Board of Finance Minutes - December 17, 2007

Bd of Finance 12/17/07 Approved 1/10/08

BOARD of FINANCE

Meeting of December 17th, 2007

8:00 PM Town Hall Meeting Room

Meeting called to order at 8:04 PM.

Board Members Present: Messrs. Muller, Carter, Atkinson, O’Brien, Chairman

Jerry Sargent, Ms. Melissa Koller, Ms. Patty Kopas and Donna M. Anastasia, Secretary.

Others Present: Mr. Bruce Chudwick of Shipman & Goodwin, Town Administrator Tom Landry, Finance Director Rick Darling, resident William McDonough of Scatacook Trail.

1. Discussion/Decision regarding approval of wording for January 17 special town meeting addressing school construction projects.- Bruce Chudwick, Shipman and Goodwin.

Mr. Chudwick discussed the proposed Resolution to reallocate funds between different projects and between different schools to close out and balance out remaining accounts and projects. The original Referendum held November 15, 2001 allocated $48,265,000 for High School, Middle School and Hurlbutt projects; $28,070,000. for the planning, design and construction of a new 3-5 grade school; $3,100,000. for the planning, design and construction of a new auditorium for the Weston Middle School. The Resolution allows the remaining balances of these accounts to be transferred and used for the outstanding obligations and approved uncompleted work covering all of the Weston Schools. Any unexpended funds at the conclusion of the entire project would be transferred to the Town’s Unreserved General Fund. The Resolution is contingent upon Board of Selectmen approval and a Town Meeting which is tentatively scheduled for January 17^{th, 2008.}

Motion: Mr. Muller made a motion to approve the Resolution as submitted with further approval by Special Town Meeting and the Board of Selectmen regarding reallocation of funds. Ms. Kopas seconded, with none opposed, motion passes.

Details of Resolution page 2.

1 Bd of Finance 12/17/07

TOWN OF WESTON

BOARD OF FINANCE

RESOLUTION TO RECOMMEND THAT THE TOWN OF WESTON REALLOCATE FUNDS BETWEEN AND WITHIN THE SCHOOL CONSTRUCTION PROJECTS APPROVED BY THE VOTERS AT A REFERENDUM VOTE HELD NOVEMBER 15, 2001 AND AT A SPECIAL TOWN MEETING HELD MARCH 22, 2007

WHEREAS, at a referendum vote held November 15, 2001, the voters of the Town of Weston approved the following appropriation and bond authorization referendum questions for the following projects (the "Referendum Projects"):

Question 1. $48,265,000 for various capital improvements to the Weston Public Schools and Parks and Recreation Facilities (the "High School/Middle School Project"), allocated as follows:

High School, Middle School and

Hurlbutt Projects $41,073,000

Septic Improvements $ 2,042,000

Recreation Facilities $ 5,000,000

Administrative, Financing and Bond

Issuance Costs $ 150,000

TOTAL $ 48,265,000

Question 2. $28,070,000 for the planning, design and construction of a new third through fifth grade school (the "New 3-5 School Project").

Question 3. $3,100,000 for the planning, design and construction of a new auditorium for the Weston Middle School (the "Middle School Auditorium Project").

WHEREAS, at a Special Town Meeting held on May 30, 2002, $700,000 of the $48,265,000 appropriation and bond authorization for the High School/Middle School Project was reallocated to and for the acquisition of an approximately 2.09 acre parcel of land located at 16 Parade Ground Court to accommodate the construction, renovation and field relocation activities on the school campus, and

WHEREAS, at a Special Town Meeting held on March 22, 2007, $2,890,000 of the $3,100,000 appropriation and bonding authorization for the Middle School Auditorium Project was reallocated to and for the Weston High School Roof and Auditorium project (the "High School Roof and Auditorium Project") (collectively, the Referendum Projects and the High School Roof and Auditorium Project are referred to as the "Projects"), and

2 Bd of Finance 12/17/07

WHEREAS, supplemental appropriations to the High School/Middle School Project were made, as follows: 1.) $438,000 supplemental appropriation in January 2006, for legal and consulting settlement costs, and 2.) $500,000 Small Town Economic Assistance Program (STEAP) grant in August, 2004, for a turf field, and

WHEREAS, the Projects have balances, including committed additional obligations, as follows:

Project

Approved Amount

Expended

Balance

High School/Middle School Project:

High School, Middle School and

Hurlbutt Projects

$42,011,000

$43,100,942

($1,089,942)

Septic Improvements

$ 2,042,000

$ 2,398,774

($ 356,774)

Recreation Facilities

$ 5,000,000

$ 4,842,213

$ 157,787

Administrative, Financing and Bond Issuance Costs

$ 150,000

incl. above

$ 150,000

SUBTOTAL

$49,203,000

$50,341,929

($1,138,929)

New 3-5 School Project

$28,070,000

$26,648,763

$ 1,421,237

Middle School Auditorium Project

$ 210,000

$ 209,466

$ 534

High School Roof and Auditorium Project

$ 2,890,000

$ 1,609,250

$1,280,750

TOTAL

$80,373,000

$78,809,408

$1,563,592

NOW, THEREFORE, BE IT RESOLVED, that the Board of Finance recommends that the Town of Weston reallocate amounts between the Projects and within the High School/Middle School Project, as follows:

