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Board of Finance Minutes 07/18/2017
Attachments:
Attachment NameAttachment SizeAttachment Date
Size: 79K
Last Updated: 2017/8/10

Minutes of the Board of Finance meeting held on Tuesday, July 18, 2017 at 7:30 p.m. at the Old Lyme Memorial Town Hall.
~
Present:~~~~~~~~~~ Regular Members:~ Andrew Russell, BJ Bernblum,
                Christopher Kerr, David Woolley
Alternate Members:~ Adam Burrows, Bob Jose, David Kelsey                        

Bonnie A. Reemsnyder, ex-officio
Nicole Stajduhar, Finance Director
Tim Griswold, Treasurer         
Mary Jo Nosal, Selectwoman
Skip Sibley, Selectman                          
                                                                                
Absent:~~~~~~~~~~~ Regular Members:~  H. P. Garvin, III, Janet Sturges
~Alternate Members:~~
                
Guest:          Rich Prendergast, Water Pollution Control Authority (WPCA)
                Doug Wilkinson, Water Pollution Control Authority (WPCA)        
                Phil Parcak, Facilities Manager
Judith Read, Resident

                _______________________________________________________


Mr. Russell called the meeting to order at 7:30 p.m., and stated that two Regular members are absent this evening.  Therefore, a motion was made by Mr. Kerr, seconded by Mr. Bernblum, to have Mr. Kelsey vote for Mrs. Sturges in her absence and Mr. Jose vote for Mr. Garvin in his absence.  Motion carried.


WPCA Presentation

Mr. Prendergast highlighted the WPCA Sewer options update outlining the town’s responsibility for the Sound View Beach and north of Route 156 to the train tracks.  Out of the town’s scope are the private beach associations that will be installing sewers. Future extensions of existing systems (beyond Sound View, and north of Sound View to the train tracks and the area of Hawks Nest) are unlikely.  Any house attached to the sewer system will not be able to expand their home size or the size of their systems.    The Town’s role in sewer development is to construct, operate and maintain wastewater collection and conveyance systems.  The WPCA will oversee administrative services, sewer billing, as-required inspections and long-term planning for town responsibility properties. WPCA will partner with private beach associations in creating an agreement with New London, Waterford and East Lyme as co-owners of the treatment facility and participate in funding long-term operation and maintenance items.  There would be one shared pumping station and sewer lines (out of town).  Mr. Prendergast stated that the need for sewers has been coming for a long time.  There are aging or non-compliant septic systems and neighborhood requests for sewers.  Like it or not, the Town has to deal with an irreversible legal requirement of the then-current town Sanitarian’s “notice of public nuisance” regarding localized pollution to do something.  There is an Administrative Order from the State Health Department that requires the town to complete the study and we are still in compliance by making progress with various activities.  There are poorly drained soils and soils that excessively drain with tidal movements and shallow groundwater.  Mr. Prendergast highlighted the following key sewer debt reduction funding concept. The Facility Connection Charges (FCC) is a fee to connect a house to the sewer line.  WPCA may establish charges for sewer connection and for sewer use, there must be a public hearing (10 day notice) to set fees, and appeals must be within 21 days after final fee schedule published by WPCA.

Board of Finance Meeting                                                                        July 18, 2017




Betterment Fees (BF) are a special assessment on sewer users and main source of construction revenue but subject to the right of appeal.  The Sewer User Fee (UF) is applied to sewer users for on-going system maintenance and annually applied.  Mr. Prendergast highlighted the proposed sewer construction costs for the Town’s sewer scope.  Preliminary cost estimate for survey, construction and main line construction is $9.13 million, excluding Hawks Nest.  After applying various funding grants, costs total $7.23 million.  These costs are shared by the benefited properties at $26,800 each (per equivalent dwelling unit or EDU) assuming CT-DEEP grant.  A twenty-year financing available to the town results in annual estimated $1,340 per EDU + 2% interest costs.  The estimated costs to sewer users is an estimated EDU cost $26,800 recovered by the following:  1) The Betterment fee which handles most of the construction cost; 2) Facility Connection Charge – minority of costs, East Lyme charged $6,030 based on research so far; 3) Anticipated Annual Sewer User Fee is approximately $430;  4) Permit Fee, if any established by WPCA.  Additional resident costs are plumbing cost to install line from house to curb line (this cost varies but could be between $50 - $100 per foot, depending on conditions).  

