RECEIVED September 2, 2010 @ 10:46 A.M.
Michele R. Grande, Redding Town Clerk
3 pages
REDDING BOARD OF FINANCE
REGULAR MEETING
August 30, 2010
Minutes
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan, Guffey, Mazzucco, Simeonidis
Also present: First Selectman Ketcham, Treasurer O’Donnell, Tax Collector Moisio, a representative of the Redding Pilot and four members of the public.
Chairman Alvarez called the meeting to order at 7:32 pm.
APPROVAL OF MINUTES
Motion: move that the Board of Finance approve the minutes of the June 28, 2010 meeting as submitted. DeSalvo, Mazzucco. Approved. 5-0-1. Mr. Mazzucco abstained.
Motion: move that the Board of Finance approve the minutes of the July 26, 2010 meeting as corrected. DeSalvo, Mazzucco. Approved. 3-0-3. Abstaining: Mr. Mazzucco, Mr. Dolan, Mr. Simeonidis.
Correction: typo on page 1, under Controller’s Report, #4, sentence 4, change Only to On July 26, 2010.
PUBLIC COMMENT
Daniel Heller, Sport Hill Road: comments on the draft of the Investment Policy scheduled for review at the meeting. He added his support for safety of investments and the continuation of investing in the STIF Fund and Union Savings Bank.
TAX COLLECTOR’S REPORT
Tax Collector Moisio reported that tax collections are currently at 52% compared with 53% a year ago. She noted that there have been a few more bankruptcies and foreclosures reported during the month.
CONTROLLER’S REPORT
Mr. Gniadek highlighted his written report:
1. Revenue: the bond premium of $50,880 was booked to revenue as an unbudgeted favorable variance to revenue
2. Expenses: as a result of the conversion of the BAN to Bond, principal payments will be lower, but interest expense and fees will be higher, resulting in a favorable variance to the budget of about $150,000.
3. The Town’s building official will retire on Sept. 30, resulting in a reduction of one headcount and savings for the year of an estimated $70,000.
4. Donna D’Aquino in the Controller’s Office will leave the position mid-September. There is considerable interest in the position. The job has been re-titled as Accounting Clerk to better reflect the work being done.
5. Unreserved Fund Balance: A check for $171,500 was received from the State of Connecticut as reimbursement for the purchase of the Hanssen property.
6. Station Road Bridge: work on the bridge is underway by D & V Morin and is expected to be completed by the end of the Labor Day weekend. The original contractor, Dayton Construction, was unable to take on the project.
7. Georgetown Streetscape Project: The State DOT is reviewing the three lowest bids and should give the Town authorization to award the contract shortly.
8. Police Station addition: the low bid of $390,000 from Tomlinson Hawley Patterson was withdrawn due to a costing error. The project will be rebid as a prevailing wage job (in excess of the $400,000 prevailing wage threshold). The project is fully funded by a STEAP Grant and LoCip.
9. Route 57/107 intersection project: The Town is responsible for hiring an engineering firm for inspection of the project. A notification for Letter of Interest was mailed to qualified firms, with submittals due September 1, 2010.
Georgetown/GLDC project update: Mrs. Ketcham reported that work is being done to resolve financing issues; that there is interest in the project; and that she is in daily contact with representatives. The Master Plan for the area remains the same as originally discussed.
TREASURER’S REPORT
Mrs. O’Donnell reported the status of the current investments as of August 30, 2010:
- Union Savings, Investment Account, $19,167,775 (this includes net bond proceeds)
- Union Savings, General Fund, $200,000
- MBIA Class Plus Account, $83,468
- STIF-State Treasurer’s Investment Fund, $2,278,417
INVESTMENT POLICY
Mr. Mazzucco and Mr. Guffey presented a draft of the Investment Policy for review and discussion. Discussion followed. Investment options were discussed. Further information will be gathered and the revised draft document will be reviewed at the next meeting.
WPCC UPDATE
John Shaban, Chairman of the WPCC, addressed the board concerning the need for additional funding. The WPCC, by statute, cannot borrow from the Assessment Fund to pay operating costs. The Assessment fund cannot be used for anything other than construction costs. The Assessment Fund is dedicated to pay off the Clean Water loan from the State of Connecticut used to build the original collections system in Georgetown.
Mr. Shaban reported that previously DEP agreed to a reduction in personnel, from 4 to 2, and the plant operation, Veolia Water, NA, has reduced their costs in a number of ways. The option of reconfiguration of the plant to a smaller size has been studied, and both the DEP and engineers said this could not be done. Another option, retrofitting the plant to accept septage has been considered and discounted. The cost of retrofitting the plant would be in excess of $100,000 and take six to 12 months. The accepting of septage from outside sources will include an increase in truck traffic in and out of the plant and create odor issues.
Mr. Shaban added that the WPCC is unable to pay their obligations at the present time. He estimated the current balance in their account if $40,000 and there are $80,000 in obligations, and these increase each month.
Mr. Alvarez will arrange a meeting with representatives of GLDC to try to resolve the issue of their lack of payment. He suggested the board discuss the issues further in an executive session.
Motion: move to add to the agenda an executive session for the discussion of pending litigation. Simeonidis, Mazzucco. Approved. Unanimous.
PUBLIC COMMENT
Daniel Heller: commented that he is no longer the Treasurer of Georgetown Special Taxing District. He added that GLDC needs to find a buyer with lots of money, and that changing the configuration of the sewer treatment plan would impede the process of finding a buyer for the project. He added that a lawsuit may not be wise, as the only asset they hold is the land.
EXECUTIVE SESSION
Motion: move to recess to executive session for a discussion of pending litigation. Mazzucco, DeSalvo. Approved. Unanimous.
Mrs. Ketcham and Mr. Gniadek were invited to be present.
The meeting recessed at 9:01 pm
RECONVENE
The Chair reconvened the meeting in public session at 9:20 pm
No further action was taken.
ADJOURNMENT
Motion: move to adjourn the meeting. Mazzucco, DeSalvo. Approved. Unanimous.
The meeting was recessed at 9:20
Respectfully submitted,
Mary Maday, Recording Secretary
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