering firm of ATA Consulting Engineers was retained for design and the construction contract was awarded to the low bidder, H.P.J. Construction Co., by the PBC."
Mr. Sawitzke stated that the Fire Marshall has agreed to let the Town move ahead with Phase 1, but he has indicated that there have been some code issues in the building which must be addressed before proceeding with Phase 2. Mr. Sawitzke added that he has told the Fire Marshall that he will look into the possibility of a sprinkler system. He also noted that Eno Memorial Hall is built "like a fort". Everything is concrete and steel, and that makes renovation expenses higher.
· Police Station Renovation
The project status report stated: "Work is progressing through 2 major phases in order to keep the Police Department operational. The new Dispatch Center, evidence rooms, cell block, armory and sally port are planned for completion this year; with the renovated offices, records room and training room scheduled for the first half of 2005." Mr. Sawitzke handed out the "Simsbury Police PCO List", and there was considerable discussion on change orders.
· Sewer Treatment Plant Renovation
Mr. Askham asked Mr. Sawitzke if the BOF could get an accounting at their next meeting of how bids are coming out. Mr. North expressed concern about cash flow because of portions of the project that haven't been reimbursed yet.
Mr. Henault thanked Mr. Ostop and Mr. Sawitzke as well as the whole PBC. Mr. Sawitzke extended an offer to give the BOF members tours of some of the buildings.
Mr. Mason moved to amend the agenda to discuss agenda item #5 next. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
5. CALENDAR FOR NOVEMBER AND DECEMBER
Mr. Henault stated that he will be out of town on November 16th, the date of the next scheduled BOF meeting. After checking their calendars, the members decided to change the meeting to November 15, 2004 at 7:00 PM.
Ms. Fitzpatrick moved to amend the calendar to change the November meeting from 7:00 PM on the 16th to 7:00 PM on the 15th. The motion was seconded by Mr. Mason and carried unanimously.
6. FISCAL YEAR 2005/06 BUDGET PLANNING, Discussion and Possible Action
Mr. Henault introduced the subject and then turned the meeting over to Dr. Ullman. She stated that her approach to the budget this year would be a very cautious one. She is asking everybody to look at their budgets as if the money that they have is the money they will have. They have to look at any new needs and existing needs and try to use their existing resources differently. They are trying to figure out over the long term how they can manage the Special Ed budget without continually looking for increases. Dr. Ullman added that they are trying to do some very creative things. She is not looking for people to propose new positions but to consolidate what they have and meet some of the existing needs. She cautioned that the unknown here is the negotiations, and stated that the BOE is trying as hard
as any board she's ever seen to get a very reasonable settlement. She added that it would be reasonable in the eyes of the BOF as well as the BOE. She stated that she is working very hard with the administration to try to look differently about the use of their existing resources, to try to meet some of the needs that were left outstanding last year (including class size) and also to think about not adding to programs. She added that it is not the economic climate to grow programs.
Ms. Fitzpatrick asked Dr. Ullman what her time frame was as to when she would have a better sense of what her numbers are going to look like. Mr. Holden answered that it would be mid-December. He noted that they are in arbitration with both teachers and administrators, and that that process will play out during the month of November and into the middle of December.
Mr. Askham asked Mr. Kane to provide information at the next BOF meeting re what's available for future capital pursuant to the BOF debt policy.
7. ADJOURNMENT
Mr. North moved to adjourn the meeting at 9:04 PM. The motion was seconded by Mr. Askham and carried unanimously.
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Paul Henault, Chairman Roxanne Farrell, Clerk
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