Mr. Prendergast reviewed the Key Issues and Summary which included Collection Risk – lien or not to lien the property, the Betterment fee gap analysis – the evaluation of Betterment Fee gap costs is $5,000 - $25,000.  Many WPCA’s allow the Betterment Fee to be financed through the Town for a 10-20 year period at the Towns current bond rating.  Resident financing of Betterment fee and Facility Connection Charge can be combined if connection is within the first year.  Betterment fee can be applied prior to system readiness or connection.  If the resident delays the connection, the Facility Connection Charge cannot be financed.


New Business

Mr. Russell requested a motion to move the Town Hall exterior work up on the agenda.  A motion was made by Mr. Kelsey, seconded by Mr. Woolley to move the recommend to Town Meeting $25,000 for Town Hall exterior work (funded from the Town Building Fund).  Motion carried.

b)  Additional $25,000 for Town Hall exterior work (funded from the Town Building Fund):  Facilities Manager, Phil Parcak, explained that part of the building assessments it became apparent that the condition of the exterior of the Town Hall facility was in need of exterior painting, replacement of the skirt boards located at grade level, various trim elements mainly on the older portion of the facility.  A baseline lead test was conducted on exterior surfaces of the older portion of the facility and found these surfaces that contain peeling lead paint in excess of the minimum allowable standard would need to be abated.  Mr. Parcak detailed the two proposals, quotes and timeframes that he received and based upon the information, his recommendation is Martinez Painting.  The contractor will perform exterior painting, lead abatement, skirt and trim board replacement with Azack style material or equal, etc., for $54,045.00.

A motion was made by Mr. Kelsey, seconded by Mr. Bernblum to recommend $25,000 for Town Hall exterior work (funded from the Town Building Fund).  Motion carried.





Board of Finance Meeting                                                                        July 18, 2017




Approval of June 20, 2017 Minutes

The minutes of June 20th were reviewed.  There was a correction noted on page 1, Financial Report, 1st sentence.  After “$198,598 should read, “collected in May with $345,000 collected over the budgeted amount for FY 2016/17.”

There being no other corrections noted, a motion was made by Mr. Kelsey, seconded by Mr. Jose to approve the minutes, as modified.  Mr. Bernblum abstained as he was not present.  Motion carried.


Review of Monthly Financial Reports

Mrs. Stajduhar outlined the Financial Report Notes for June 2017.  Under Revenues, the Property tax, total tax collections were $121,279, $467,000 collected over the budgeted amount.  Sound View Parking income, street and lot collected $23,443.  The year to date revenue is 102% of the budget, or $798,191 collected in excess of budget ($600,000 from surplus excluded).  Other revenues include Open Space Fund - $4,000 interest from maturing of one year CD and Hains Park Improvement Project - $5,300 for a total of $47,330 to date for non-project costs.

Selectman’s Office and Board of Assessment Appeals Department will be over budget – the transfer of budget will be done at the August Board of Finance meeting.   Expenditure of carryovers include the following:  Academy Lane Fire Dock  -$1,561 for Engineering, and $25,192 for Construction; Emergency Management Communication Upgrade spent $6,250 of $15,607 (school related) for antenna at Public Works; Mile Creek Road Bridge project spent $2,469 for Engineering; WPCA spent $2,523 to Woodard & Curran for pollution ground water monitoring program.

The percentage of general government budget for 2017 spent to date (without Capital or RSD#18 included) = 85%,

Under Other Funds, Hains Park Boathouse - $29,746 to Scope Engineering through April 30, 2017, and, Sound View Improvement Project - $176,353 to B & W Paving, and $20,016 to WMC Engineering Consultants.

Mrs. Stajduhar reviewed the June 2017 unadjusted carryovers.  

