MINUTES FINANCE COMMITTEE MEETING TUESDAY, SEPTEMBER 15, 2009 7:30 P.M. ANNEX MEETING ROOM

DRAFT: 9/16/09 MINUTES FINANCE COMMITTEE MEETING TUESDAY, SEPTEMBER 15, 2009 7:30 P.M. ANNEX MEETING ROOM I. CALL TO ORDER The meeting was called to order at 7:31 p.m. by Councilor Champagne. II. ROLL CALL - Present were Committee members Champagne, Diaz, and Wadecki. Also present were Chairman Rodolico, Finance Director Marcia Hancock, Public Works Director/Town Engineer Steve Masalin, Ledge Light Health District Deputy Director Stephen Mansfield, LLHD Administration/Finance Supervisor Jennifer Muggeo, LLHD Town Representatives Mr. Robert Reiner, and Dennis Sindell, DDS, and resident Mr. Todd Brown, 37 Barton Lane, Ledyard. III. RESIDENTS' COMMENTS None. IV. PRESENTATIONS Ledge Light Health District Administration/Finance Supervisor Jennifer Muggeo explained that LLHD is funded through the following sources: (1) Per capita contributions from its member municipalities, (2) Per capita contribution from the State, (3) Grants, (4) Contracts, (5) Fees; and (5) Other miscellaneous income. She stated that each year the Board of Directors set a per capita contribution rate to be received from each participating municipality for services. She noted that the current per capita rate is $7.60 multiplied by the population in accordance with the Department of Public Health. She stated that the LLHD currently has six participating municipalities as follows: East Lyme, Groton town and city, Ledyard, New London, and Waterford. She continued by providing an overview of the Public Health programs and services LLHD provides to Ledyard. She stated that since Ledyard joined LLHD in 2001 that they have not paid their full per capita amount because they have received cash offsets each year. She noted for the fiscal year ending June 30, 2010 that the town budgeted $67,722 for LLHD services and she explained that this $67,722 contribution was off set by $47,000. However, she stated that there is no justification for this cash off set to continue because Ledyard receives the same services as the other municipalities. She provided some background relative to Ledyard joining LLHD in 2001 and she explained at that time it was agreed that certain town employees would continue to conduct certain public health services. She went on to explain that because these town employees were being paid by the town Page 1 of 9

that LLHD compensated Ledyard by offsetting their per capita rate by an appropriate amount (FYE June 30, 2010 the offset was $47,000). She went on to explain that in 2004 the State Department of Public Health provided a clarification stating that town employees could no longer perform public health services (i.e. wells (permits, tests, filed inspections); on site sewage (installations, repairs, plan reviews, soil testing); Planning/Zoning Public Health Reviews and Recommendations (CO sign-offs); Nuisance Complaints; Emergency Services; all public health inquires and files). She explained that per the State s clarification that a registered sanitarian was required to perform certain public health services. She stated with this clarification an agreement (MOU) was made with the Mayor to transition all the services to LLHD; and on July 1, 2004 LLHD assumed all the public health services. However, she stated that there was no follow up to correct the financial arrangement. She stated that Director Baker Salisbury met with Mayor Allyn in 2007 to discuss a corrective action; however, because the budget was already in place, they agreed to wait until the next budget cycle to correct this financial matter. LLHD Deputy Director Stephen Mansfield noted that the State s 2004 clarification applied specifically to subsurface sewage disposal, permits to discharge, and issuance permits to install. He stated along with the septic services that LLHD took over some other smaller services as well. He continued by reviewing the environmental public health services as follows: Subsurface sewage disposal, day care inspections, Nuisances complaints, wells and water supplies, and numerous other things such as: some environmental emergency preparedness issues such as H1N1 preparations, rodents in a trailer park, unsanitary restaurants, public health threats, etc. Ms. Muggeo noted that municipalities are responsible to provide visiting nursing services. She continued to explain that at the Mayor s request LLHD current uses desk space in the town hall; however, she stated that they have their own equipment such as computer and printer, etc. Councilor Champagne questioned whether there were any public health services that the town could perform to offset the per capita rate. Mr. Mansfield stated to perform public health services that the individual would need to be an agent of the Public Health Director. Chairman Rodolico stated that according to the contract that LLHD Board of Directors have the sole authority to set the per capita rate. He also noted that prior to 2004 that the Building Official was performing these services although he was not licensed or certified. Ms. Muggeo stated that LLHD Page 2 of 9

