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EAST LYME BOARD OF FINANCE |
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Scroll down or click the bookmarks to see all the submitted minutes for meetings held in March
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WEDNESDAY, MARCH 12, 2008REGULAR MEETING MINUTES 7:00 P.M. EAST LYME TOWN HALL
Members Present: Steve Larcen, Chairman (by Tele-Conference) Jeffrey Langan, Secretary Jill Carini
Members Absent: Bob Jones Allan Taylor
Also Present: Paul Formica, First Selectman Anna Johnson, Finance Director Brooks Gianakos, Site Engineer – New England Communications Systems, Inc. (NECS) Tony Ambrosino, Sales Manager - NECS Myron Polulak, CEO - NECS Richard Morris, Fire Marshal
I. Call Meeting to Order: At 7:00 p.m. Secretary Langan called the meeting to order. He stated that today at approximately 4:30 p.m. he received a voice mail from Mr. Taylor stating that he and Mr. Jones could not attend this meeting tonight, and therefore there will not be a quorum. As reason for not being able to attend the meeting Mr. Taylor made reference to various issues at previous meetings of the Board of Finance, which to the best of Mr. Langan’s knowledge have not been brought to the attention of the appropriate authorities so they could be resolved. These issues are now being used as an excuse by Mr. Taylor to not attend this meeting and thereby preventing the business of the Town of East Lyme from being conducted. This would have included a proposal to upgrade the communication system for the town. He apologized to all who are here for various issues that were scheduled. He stated that they would go forward with the non-action items that are on the Agenda
II. Pledge of Allegiance: The pledge was observed.
III. Approval of Minutes:
a. Regular Meeting February 13, 2008 b. Special Meeting February 21, 2008 c. Special Joint Meeting with Board of Selectmen February 27, 2008 to hear proposed 2008/09 Board of Education Budget
**Due to Lack of Quorum there was no action taken on Item III.
IV. Delegations:
Mike Schulz, Lovers Lane stated that he wanted to ask the public to start giving the boards their opinions on the budgets that have been brought forward to the Board of Finance. We need more people at these meetings with their thoughts.
Joe Mingo, Boston Post Road, came to speak of economic issues, but now there is no quorum. He stated that Mr. Langan was authorized as Acting Chairman to send a Constable to their houses and drag them kicking and screaming to this meeting. His son in law is in the restaurant supply business. Wanted to know if budgets are on the agenda tonight. He will hold that conversation until the budget is on the agenda.
Jon Drabik, 18 Drabik Road, he is disgusted, he was on Board of Finance for 4 years he missed one meeting to go to father’s funeral. He encouraged Mr. Taylor and Mr. Jones if they are in Town to grow up.
Rocco Tricarico, 18 Rose Lane, came here to support and listen to the agenda. Came for the 1st responders request and to support filling the vacancy on the Board with Liz Farley who is in the audience tonight and was endorsed by the Democratic Town Committee at their last meeting. The public may not know that the Board is a member short due to Izzy Schwartz’s resignation. There were two meetings called prior to this meeting that Mr. Taylor and Mr. Jones have missed, because they do not want to fill that vacancy with any Democrat even though that is a Democratic seat. Because of their actions that are not in the best interest of the Town we should start a recall and there should be repercussion of these actions.
V. Reports:
a. First Selectman b. Finance Director
*There were no reports by the First Selectman or the Finance Director
VI. New Business:
a. Radio Upgrade Presentation
Richard Morris thanked all of the Fire Departments for showing up and supporting this issue. It is unfortunate that this business isn’t going to be conducted. We have been working on this system to try to replace our communication system within the community. With the broadband these meetings would be on live on Channel 22. This would also give us a link to other communities at a fair cost to the community. NECS has prepared a power point presentation for the Board and the Public with the proposal for what they feel is an effective radio system for East Lyme.
Tony Ambrosino Sales Manager stated that their company is in Windsor, CT, they have 52 employees, have a long time relationship with East Lyme. There is poor coverage, it is 20 year old technology, they can’t get parts for it anymore and it is no longer supported by Motorola, there is a clear need for improved communications. Field Coverage tests were performed to develop scenario for proposal for an upgrade in communications. A copy of the NECS presentation of their proposal is attached as Schedule A.
Brooks Gianakos, Site Engineer discussed the setup of the transmitter sites..
Tony Ambrosino discussed the pricing of this system and what was included in the prices.
Jill Carini asked if this was a lease.
Mr. Formica stated that the Board of Selectmen sent this to the Board of Finance suggesting we find a way to purchase this. It could be done two ways, either by bonding or by leasing. The Board of Selectmen would like the Board of Finance to decide what option is best.
Jill Carini asked if there is a breakdown in the equipment, if it is a lease, is it automatically replaced, as opposed to if we own it, then we would have to replace it ourselves.
A representative from NCES stated that would be included in their service contract.
Jill Carini asked if the Town would be responsible for replacing anything after one-year warranty unless it is covered under the service contract.
The representative stated that was correct.
Mr. Larcen asked Mr. Morris about the allocation of the portable units.
Mr. Morris explained that they asked all of the departments what their needs would be and he discussed the allocation of those units to all of the departments.
Mr. Langan asked Mr. Morris to give them a breakdown of how they are to allocate the units.
Mr. Morris stated that he would research that for them, and he does have that information.
Mr. Larcen asked how common it is to have the five-year warranty on the radios.