Mrs. Stajduhar highlighted the Academy Lane Fire Dock, Boathouse Hains Park Improvement Project, and the Sound View/Bike Improvement Project as of June 30, 2017.

The Academy Lane Fire Dock Project budgeted total is $276,496, with $154,174 expended and $122,322 unexpended.

The Hains Park Improvement Project total for the Boathouse is $934,900 with $852,726.04 expended and $82,173.96 unexpended.  Hains Park Restroom has $160,000 unexpended and, Non-Project donations received to date is $47,330.


Board of Finance Meeting                                                                        July 18, 2017




Mr. Griswold distributed an updated detailed Hains Park Boathouse Budget sheet.  He highlighted various expenditures noting that the foundation and slab change order of $103,633, along with the donations would equal the $160,000 unexpended.


The Sound View/Bike Path Improvement Project total $911,100 approved at Town Meeting.  Total expended is $691,000.46 and $220,099.54 unexpended.  Total Revenues from Town approved at Town Meeting ($234,620) and from CT DOT (121,897.44), for a total Revenue of $356,517.44.


Old Business

Nothing to report.


New Business

Proposed Bid Policy Guidelines:  Mrs. Stajduhar highlighted the proposed Bid Policy Guidelines.  The purpose of this policy is to create a process for purchasing goods and services that will increase efficiency, promote fairness, accountability and confidence, and provide necessary supplies and services in a timely and cost-effective manner.  This policy is directly binding upon all town employees, public officers, officials and members of boards, commissions and agencies.  The Finance board shall direct to Town audit firm to review and comment on compliance with this policy.  Mrs. Stajduhar reviewed the Application, Definitions, Procedures, Significant Vendors and Annual revisions & Distribution of Policy.  Proposed Bid Policy Guidelines is attached to the minutes.

Construction Project Budget template:  Mrs. Stajduhar distributed an example of a formatted form that can be used for any construction project.  The Board of Selectmen reviewed and recommended to have the Retainage due and Contingency broken out.  Mrs. Stajduhar has requested for the board to review and comment as to what other information they would like to see in order to develop and perfect the form for Construction Project Budget template.  


Approval to recommend to Town Meeting:

Mosquito Management:  Mrs. Reemsnyder stated that she is looking for $30,000 to finish this season and includes next May and June 2018 as well.  Mrs. Reemsnyder stated that because Old Lyme has a large area of marshland, Ledge Light recommended that the Town maintain a degree of additional spraying. Mrs. Reemsnyder wanted the Board to know that this is an unforeseen expense and she’d like to sign a contract with Innovative Mosquito and to include in next year’s budget.

Mr. Kelsey stated that the BOF recommends the approval of $30K for Mosquito Management for 2017/18 and submission for approval to go to Town Meeting.  Mr. Kerr seconded the motion.  Motion carried.



Board of Finance Meeting                                                                        July 18, 2017





Other Business

Nothing to report.


Selectman’s Report

FRA Released Record of Decision:  Mrs. Reemsnyder reported that on July 12th, the Record of Decision was released and the Kenyon bypass was removed from the plan and replaced with an open area to be studied by both CT and RI to determine where the high speed rail line would be located between New Haven and Providence, RI.

Rte. 156 Bikeway/Sound View Improvement Project: Mrs. Reemsnyder stated that she did a walkthrough which resulted in a punch list of items to be completed, including banner poles, decorative street signs, some bike racks secured and correction to the paving job.  Some of the items will be done this summer however the bulk of it will be done after Labor Day.  Mrs. Reemsnyder stated that the current budget reviewed does not include some additional expenses on the items listed above, with some inspection services.

Boathouse/Hains Park Improvement Project:  Mrs. Reemsnyder stated that all items for a CO are completed and will be issued when the Building Official returns from vacation.  The Lease will then be signed and the building has been transferred to the insurance of the RSD#18.  The agreement between the District and OL Rowing Association has not yet been finalized.