provides its participating municipalities with the value of an organization that is comprised of twenty-six public health professionals operating with a $2 million budget. She also noted that LLHD also seeks grant funding to support programs through the police department and schools, such as the Safe Teen program and she stated that these programs are provided to its participating municipalities at no cost. Mr. Mansfield stated that the Operations Agreement between the Town and LLHD went into effect in 2001 and he commented that this agreement has not been modified or updated since that time. Ms. Muggeo stated that the Agreement governed how Ledyard was going to be transition to LLHD. She went on to explain that state statute governs how LLHD sets its budget, municipalities representation on the Board of Directors, and how to opt out of the LLHD, etc. Therefore, she stated that rather than have contracts LLHD has Operating Agreements with its participating municipalities. Councilor Diaz questioned what agency provides oversight of LLHD. Ms. Muggeo stated that their audited financial statements are submitted to the State and Federal government each year and she stated that the fourteen members Board of Director s provide financial oversight. Councilor Champagne questioned whether LLHD could provide a comparison list of the per capita rates of other health districts. Ms. Muggeo stated that she could provide a comparison list; however, she cautioned that the list it is not a valuable evaluation because it is not an apples to apples comparison of the services that are provided. She stated that some health districts include nursing or social services responsibilities. Councilor Champagne questioned whether the town s operating agreement would need to be updated and he questioned the process for the town to opt out of participating in the LLHD. Ms. Muggeo stated that state statute governs LLHD s operations and the services that they provide for participating municipalities. Mr. Mansfield explained that per state statute a municipality would need to provide LLHD a one year notice to discontinue LLHD s services. Councilor Champagne recommended the Operating Agreement between the Town and LLHD be updated. LLHD Representatives agreed to work with the town to update the Operating Agreement. Chairman Rodolico suggested that the agreement include a list of the services that LLHD provides to the town. He concluded by stating that LLHD is a good example of regionalization and contracting for services to minimize costs to the taxpayers. IV. REVIEW AND APPROVAL OF PRIOR MEETING MINUTES MOTION to approve the Regular Meeting Minutes of September 1, 2009 Page 3 of 9

VOTE: Moved by Councilor Wadecki, seconded by Councilor Champagne 3 0 Approved and so declared V. FINANCE DIRECTOR S REPORT Finance Director Ms. Hancock reported on the following: (1) Blue Cross/Blue Shield Fund 23 Claims for the month ending August 31, 2009 were $178,343 below the cap; (2) Revenue and Appropriation Summary for August 31, 2009 Chairman Rodolico commented that the Town Council should be receiving this report on a monthly basis. The Finance Committee specifically discussed the following: Legal Fees; consulting fees; contracted services; police overtime; (3) Segal Company retirement calculations Ms. Hancock stated that in accordance with the Retirement Plan document that the Segal Company has always annualized the final year salary. Councilor Champagne stated that the pension calculation is based on the average of the five highest consecutive salary years out of ten years of employment. Chairman Rodolico stated that annualized is not defined, and he commented that there are five different ways something can be annualized. He stated that he does not agree with the annualized method that the Segal Company is using for the pension calculations. Ms. Hancock stated that the Town Council will need to revise the Plan Documents to provide further clarification regarding the terms for annualizing a salary year. The Finance Committee expressed concern with annualizing a final year when an employee has only worked one month of the year. However, they agreed that if an employee has worked more than half the year that it would be fair to annualize the salary. Councilor Wadecki stated that the Plan Document states may not shall annualize the final year salary. The group discussed the differences between the various contracts relative to required years of service, credited years, number of years to be vested, etc. Chairman Rodolico stated rather than using the Segal Company for this work that the Human Resources Director should be handing the retirement calculations and he commented that the Finance Director should be checking the calculation. Ms. Hancock suggested that the Finance Committee invite Human Resources Director Karen Morton to a meeting to further discuss the retirement calculations and the language contained in the Retirement Plan Document; (4) Accounts Payable Ms. Hancock stated that a few months ago they began alternating the check runs between the general fund and the special fund, so that each check run is performed every other week. She stated between this payment schedule and the once a month Committee meetings that that some bills are over thirty days before they are paid. Therefore, she stated that she is Page 4 of 9