The NECS representative stated that was standard. All of the subscribers go to Motorola’s depot for repair and it is very costly, so the warranty is offered and NCES will come on site and triage the radio and determine what the problem is. Motorola covers repair of radio, but not the triage of the radio to determine problem.
Mr. Larcen asked what our current service plans costs.
The NECS representative stated that our current service plan costs $6,100 annually.
Mr. Larcen said he looked at the budget and it showed almost $12,000.
NECS stated there were two service contracts that equal almost $12,000.00.
Mr. Morris stated that $6000.00 of that is for an outdated 911 recording system that they have and that is why that shows $12,000. Right now each individual department maintains there own radios by themselves. The cost of this new service plan included all of them together.
Mr. Larcen asked what capacity we would have for expansion as time goes on.
The NECS representative stated that as far as consoles there is a lot that could be expanded, the outlying system could be added as frequencies allow. Portables can also be added.
Mr. Langan asked what the typical response time would be if there was a failure in the system.
The NECS representative stated it would probably be an hour or an hour and a half. Response time is quick.
Mr. Langan thanked the NECS representatives.
Mr. Morris stated that he hopes all objectives were met, and they were looking forward to the Board’s decision.
b. Interview Candidate(s) for Vacancy and fill Vacancy on Board of Finance c. Discussion concerning the proposed 2008/09 Budget (materials to be distributed at meeting) d. Discussion concerning appointing an Auditor for the 2007/2008 fiscal year
*There were no interviews and there were no discussions regarding the Budget or the Auditor
VII. Unfinished Business:
a. Follow-up with Auditor concerning June 30, 2007 Financial Statements and additional services bill b. Budget transfers $13,500 for additional Audit Services c. Special Appropriation $2,500 – Youth Services – reimbursable from 501(c)3 closeout d. Special Appropriation $6,250 – Youth Services-Special Grant Program
** There was no action or discussion on Item VII.
VIII. Public Discussion:
Joe Mingo, Boston Post Road, asked if the 911 system would be able to tell if the Water Department pumps system failed.
Mr. Morris stated that is a separate computer system that is already separate to begin with. That does not interface with any of the 911 radio systems.
RoseAnn Hardy, Board of Selectman stated that they have heard this proposal 3 times, and there have been some modifications. At this point we are at a critical point and thinks we really need to get the money for this and get this done. There are several areas in Town where she loses reception on her phone. She wants the boards to work together to make this happen. She also stated that her and Rocco Tricarico left the meeting to go and see if they could get two additional people to get them to this meeting so there would be a quorum. First they went to Mr. Taylor’s house to ask if he would come to the meeting because they felt it was very important that this be acted on this evening. Mr. Taylor told them he had no intention of coming to the meeting under any circumstances. They then went to Mr. Jones’ house to inquire if he would come to the meeting and his home was dark and there was no answer at the door. In her 23 years on the Board of Selectmen she has never seen this kind of action. This is 3 times that they have intentionally not come to a meeting where important business is to be conducted for the benefit of the entire town. There is a 30-day timetable for the Board of Finance to elect someone to take a position. She hopes this isn’t a ploy to force that appointment to the Board of Selectmen where there is a Republican majority. In this Town we have always been fortunate to have quality candidates. She believes the Democrats have a candidate with very high qualifications and the Republicans are also interested in appointing a candidate with fine qualifications. Both of them have served in other areas of the Town. To divert the business of Town Government is shameful.
Rocco Tricarico echoed Mr. Hardy’s comments. He served on this board for 4 years. The Town’s best interests were always his intention. This was intentional and the intent was to send it to the Board of Selectmen. He is hoping that the Board will do the right thing relative to this shameful act. Mr. Taylor slammed the door in his face basically when he asked for him to come. He lives down the street he could have walked here. He made it clear that he would not come unless he got his way. He is putting the voters on notice that if he doesn’t get what he wants he won’t perform his duties he was elected to do.
IX. Board Comments:
Paul Formica thanked the presenters for coming. He thinks this is a very important need of the Town. He also agrees with Ms. Hardy as far as the dispute. He thought it could be resolved as an internal Board of Finance matter. He will take the steps to solve this problem. He has made arrangements to meet with the chairs of both the Republican and Democratic Town committees so we can put this behind us and move forward and do the business of the community. Mr. Formica apologized to those who came out and could not see the business conducted.
X. Adjournment:
Mr. Langan adjourned the meeting at 8:05 p.m.
Respectfully submitted,
Karen Miller Galbo, Recording Secretary Pro-tem
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SPECIAL MEETING BUDGET REVIEWS Monday, MARCH 24th, 2008 EAST LYME BOARD OF FINANCE
Members In Attendance: Steve Larcen, Chairman Jeff Langan, Secretary John Birmingham Jill Carini Bob Jones Allan Taylor
Also In Attendance: Paul Formica, First Selectman Anna Johnson, Finance Director Melissa O’Brien, Youth Services Director Meg Parulis, Planning Director John McCulloch, Tax Collector Bill Scheer, Town Engineer Mike Giannattasio, Director of Public Works Dick Morris, Fire Marshal
Absent: No One
A. Call Meeting to OrderChairman Larcen called this Special Meeting of the East Lyme Board of Finance to order at 6:32 PM.
B. Pledge of AllegianceThe Pledge was observed.
C. DelegationsMr. Larcen called for Delegations.
There were none.
D. New BusinessBudget Reviews – FY 2008-2009Mr. Larcen explained that the procedure that they have been following is that they are not looking for a complete presentation of the budget; if there are special considerations or items that should be brought to the Boards’ attention; please do so. The Board will then ask any questions that they have.