Project

Approved Amount

Reallocation:

Increase/ (Decrease)

Revised Amount

Expended

Revised Balance

High School/Middle School Project:

High School, Middle School and

Hurlbutt Projects

$42,011,000

$1,089,942

$43,100,942

$43,100,942

-0-

Septic Improvements

$ 2,042,000

$ 356,774

$ 2,398,774

$ 2,398,774

-0-

Recreation Facilities

$ 5,000,000

($ 157,787)

$ 4,842,213

$ 4,842,213

-0-

3 Bd of Finance 12/17/07

Administrative, Financing and Bond Issuance Costs

$ 150,000

($ 150,000)

-0-

-0-

$ -0-

SUBTOTAL

$49,203,000

$1,138,929

$50,341,929

$50,341,929

-0-

New 3-5 School Project

$28,070,000

($1,138,395)

$26,931,605

$26,648,763

$ 282,842

Middle School Auditorium Project

$ 210,000

($ 534)

$ 209,466

$ 209,466

$ - 0-

High School Roof and Auditorium Project

$ 2,890,000

$ -0-

$ 2,890,000

$ 1,609,250

$1,280,750

TOTAL

$80,373,000

$ -0-

$80,373,000

$78,809,408

$1,563,592

BE IT FURTHER RESOLVED, that the Board of Finance recommends that the Board of Selectmen be authorized, after approval of the Board of Finance, to: 1.) reallocate the remaining $282,842 appropriation for the New 3-5 School Project to any other Project, 2.) upon substantial completion of the High School Roof and Auditorium Project, reallocate the remaining appropriation, if any, to any other Project, 3.) accept any reimbursements or other revenues received for the Projects and appropriate those funds to any one or more Projects, and 4.) close out the Projects upon final completion and transfer any remaining unexpended funds to the Town’s Unreserved General Fund.

BE IT FURTHER RESOLVED, that the Board of Finance recommends that all of the other terms, conditions and provisions of the appropriation and bond authorizations approved by the voters at the referendum held November 15, 2001, as amended, and the Special Town Meeting held March 22, 2007, shall remain unchanged.

2. Discussion/decision regarding proposal to establish trust fund for OPEB liabilities- Bruce Chudwick

Mr. Chudwick discussed the procedures for establishing a Trust Fund for the town’s OPEB liabilities. Shipman & Goodwin would require a fee of not more than $7,500.00 for their services. Mr. Chudwick outlined (portion of email attached) some of the services Shipman & Goodwin would include, but not limited to:

..- evaluating alternative trust structures (e.g,. IRC Section 115, VEBA or IRC Section 401(h) account in pension plan) and determining the best fit for the Town;

- determining who will serve as trustee of the OPEB assets and on the OPEB board (and the corresponding functions) and ensuring that the appropriate employee groups eligible for benefits are included;

- drafting the ordinance (or drafting applicable terms and forwarding to the town attorney for inclusion in an ordinance);

- drafting the trust agreement;

- attending meetings of the Board of Finance or other Town officials to review the documents and answer questions. Our fees for these services will range from $2,500-$7,500…...

4 Bd of Finance 12/17/07

There was discussion regarding different types of Trust accounts and which one might work best for Weston. An ordinance would have to be drafted and approved for setting up a Trust, a Trust Agreement and a designated Trustee responsible for the Trust. Some area towns currently in various stages of completion are Greenwich, Stamford, Norwalk, Danbury, Glastonbury and New Britain. The Trust offers a separate pool of assets for investment with greater flexibility and a higher rate of return than other OPEB alternatives. There was discussion regarding the final full valuation report by Milliman. The Board of Education has yet to complete all of the necessary data for Milliman. Mr. Darling will put a call into the BOE.

Motion: Chairman Sargent made a motion to approve fees of not more than $7,500.00 for Shipman & Goodwin to establish a Trust Fund for OPEB liabilities.

Mr. Muller seconded, motion passes unanimously.

3. Executive Session- Potential Litigation Settlement Regarding Losito Electric Claim.- Don Gary, School Building Committee

The Board adjourned to Executive session at 8:50 PM. The regular meeting of the Board reconvened at 9:10 PM.

Motion: Mr. Muller made a motion to settle the above referenced claim, Ms. Kopas seconded. Motion passes.

4. Approval of Meeting Minutes of November 8 .

Mr. Atkinson made a motion to approve the minutes of November 8^{th, 2007 as submitted, Mr. O’Brien seconded, minutes approved.}

5. Election of Board officers.

Mr. Atkinson made a motion to nominate Mr. O’Brien as Chairman of the Board, Mr. Muller seconded. With no other nominations before the Board, motion passes unanimously. Mr. Michael O’Brien is approved Chairman.

Mr. O’Brien made a motion to appoint Mr. Sargent as Vice Chairman, Ms. Kopas seconded. With no other nominations before the Board, motion passes unanimously.

6. Any other items of business to be brought up for Board consideration

With no further business to come before this Board, Chairman O’Brien made a motion to adjourn, Mr. Muller seconded, meeting adjourned at 9:15 PM.

Respectfully submitted

Donna M. Anastasia, Secretary