seeking a solution and she questioned whether bills can be submitted and paid before the Committee approves payment. The Finance Committee stated that the Committee must approve the payment of invoices before the bills can be paid and they questioned whether the town was being charged a late fee or interest on the bills over thirty days. Ms. Hancock stated that they have not been charged a late fee or interest on the bills, however, she stated that in some cases the bills are progress payments for projects such as the High School Roof project. The Finance Committee stated that most contractors understand that municipalities have procedures that must be followed to pay invoices; (5) WPCA Ms. Hancock noted that Ordinance # 105 An Ordinance Establishing a Water Pollution Control Authority for the Town of Ledyard requires that the Treasurer set up separate accounts for water and sewer and she questioned the intent of this language. Councilor Wadecki stated that the WPCA was co-mingling the water operations and sewer operations funds. She went on to explain that per state statute that the water and sewer funds must be kept separate, therefore, the Town Council wanted this clearly stated in the ordinance. She stated that separate accounts does not necessarily mean separate bank accounts, however, she stated what it does mean is that the records of the funds will be accounted for separately from each other. She went on to note that some employees work for both the water and sewer operations, such as the Water and Sewer Director, however, she explained that the town should not have to write two separate payroll checks for these employees. Therefore, she stated that the accounting would reflect that two-thirds of the salary was paid from water operations and one-third was paid from sewer operations. Councilor Champagne noted the Town Council s letter dated September 1, 2009 to the WPCA regarding their proposed rate increase. He continued by questioning the status of the WPCA financial obligation to the town for the WPCA s employees pension and health insurance costs. Ms. Hancock stated that the WPCA s financial obligation relative to pension and health insurance was current for Fiscal Year 2008/2009; (6) ABC Tree Removal Service will be vacating the former town garage property. All their trucks and equipment should be off the property by the end of the week; (7) Comp time liability report The comp-time payout for the former Town Planner was about $11,200. The Committee noted that they were suppose to be receiving a com-time liability report on a quarterly basis. Page 5 of 9

VII. OLD BUSINESS 1. No action on the Continued discussion and possible action regarding the License & Indemnification Agreement between the Town of Ledyard and ABC Professional Tree Service of Colchester for the use of the former town garage property dated April 13, 2009. 2. No action on the Discussion and possible action to reinstate to the Fiscal Year 2009/2010 budget the Assistant tot the Director of Administrative Services as requested by the Director of Administrative Services/Mayoral Assistant. 3. Any other old business proper to come before the Committee. None. IX. NEW BUSINESS 1. Councilor Champagne noted that the Committee met with Ledge Light Health District Representatives earlier this evening and discussed the District s request for the town to include an adjustment to their per capita rate in the up coming Fiscal Year 2010/2011 budget. 2. MOTION to recommend the Town Council grant a bid waiver to CLA Engineers in the amount of up to $10,000.00 for MS4 Program compliance needs in Fiscal Year 2010. Moved by Councilor Champagne, seconded by Councilor Wadecki Discussion: Public Works Director/Town Engineer Steve Masalin explained that since the inception of the MS4 program mandate, the Town has retained the services of engineering consultants to provide substantial support in keeping pace with program requirements. He stated that these requirements will continue to demand ongoing attention and action, including storm water sampling, lab analysis, illicit discharge monitoring and ordinance development, and annual reporting. He stated that although this work was handled in-house for a time when a Town Engineer was on staff, that these services have been provided largely through consultants. He stated that in August 2006 the Town Council approved a bid waiver for Nathan L. Jacobsen & Associates, Inc. to provide consulting services to meet MS4 Program compliance needs. He explained that Jacobsen was selected through a qualifications based process, and that they have been Page 6 of 9