¨ Youth Services (422) – Melissa O’Brien, Youth Services Director, Linda Fecteau, Former Director Ms. O’Brien, Youth Services Director said that there was a deficit in the payroll area however the new Program Director came in at a lower rate so they were able to move some money around to cover it and their budget has basically stayed the same as it is.
Mr. Taylor asked Ms. O’Brien what her understanding was regarding fundraising and monies if/when they became a Town agency. Ms. O’Brien said that she understood that they would still do fundraising.
Mr. Taylor asked if there was a shortfall last year and what the budget was supposed to be. Ms. O’Brien said that she had originally thought that they took in less in program fees but today she heard that they actually did take in $30,000 more. This means that they took in $61,000 rather than $30,000. She said that she was not aware that they had three different areas to record revenues.
Mr. Larcen asked Ms. Johnson to identify the three (3) revenue accounts. Ms. Johnson identified the three accounts – bureau grant, youth services fees and misc. revenue – youth services.
Mr. Taylor asked if they could have a copy of the update showing the $31,000 in revenues. Ms. O’Brien said that they could look at her copy as she had just received it that day and only had the one copy. Ms. Johnson said that she would review this new information and get them an updated copy.
Mr. Taylor said that his understanding was that when they became a Town department that the Administrative Assistant position would be eliminated – he asked if that was just done now. Ms. O’Brien said that her understanding was that they would try to utilize the Parks & Recreation Administrative Assistant but that did not work out for them so they had to have their own.
Mr. Larcen, in looking over the revenue accounts suggested that the updated information be presented to them at deliberation time. Ms. Johnson said that she is looking in to them and that she would have that information for them.
Mr. Larcen suggested that they make a motion to jump down to address items d. and e. under Unfinished Business as those appropriations are for Youth Services.
**MOTION (1) Mr. Taylor moved that they now address items d. and e. under Unfinished Business as those special appropriations have been requested by Youth Services. Ms. Carini seconded the motion. Vote: 5 – 0 – 0. Motion passed.
¨ Planning Department (117) & Planning Commission (129) – Meg Parulis, Planning Director and Lisa Picarazzi, Planning Commission Chairman Meg Parulis, Planning Director said that there was some re-organization as the GIS was in IT and it is now with Planning at the same rate that it was before. Some operating expenses have also been moved to her budget so that they are all in one place.
Mr. Jones asked about the Land Use Coordinator and who that person is. Ms. Parulis said that she is Michele Crowley and that she is a quasi Asst. Planner who acts as a research asst. for spec projects, reviews permits and tracks subdivision applications date wise.
Mr. Jones asked if there was a need for that person. Ms. Parulis said absolutely, as she is swimming in work.
Mr. Taylor asked if this is the individual that was hired originally to do the GIS. Ms. Parulis said no and explained that this is a part time position that she originally had. Then the land use coordinator and conservation enforcement officer position merged. They had someone that was out of college who did get involved in Conservation and the GIS and when she left they had someone in Engineering who was interested in that position so they split the job back out and Engineering now does the Conservation enforcement officer work part time and Michele is the land use coordinator. She said that they did attempt to add the GIS to this position but they were not able to create the GIS/Planning tech position so this has re-shifted the work load to accommodate what needs to be done.
Mr. Larcen said that he had a question on the capital request. Ms. Parulis explained that she was able to hook up with someone from UCONN regarding what they might be able to do to help with the POCD update. She said that she has their proposal with the scope of services for them to look over. The proposal aligns itself with what Art Carlson is doing in-house on the Open Space Plan and also reduces a $50,000 cost to $30,000. She said that she has $5000 left from the Open Space Plan leaving a net cost of about $25,000 for this year. If they did this, they could eliminate the $15,000 request for the next year. She said that they normally have a $10,000 GIS request which might also be alleviated as she sees this as an incredible value. She said that she has heard from various people that they should do the POCD update like they did the last time – in-house – but the last time they had the Yale Charrette and that cost $25,000 so this is the same type of thing.
Mr. Larcen asked about line item 239 – GIS implementation for $5000 and if that was what she was talking about. Ms. Parulis said no – this is solely within the capital budget that she is speaking about for this study.
Ms. Johnson explained that the CIP shows a POCD request for $20,000.
Mr. Formica explained that in Capital that the item that Ms. Parulis is referring to was not pushed forward by the Board of Selectmen.
Mr. Jones said that he wanted to know what this funds. Mr. Formica explained that in his weekly department meetings that he has determined what the workload is of the various departments and that he would like to have specific dollars and what they relate to and that he wants a more exact accounting of the dollars and what they would be used for.
Mr. Larcen asked if the GIS is also in the capital and not funded. Ms. Parulis said that it is looking that way. She added that with the $25,000 that she is requesting that they can do a lot of things.
Mr. Larcen asked when the POCD is due. Ms. Parulis said by the end of calendar year 2009.
Mr. Taylor said that the GIS in most other Towns comes through the Assessor’s office – Mr. Formica said that he is also working with COG on a regional GIS deal that would realize efficiencies and hopes to have more information for them on this.
Mr. Taylor said that his concern is that he did not want to see it duplicated anywhere. Ms. Parulis said that they developed the GIS system for the whole Town so there is no duplication in-house. She said that she is also working with Regional Planning for some possible future savings on this.