Police Hiring’s:  Mrs. Reemsnyder stated that Kevin Roche has been sworn in as our sixth officer.  The two new officers come from Old Saybrook police department and Old Lyme still has one officer out on a disability.  Mr. Russell and Mrs. Reemsnyder have been exploring the possibility of creating one police department with East Lyme to serve both communities.  One of the benefits with consolidating would result in 24 hour coverage for the town and possibly a cost savings.  East Lyme has a police commission, which Old Lyme would make appointments to, giving Old Lyme voice in police matters.

LED Streetlights:  The conversion process will begin shortly as the mobilization fee has been paid.

Union Negotiations with Public Works:  The Board of Selectmen approved the negotiated agreement with the Public Work Union.  Details include a 4 year contract, 2.25% increase each of the 4 years, health benefits remain the same for FY2018 and 2019 with an increase to deductible for FY2020 & 2021, with 50% of deductible paid by the town; 15% cost share.  Insurance buyout increased to $3,000, the same amount for police and Town Hall employees, all job classifications except for Maintainer I, II, III removed.  Overtime is paid as follows:  Nov – April: all hours paid count towards calculating overtime; May – Oct.: only hours worked count towards calculating overtime.

Academy Lane Dock:  Mrs. Reemsnyder stated that the work is nearly complete.  

Blight Ordinance:  Mrs. Reemsnyder reported that the Board of Selectmen is currently reviewing a blight ordinance.

Board of Finance Meeting                                                                        July 18, 2017





Halls Road Improvement Committee TOD Grant Application:   The Halls Road Improvement Committee has applied for a Grant through the Council of Governments to help with the Halls Road Improvements Committee goals with an 80/20 split, up to $2 million Federal funds grant.

The Midsummer Festival is scheduled for Saturday, July 29th with a 7:00 pm Friday night kickoff concert in the Florence Griswold Museum.  Saturday events commence at 8:00 am with an LYSB Midsummer 5K Run Walk, Run and Kids K.  Various activities continue throughout the afternoon and the Town Band and Fireworks display complete the evening, weather permitting.



Mr. Russell stated that the next meeting of the Board of Finance will be Tuesday, August 15, 2017 at 7:30 pm.


                                                

A motion was then made by Mr. Jose, seconded by Mr. Kelsey to adjourn the meeting at 10:15 p.m.  Motion carried.



Respectfully Submitted,


Michele E. Hayes
Secretary


                                Proposed Bid Policies Guidelines Attached















BID POLICIES

Purpose

The purpose of this policy is to create a process for purchasing goods and services that
will increase efficiency, promote fairness, accountability and confidence, and provide
necessary supplies and services in a timely and cost-effective manner.

This policy is directly binding upon all town employees, public officers, officials and
members of boards, commissions and agencies.  The Board of Finance shall direct the
Town of Old Lyme (‘Town’) audit firm to review and comment on compliance with this
policy.

Application

This policy shall apply to all purchases of goods and services by the Town except:
  • where conditions of state or federal funds, or conditions of a grant, gift or bequest mandate otherwise;
  • expenditures exempted by law;
  • expenditures made through State or Federal surplus property agencies;
  • expenditures made through or administered by the State or Federal governments;
  • expenditures made to an approved sole source vendor; and,
  • expenditures required as part of any collective bargaining agreement.
  • Expenditures for routine professional services who are appointed to handle on-going, routine Town business on a regular basis and whose appointment may be terminated at will by the Town, such as but not limited to, Town Attorney, etc.
Definitions

        A.      Major purchases are those purchases of goods, services or total lease payments over the life of a lease in an amount of $75,000 or more.

        B.      Regular purchases are those purchases of goods, services or total lease payments over the life of a lease in an amount of at least $20,000 but less than $74,999.

        C.      Incidental purchases are those purchases of goods, services or total lease payments over the life of a lease in an amount of $19,999 or less.

        D.      Sole source vendor is a vendor approved by the Board of Finance to provide certain goods and services for the Town.

        E.      Emergency purchases are those urgent purchases of goods and services which are required to protect the public health, safety and welfare.

        F.      Significant vendor is any vendor whose total aggregate disbursements from the Town in a single budget year exceeds $20,000.