providing services since the inception of the program in Ledyard and have been listed on the standing bid waiver list. However, he stated that although Jacobsen has been mostly responsive, that they have been deficient in attending to some of the program s sampling needs. He continued by noting a letter from the DEP citing Ledyard for delinquency in meeting its requirements associated with sampling at the Highway Garage/Transfer Station. He stated that he informed Jacobsen to stand down from providing further service and he enlisted CLA Engineers to handle the most pressing sampling needs. He stated that this work will cost about $3,500 between collection, lab work, and reporting. He stated that his immediate intention is to retain compliance, and he noted that additional services will be required every year. He stated that CLA Engineers developed the initial Storm water Management Plan and that they administered the initial program sampling. He went on to note that CLA Engineers were a close second in the original selection process. Therefore, he stated that he is requesting a bid waiver to CLA Engineers in an amount up to $10,000 for consulting services associated with MS4 Program compliance. He stated that funds for this service are available in account 1-0300-020-0120 (Consulting Engineers). Councilor Champagne questioned the reason the public works employees can not perform this work. Mr. Masalin stated that the storm water testing is not in their job description and he addressed the need to collect the water samples at various hours of the day and night depending on when it rains and the costs associated for overtime and meal allowances. He stated that a staff town engineer could perform this MS4 compliance work. Chairman Rodolico questioned whether the cost for a consultant to perform this work was less expensive than a staff town engineer. He continued by commenting that when the town had a staff engineer that there was always work that had to be contracted out. Councilor Champagne stated at their August 4, 2009 meeting Mr. Masalin addressed the town s engineering administration needs and average costs. He stated that there is some engineering work that the town will always have to contract out; however, he stated that there is also a category of things that could be done in-house if they had the right person who had enough flexibility. He went on to state that there is work that has been put on the back burner that needs to be done and he stated with the right support that Mr. Masalin s talents could be used more. Mr. Masalin stated Page 7 of 9

VOTE: that the value of a staff engineer greatly depends on that person s qualifications. He stated that Mr. Georgette s qualifications were exemplary and he stated that Mr. Georgette contributed a lot to Ledyard in the short time that he was here. Chairman Rodolico addressed the salary to employ a full time staff engineer with the qualifications of Mr. Georgette and he questioned what the town spent on engineering consultants during the year. Councilor Champagne stated that a staff engineer could also be used by the WPCA and the Board of Education. Councilor Diaz questioned whether the town identified all the engineering firms in this area that provide services such as the MS4 compliance work. Mr. Masalin stated that the scope of this work is expected to cost up to $10,000; and he explained that he has requested a bid waiver for CLA Engineers because they developed the initial Storm water Management Plan; administered the initial program sampling, and were a close second in the original qualification based selection process. He stated that there are a number of engineering firms that perform this MS4 compliance work, however, he stated that this work needs immediate attention. 2 1 Approved and so declared (Diaz not in favor) 4. MOTION to recommend the Town Council approve two refunds for the total amount of $3,596.01 that exceeded $1,200.00 in accordance with Tax Collector departmental procedures. Moved by Councilor Champagne, seconded by Councilor Diaz Discussion: Councilor Champagne noted that Town Council approval is required for tax refunds in excess of $1,200. He stated that a copy of the tax refund request for overpayment has been provided. VOTE: 3 0 Approved and so declared VOTE: 5. Any other new business proper to come before the Committee. MOTION to recommend the Town Council grant permission to process the retirement for Ernest R. Briggs who will receive $266.09 monthly effective September 1, 2009. Moved by Councilor Wadecki, seconded by Councilor Diaz Discussion: Councilor Champagne noted that the Committee extensively discussed the retirement calculations earlier this evening under the Finance Director s report. 3 0 Approved and so declared Page 8 of 9

VIII. VOTE: ADJOURNMENT Councilor Diaz moved the meeting be adjourned, seconded by Councilor Wadecki. 3-0 Approved and so declared, the meeting was adjourned at 9:15 p.m. Respectfully submitted, Peter Champagne Finance Committee Chairman Page 9 of 9