¨ Planning Commission (129) – Meg Parulis, Planning Director and Lisa Picarazzi, Planning Commission Chairman Mr. Taylor asked about the clerical that was reduced and then increased.
Ms. Parulis said that they had gone to 12 meetings per year from roughly 24 and are now back up to over 20 so the line item needs to be increased back to where it was. She added that they had increased the printing and supplies costs as they would have to print up some copies of the POCD for the public who could not access them by computer.
¨ Tax Collector (103) – John McCulloch, Tax Collector Mr. Taylor said that the increase is 2.65% which is close to the COLA. Mr. McCulloch said that there is a slight decrease due to the fact that they have newer people in the positions due to retirements.
Mr. Larcen asked about the maintenance contract for the tax collection software program. Mr. McCulloch said that they will have a major upgrade that will not change the maintenance and that they will be given a server for no charge.
Bill Scheer, Town Engineer and IT Dept. Head passed out information on the current software and the upgrade. He said that the old system was DOS (disk operating system) based and that the new one is windows based. The old server is also 10 years old and it needs constant tech support to keep it going. Walsh has given them a multi-year program to pay for it.
Mr. Birmingham asked if the new system will save man-hours. Mr. McCulloch said that it would provide them with information much faster which would mean that they could serve the public faster. Mr. Scheer added that the printing errors would be minimized as they now have to literally ‘baby-sit’ the printer.
Mr. Larcen asked where the $9095 comes from for this, or where do they intend for it to come from – Mr. Formica said that they are still working on this and that the sense is that they will be able to find it in the current budget from efficiencies that would be created.
Mr. Larcen asked about printing the tax bills in-house. Mr. McCulloch said that they would be able to do that and to save the $6000 that they now spend to send them out.
Mr. Larcen asked if that $6000 line item could be adjusted. Mr. McCulloch said that he thought that it could. He said that they would not be ready to do the July billing but that they would probably be set to do the December supplemental billing.
Mr. Jones asked about the $1600 for the part-time clerical and if that was for the July tax bills and also asked what the difference was between the December and July peak periods for tax bills. Mr. McCulloch said that the December time frame does not have the motor vehicle taxes while the July time frame does. They usually get a student from the school to work with them for a month in the summer. They will have to find a new one this year as the one that they have had, has now graduated and moved on. They try to find someone who is interested in doing something like this for a career.
Mr. Birmingham asked why they do not have a part-time clerical person listed for 2008. Mr. McCulloch said that it should be there and that it is a mistake that it is not listed.
Ms. Carini asked how the office has been impacted by the recent increase in foreclosures. Mr. McCulloch said that at the end of February that there was $938,000 outstanding in unpaid taxes and that he was worried however; this month has been a strong one and they have collected over $300,000 against that. For the long-term it would just be speculation but at this point the reval and economics have impacted greatly those who are on fixed incomes.
Ms. Johnson noted that she had printed a report as of March 20, 2008 and that tax collections are down by about $193,000 from what was projected and there was still a week and a half to go this month. Mr. Larcen asked for a figure on the foreclosures for an update at a later time.
¨ Engineering (105) – Bill Scheer, Town Engineer Mr. Scheer said that he would answer any questions that they might have.
Mr. Jones asked about line 314 – overtime and if it was due to after hours or before hours inspections. Mr. Scheer said yes and added that it also includes weekends sometimes as the person is a union inspector.
Mr. Jones asked if there was any way of decreasing that. Mr. Scheer said that it is cyclical and that it would be on target for this year.
Mr. Jones asked about stormwater management for $6000 – line item 029. Mr. Scheer said that the State has mandated the mapping of the outlets and testing of the water. He said that they have been using cheap labor such as summer help to get this done. However; this funds a mandate by the State that they did not ask for.
Mr. Langan asked if they charge the contractors for the inspections that require the overtime inspection coverage. Mr. Scheer said that they do not.
Mr. Langan asked what portion of the overtime is for those inspections. Mr. Scheer said that it was difficult to break out as some are Town projects such as sidewalks and it is not prudent to try to get the people pouring them to go home when the Town work day ends.
¨ Information Technology (109) – Bill Scheer, Dept. Mgr. IT Mr. Scheer explained that there are 41 computers in Town Hall and 21 remote clients who use our software. The Police have 12 computers and 10 laptops. There are about 100 computers with 41 in the Town Hall and one server in the Police Department. He said that they are due for an upgrade as the Hardware age is 10 years and the software age is 12 years.
Mr. Larcen asked what percentage of computers needs to be replaced on an annual basis. Mr. Scheer said that he would go over that with the capital monies that he is requesting. He said that he has a list of 12 that can be cone for the $10,000 in capital that is being requested and that a good number of the computers are past their age. He passed out a list and added that others just fail and have to be replaced and that they would push the list out further.
Mr. Larcen asked about the spreadsheet (in Building Maintenance) and its purpose and if it was to show monies that were being purported to other departments. Mr. Scheer said that the net difference is $185.
Mr. Larcen asked that they get that information to them at a later time prior to deliberations.
Mr. Scheer said that in capital there is $10,000 that is for the computer replacements and that the $12,000 is for the server upgrade. They have five (5) servers in the building and the major one is 10 years old and the software is 12 years old and they cannot get updates easily. It also fails a lot and they have found that they cannot download or send attachments. They would like to upgrade to the new email address and would need to upgrade the hardware and software. They are requesting the $12,000 to do the upgrade. They need $30,000 but have asked for $12,000.