Procedures

        A.      Major purchases require a formal bid process which shall include:

  • Advertisement of the invitation to bid or request for proposal (‘RFP’) a) in a newspaper of general circulation available in the Town, or b) on the Town website;
  • Direct notice of the bid or RFP to specific providers at the discretion of the First Selectman and Finance Director;
  • Notice of the place and deadline for receipt of the sealed bids or RFPs;
  • A description of the supplies, materials, equipment or services required and information on how and where to obtain more detailed specifications and bid or RFP forms;
  • Information on insurance requirements for the bidder or proposer;
  • A statement of the right of the Town of Old Lyme to reject any and all bids or RFPs if doing so is deemed by the Board of Finance to be in the best interests of the Town; and,
Public opening of the bids or RFPs by the First Selectman and Finance Director at a time not less than 10 business days after the deadline for receipt.

Selection of vendor shall be based on quality of the goods and services offered, cost, ability of the vendor to provide future maintenance, and the ability, capacity and skill of the vendor demonstrated under prior contracts.  The selection of a vendor shall be approved by the appropriate department head, the First Selectman and the Finance Director.  In the absence of any one of the aforementioned three authorized decision makers, the chairman of the Board of Finance shall be substituted.

Unless required by law or approved by the Board of Selectmen, no major purchase contract shall exceed 3 years.

Where the selected bid for a major purchase is not the lowest bid, reasons for the selection shall be noted and retained by the office of the First Selectman.

        B.      Regular purchases require competitive solicitation of bids or RFPs but may be done by the formal bid process.  Competitive solicitation includes:

  • Soliciting bids or quotations from at least two (preferably three) vendors unless a sole source vendor has been approved by the Board of Finance; and,
Selection of vendor based on quality of the goods and services offered, cost, ability of the vendor to provide future maintenance, and the ability, capacity and skill of the vendor demonstrated under prior contracts.

Unless required by law or approved by the Board of Finance, no regular purchase contract shall exceed 3 years.

Where the selected bid for a major purchase is not the lowest bid, reasons for the selection shall be noted and retained by the office of the First Selectman.

        C.      Incidental purchases may be made without a formal bid or competitive solicitation.  Such purchases may be made by department heads, the First Selectman, or the Finance Director.  Incidental purchasing choices shall be made based on quality of the goods and services offered, cost, ability of the vendor to provide future maintenance, and the ability, capacity and skill of the vendor demonstrated under prior contracts.

        D.      Sole Source Vendor.  The Board of Finance may approve a sole source vendor for major or regular purchases; such approval is not required for incidental purchases.  Approval shall take into account general availability of the goods or services, quality and cost of the goods and services, and the ability, capacity and skill of the vendor demonstrated under prior contracts with the Town.  The office of the Finance Director shall maintain a list of sole source procurements for each fiscal year recording each contractor’s name and the amount and type of each contract.

        E.      Cooperative Purchasing.  The Town may enter into cooperative lease or purchase agreements with other municipalities, at the discretion of the Board of Selectmen.

        F.      Emergency Purchases.  When an emergency threatens the health, lives or property of the residents of the Town, or threatens the property of the Town or the delivery of necessary services to the residents of the Town, the First Selectman (or in his/her absence, any one of the other selectman) and the Emergency Management Director shall have the authority to purchase emergency supplies and services while acting in the best interests of the town.

Significant Vendors

Should any vendor during the budget year receive the aggregate amount to qualify as a significant vendor, any incidental purchases subsequently under consideration for purchases from that vendor shall be subject to the procedures for regular purchases as described above.  All regular and major purchases from a significant vendor shall remain governed by provisions described above.

Annual Revisions & Distribution of Policy

In June of each year, the office of the Finance Director shall revise each of the
thresholds noted above by increasing each of the then current thresholds by the consumer price index for the twelve months ended May as determined
by the Bureau of Labor Statistics.  Any resulting revised threshold shall be rounded to
the nearest thousand dollar.

The Board of Selectmen and Finance shall review and approve all revisions, and the office of the Finance Director shall distribute a copy of the revised and restated policy to the Board of Selectmen, all department heads and any other procurement agents acting for the Town.






 
 
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