Mr. Langan said that he understands that the radio upgrade system comes with wireless and asked how this would affect them. Mr. Scheer said that he is trying to meet with the vendor to get that information and should have it in the next few weeks.
Mr. Taylor said that there are a lot of government controls on e-mails now and asked if we are in compliance with this. Mr. Scheer said that for the most part that we are. The rules on email and the time that they have to be saved are relatively new.
Mr. Langan asked about the IT Supervisor. Mr. Scheer said that is Carmen Ames and that her salary is in the budget and that he is not included in this budget.
¨ Public Works (317) – Michael Giannattasio, Public Works Director; Chuck Holyfield, Highway/Sanitation Superintendent Mr. Giannattasio said that Public Works – Highway & Sanitation spans the entire Public Works Department covering supervision plus 25 employees.
Mr. Larcen asked that they draw attention to any item that has changed. Mr. Giannattasio noted that line 224 – road reconstruction and repair has increased. Line 233 – groundwater monitoring is a State requirement that they have to test the transfer station groundwater. Also, last year fleet maintenance was $152,800 and it is now $174,200 because they have an aging fleet. 100 vehicles are serviced by 2.5 mechanics. They do not service the large fire apparatus vehicles – those are under contract. They have an aging fleet – the oldest dump truck is a 1979 and the next oldest to that is a 1981. The money for repair used to be in Building Maintenance but it has been moved to their budget (line 221) so that they can have better control over it. He said that they also want to keep the ‘swap out’ system going on the Police vehicles at two per year. They do not do any tire repairs themselves, they have a tire contractor who comes in and does them. They also have a radio and lights person that comes in and performs those services. He noted a chart that he had brought on the fleet age and said that they would need to spend over $1M to have the fleet updated to where it should be. They were not funded for three budget years and they figure that they need around $300,000 per year for their items and for other departments’ items. If they can change out the vehicles and equipment on a good time schedule – they can reduce the cost of the repairs and get more for them rather than have them go to the scrap yard.
Mr. Larcen asked what years they were not funded. Mr. Giannattasio said that information is on the chart - it was FY2000, FY2003 and FY2005.
Mr. Taylor said that line 311, Regular payroll – Highway jumped by $95,000 and asked what the explanation was for that increase. Mr. Giannattasio said that they are seeing actual and that there may have been multiple guys out on comp time also.
Mr. Taylor noted that it is a very close budget and asked about the fuel increase of 30% versus the 15% that was recommended by the State. Mr. Holyfield said that he had asked the departments what they planned on doing for a traveling estimate and figured in the increase of a garbage truck plus the police detective has a vehicle now and they think that it might go higher and that is where this estimate and these numbers come from.
Mr. Larcen asked about TAR – Town Aid Roads and as it is money from the State why it was kept in two separate line items. Mr. Giannattasio said that this is traditionally how it is done as it is offset by State funds. He added that LoCIP reimburses when the projects are done and that it includes more than just road projects.
Mr. Larcen asked what they would do if the State increased the TAR funding. Mr. Giannattasio said that in the past they have put it towards capital projects. Now they are putting it towards some current projects as it helps to reduce some of the cost of the bigger projects.
Ms. Johnson said that the TAR Grant last year was increased and that it may have been increased only on the revenue side and not the expense side and that they would need to fix that. She said that she would look into it.
Mr. Formica said as a point of clarification that the Appropriations Committee is coming out with figures this week Wednesday so the numbers might go higher – they will have to wait and see.
Mr. Langan asked about the Highway overtime increasing but not the Storm overtime – why? Mr. Giannattasio said that they really do not have much of an idea on the storm overtime – line 315 and that they just hold the $35,000 there as it is a best guesstimate. The Highway overtime – line 314 is based on some additional things such as the transfer station being open on Saturdays and the clean-up after the Light Parade, etc.
Mr. Langan asked if they do truck maintenance on overtime. Mr. Giannattasio said yes – on the ‘hot’ trucks that they need to have on the road – such as the garbage trucks – which need to be worked on over the weekends. They also do the Light Parade clean-up so that the garbage won’t blow around the downtown.
Mr. Langan asked about the bulky waste pick-up – line 296. Mr. Giannattasio said that if the $220,000 is approved that they would set up a different system.
Mr. Larcen asked if it supports a fee. Mr. Giannattasio said that it does as the cost would be attributed to the user rather than across the board. He said that they have heard that people do not mind paying for the bulky items to be dropped but that they have trouble getting them to the transfer station. They need to work out a number of things on this.
Mr. Larcen noted that represents a net unfavorable change of $55,000. Mr. Formica said that they hope to restructure this and to address that at that time. Mr. Giannattasio said that they are looking to make it all work and that a lot of things work together on this.
Mr. Jones asked about the street lights and if we were buying them ourselves. Mr. Formica said that it is something that New Haven has been successful with but that we have not addressed it here, yet.
Mr. Jones asked about Animal Control Mr. Formica said that the program is expected to be a 50% split with Waterford – Waterford maintains the facility and we have the vehicle and the maintenance of it. The last vehicle was donated by Dominion. The current animal control officer is from Waterford.
Mr. Taylor asked about SCRRRA tipping fees which are down this year. He said that he recently read that they reached capacity and are not charging back and asked if that is so. Mr. Giannattasio said that there is lower volume and that the recycling has offset it and gone up as people are much better at recycling now and are not throwing it in with regular trash. They are seeing a steady tipping fee of $60/ton.
Mr. Taylor said that he has heard that they seem to be having trouble getting money from the commercial haulers and asked if that is true. Mr. Giannattasio said that they are in absolute control of those who go there.
Mr. Jones asked if they have purchased a third sanitation truck with the automatic arm. Mr. Giannattasio said not yet – they are working on it.
Mr. Jones asked if they have the third truck if they could get away from the overtime on the holiday weeks. Mr. Giannattasio said that it is actually the recycling that slows the system down and not the regular trash pick-up. He added that they are working on that as they are looking for trash pick-up to be single-stream in the near future.
Mr. Langan asked about the new recyclables program. Mr. Giannattasio said that some cities are trying it and that what is different is the technology of the plants. He then explained that on a fleet there is a lay-out of vehicles that need to be purchased over the maximum 20-year life cycle so they have requested the $300,000 per year on the capital side to be able to do that. He asked Mr. Holyfield to explain to them some of the expenses that they could have saved had they been on the program. Mr. Holyfield explained that the 1981 truck had a rotted body and that it cost $8,000 to fix it – if they had been on the replacement program, they would not have had to do that as they would not have had a truck that old in the fleet.
Mr. Giannattasio said that the overall motivation is to spend wisely and to eventually keep the $300,000 flat.
Mr. Larcen asked if the $300,000 that they have requested is what the Board of Selectmen has passed along as $150,000. Mr. Formica said yes.
Mr. Giannattasio explained road reconstruction which includes repairs to bridges, culverts and under drains that keep the roads from crumbling. He presented a graph on the roads and the maintenance that has to be done and how the expenses on this maintenance go up as things are deferred. Their aim is to get away from a ‘worst first’ mode of operation as it is better to do the maintenance rather than the replacement. He cited figures of $11,800 per mile to do routine maintenance; $190,000 per mile to do road repair and $375,000 per mile to do road reconstruction. They average around $750,000 per year and have asked for $1.15M as that is what it would take to cut off the spillover in miles of serious work.
Mr. Langan asked if they have compared our expenses to those of other Towns in our area and how we stack up. Mr. Giannattasio said that the unit costs are all competitively bid through the State and that they can use that bid for contractors and that he would expect that they would get the best prices in 2009 as the contractors are looking for work. He said that he does not know how we stand with comparable Towns.
Mr. Formica said that Mr. Giannattasio has asked for $1.15M and that the Board of Selectmen has put forth a $500,000 figure with the hopes of having this be a community conversation – even if they have to fund it as a one-quarter or one-third of a mil dedicated just to this project - until they are caught up. It is a topic for a later time.
(Mr. Larcen called for a brief break here)
E. Unfinished Business ¨ Debt Service Interest & Principal (522 & 523) Mr. Larcen said that due to the lateness of the hour that he would like discussion on debt service and capital to relate to how the radio upgrade fits in with these plans and what the expected changes would be in debt service over the next couple of years. He asked what is happening over the next two year period.
Ms. Johnson explained that the sheets that they received this evening have the principal and interest. The current year it shows $6M, for the proposed year it shows $6,358,000 P & I; in 2010 $6,100,000 P & I and in 2011 – it declines to $5,300,000 P & I. She said that this does not include the bonding for the proposed radio project.
Mr. Larcen asked if he was correct in saying that this is only the existing debt and not any new debt for the school or other. Ms. Johnson said that was correct.
Mr. Jones asked about the Pine Grove Sewers. Ms. Johnson and Mr. Formica explained where the Pine Grove Sewers, Open Space, etc. could be found on the sheets.
Mr. Jones asked if they have any other pending projects that have to go on. Ms. Johnson said that she would have to check on that and get back to them. She said that she has also sent the plan to a financial advisor for the potential impact.
Mr. Larcen asked if the financial advisor keeps them current on interest and calling the bonds, etc. Ms. Johnson said that they are quite current.
Mr. Taylor said that a few months ago that it might not have been wise to consider funding; he noted that before they would short term borrow while the project is being worked on until all of the costs are in. He asked how they would give this to the consultants and the timing that they would use to bond – when approved or when completely installed. Ms. Johnson said that they have to start someplace to get someplace and that typically debt is on-going.
Mr. Larcen said that the budget has incorporated a change from $6M to $6.3M. Mr. Jones noted that in 2013-2014 that they are only dropping $2M and that the rest of the bonds are out to 2028 and that there is an awful lot of bonding there.
Mr. Larcen commented that there are a lot of projects out there that are needed and that next year it spikes and then it starts to go down.
Ms. Carini asked if they do not use all of the money that has been bonded if they pay on all of it or only what is actually used. Ms. Johnson said that if they have bonded all of it already that they are supposed to use the excess to pay down the bond.
Mr. Taylor said that they have bonded $280,000 more than needed on the school roofs and they asked if that could be applied to all of the bonding or only to the bonds for the High School roofs. Ms. Johnson said that her understanding would be that you use it towards the project bond itself which would be the high school roofs.
¨ Long Range Capital Plan Mr. Formica noted that this is a draft item and that more conversations will follow as they need to get into the habit of funding as accurately as possible. This draft has $5,279,000 of requests in it. He then did an overview of the draft noting what was pushed forward and what was not. He also explained that some items for public safety also went into the contingency grant that they received. He suggested that this is the basic thought process and that they could have other discussions on this as this is only an overview. Mr. Jones is on this committee as the Board of Finance representative.
Mr. Larcen said that this helps to put things into context for discussion regarding the radio upgrade. He also noted that the $250,000 contingency grant included two (2) police cruisers at the old rate. He asked how they would go about this replacement.
Ms. Johnson said that they would need to appropriate the monies through the process once they get it as it has to be done by June 30, 2008. She added that she spoke with Mr. Holyfield and was told that the cruiser purchases would be staggered so that four (4) of them will not come due at the same time.
¨ Budget Transfer $13,500 for Additional Audit Services **MOTION (5) Mr. Taylor moved to transfer $13,500 from Acct. #8-01-01-114-200-290 (Insurance PD & L) to Acct. #8-01-01-126-200-231 (Audit Services) for additional services related to completing the June 30, 2007 audited financial statements. Mr. Jones seconded the motion. Vote: 6 – 0 – 0. Motion passed.
¨ Special Appropriation $2,500 – Youth Services – reimbursable from 501(c)3 closeout **MOTION (2) Ms. Carini moved to appropriate $2500.00 of the $7,558.20 funds (from the 501(c)3 closeout) to the Professional Conferences line item #8-01-45-422-300-242 with the additional funds to remain in the General Fund. Mr. Taylor seconded the motion for the purpose of discussion.
Ms. Carini asked why they were moving $2500 of the $7558.20. Ms. O’Brien noted that they also bought Dell computers for the office with this and that they had verbally agreed that the money would come from this closeout when it arrived.
Mr. Taylor said that originally they came up short on money for services and youth programs and that it bothers him that $2500 would be spent on one person and not on the children and the programs.
(Note: 6.55 PM – Jeff Langan joined the meeting) Linda Fecteau, 18 Oakwood Road, former Youth Services Director explained that her understanding was that the taxpayers were paying $20,000 less by Youth Services becoming a Town department than if it remained a 501(c)3. With respect to the staffing structure and sharing Parks & Recreation office staff, she said that she pulled the March meeting minutes and that while they said that they would try to do that to further save, it was not something that they were able to work out.
Mr. Taylor asked if their Administrative Assistant was part-time. Ms. Fecteau said yes that at the time of the 501(c)3 designation that the position was part time. She further explained that in the overall structure her thought was that they could realize savings on things such as the audit where they paid $5000 and now it would be part of the Town. The thought was that there could be more efficient ways of doing business when they became a Town department. She said that they also understood that when the 501(c)3 was closed out that the $7500 would come to them to use.
Laura Rotchford, former Youth Services Commission Chair said that when they worked together to do a strategic plan; what they asked was if becoming a Town department would be a more efficient way to serve the youth of the Town. The 501(c)3 close-out money was to be used for their youth programs.
Mr. Taylor asked specifically what money they are talking about. Ms. Rotchford said the $7558 from the close out of the 501(c)3.
Ms. O’Brien said that the $2500 was for professional services for further education and to make grant contacts and that she had discussed this with Mr. Formica and Ms. Johnson. She added that she also has a new Program Director who needs training.
Mr. Jones asked if the $2500 was also for training the new program director. Ms. O’Brien said not directly.
Mr. Taylor, Mr. Jones and Ms. Carini suggested holding off on this item for now as they have just received new information regarding revenues during the budget review and they would like to wait for Ms. Johnson to report back to them on that.
Mr. Taylor explained that if the $31,000 that was just found today does not exist, then there will be other things to consider here.
Mike Manifold, Teacher, and Youth Services Board Member submitted that the training that Ms. O’Brien went to was very important. He also cited the mentoring program that they had done with the kids and the Town earlier this year and how important that was. Out of the $7558, $2200 was spent on computers for the office and they understood that the $5300 that was left would go towards programs and not into the general fund. He also noted that they had spent less than the previous year and said that the money outside of the $2200 should go directly to Youth Services.
Mr. Larcen asked what the pleasure of the Board was regarding voting on this item. Mr. Jones said that he would like to see this come to them ‘clean’. Ms. Carini said that they do have a copy of a check for the $7558 that was directly written to Youth Services. Mr. Taylor said that what clouds this is that the ’07 fiscal year came in short and that this perhaps could have been what would have cleared that. Mr. Langan suggested that they wait until they have the whole picture.
**MOTION (3) Mr. Jones moved to table action on Motion (2). Mr. Langan seconded the motion. Vote: 5 – 0 – 1. Motion passed. Abstained: Ms. Carini
Mr. Larcen said that he hopes that they will get all of this information to them.
¨ Special Appropriation $6,250 – Youth Services – Special Grant Program **MOTION (4) Mr. Langan moved to fulfill the grant requirements with the funds to be appropriated as follows: $3,000.00 to Acct. #8-01-45-422-100-415 (Program Payroll) and $3,250.00 to Acct. #8-01-45-422-300-320 (Miscellaneous Supplies). Ms. Carini seconded the motion.
Mr. Taylor said that they had just heard comment that the Administrative Assistant is eliminated for next year. He asked if they have part-time staff now. Ms. O’Brien said yes, they do and that it comes from the seasonal coverage.
Mr. Larcen called for a vote. Vote: 6 – 0 – 0. Motion passed.
¨ Discussion and possible action on funding for Radio Upgrade - $1,305,914.65 (Dick Morris, Fire Marshal) Mr. Taylor asked what possibilities there are available so that they would not have to bond all of this now; minus the monies that they would be getting ($350,000). Mr. Formica explained the options of short term notes, paying interest only or of the lease option at $250,000 per year. Ms. Johnson explained that the $100,000 (State Contingency Fund Grant) can be applied towards the lease payment in the next year and also to the bonding of the $1.6M that would be spread out over a longer period of time. She suggested that if they do short term notes for the first couple of years that they would probably get lower rates.
Mr. Larcen asked about the bonding cost. Ms. Johnson said it would be $1,050,000 in notes. Mr. Larcen said that Ms. Johnson was working with a higher cost before and that they have $350,000 in one-time resources for this project and said that it should be the $1,050,000 minus the $350,000. He asked what the cost of placing the bonds is. Ms. Johnson said that if they go to market for only this that it would have to bear the total cost and that if they had other items that they could spread the cost out over all of them. She said that they could also do a note issue which would not require full disclosure. They could do that for one year.
Mr. Larcen said that he is trying to get an understanding of what the placement costs are.
Mr. Taylor said that they would get by the spike this way which may pay the placement cost. He asked if they own the radio upgrade system after the five (5) year lease. Mr. Larcen said yes.
Mr. Formica said that his concern over the bonding is due to the budgetary issues and that they need to get the budget going in a good direction.
Mr. Taylor said that he thinks that if they bond that he could see that the lease is $91,000 cheaper however; they have to be able to answer to the taxpayers on this so the question is - what is the best for the Town. He added that this budget is unbelievable and that he cannot see how they could put a $250,000 lease line item into the budget – so he would have to recommend that they bond.
Ms. Carini asked if they would have to do separate motions on the item and how they propose to finance them.
Mr. Taylor suggested that they think about this as if the approve the radios and then do not agree on the financing they could leave the Town open.
Ms. Carini said that she respectfully disagrees and feels that they can be voted on separately.
Ms. Johnson said that they have the radio price and that they also should note the monies that they will be getting towards the purchase – the $350,000 total – but break it out so it is stated where the money is coming from. She said that they need to note it in the motion so that the bonding can be done on the amount less the other monies being granted. She suggested that they also need to add $50,000 more to cover the additional bonding costs. Mr. Larcen said that would be $1,050,000 that the bond financing would be based on.
Ms. Johnson said that if they are doing two (2) separate motions that the first motion should state the total amount and the other sources of funding. The second would include the method of financing and other monies.
Mr. Jones suggested that they poll the members to see how they would like to pay for this item – bonding, long or short term or through lease payments. Ms. Johnson said that if the preference is for bonding that they only need the one authorization.
Mr. Larcen said that they could do interest only for the first 12 months and allow staff to get the most optimal rate for the Town. He said that he does not think that they would want to pay the principal for the first 18 months as they would want to get out to 2011 when the debt is scheduled to go down. He then polled the members for their preference on funding this item should they approve it.
Mr. Langan asked about present dollars and the lease versus bonding – the net present value. Mr. Larcen suggested that Ms. Johnson have that information for the Town Meeting.
Ms. Carini said that she thinks that they should go with the lease arrangement – extending it out for 10 years and; they should make cuts somewhere in the budget in the $250,000 range. Mr. Larcen said to Ms. Carini that as they go through their deliberations that they could see other economies of scale to work with. He said that his concern is that they already have a budget with an 8%, 2 mil increase in front of them.
Ms. Carini said that as she did not want to be the only one to hold this item up that she would go along with the bonding concept.
Mr. Larcen asked if the vendor discounts are still included and valid here for this radio upgrade package. Mr. Formica and Mr. Morris said yes.
Mr. Larcen suggested that they do one motion with two parts. For the record, he said that they have had this item before them for awhile now and that he has voiced his concern over the lack of a competitive bidding process on this and; that issue is something that they will address in the near future in subcommittee. He then called for a motion.
**MOTION (6) Mr. Taylor moved to approve a special appropriation for a Radio Upgrade in the amount of $1,355,914.65 inclusive of $50,000 in financing costs; also subject to $200,000 from the Ambulance Association, $50,000 from a Nuclear Safety Grant and $100,000 from a State Contingency Fund Grant. Purchase is to be bonded with the first year or two financed ‘interest only’ and after that to principal and interest. Mr. Langan seconded the motion.
Ms. Johnson said that she would have bond counsel set this up.
Vote: 6 – 0 – 0. Motion passed.
F. Public Discussion Mr. Larcen called for any comments from the Public.
There were none.
G. Board Comments
There were none.
H. Adjournment **MOTION (7) Mr. Taylor moved to adjourn this Special Meeting of the East Lyme Board of Finance at 10:57 PM. Mr. Langan seconded the motion. Vote: 6 – 0 – 0. Motion passed.
Respectfully submitted,
Karen Zmitruk, Recording Secretary
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SPECIAL MEETING MINUTES BUDGET REVIEWS Thursday, MARCH 27th, 2008 EAST LYME BOARD OF FINANCE
Members In Attendance: Steve Larcen, Chairman Jeff Langan, Secretary John Birmingham Jill Carini Bob Jones Allan Taylor
Also In Attendance: Paul Formica, First Selectman Anna Johnson, Finance Director Esther Williams, Town Clerk William Deakyne, Library Director Dave Putnam, Parks & Recreation Director William Mulholland, Zoning Official Mike Shapiro, Economic Development Commission Patrick Kelly, Waterford/EL Shellfish Commission Don Landers, Harbor Management Commission
Absent: No One
A. Call Meeting to OrderChairman Larcen called this Special Meeting of the East Lyme Board of Finance to order at 7:00 PM.
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