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HomeMy WebLinkAbout2007-03-28 Finance Committee Minutes Finance Committee Meeting March 28, 2007 The meeting convened at 7:35 p.m. in the Conference Room, 16 Lowell Street, Reading, Chairman Andrew Grimes, Vice Chairman Chuck Massachusetts. Present were Robinson, Finance Committee members George Hines, Marsie West, Hal Torman, Paul Bolger, Ronald Powell and David Greenfield . Also present were Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur and DPW Director Ted McIntire The meeting begun reviewing the minutes from the FinCom meetings dated March 7, 14 and 21. On motion by Torman seconded by Hines to accept the minutes from the March 7, 2007 meeting. Fincom voted 7-0-1, Marsie West did not vote. On Motion by Hines seconded by Torman to accept the minutes from the March 14, 2007 meeting. George Hines questioned the second page of notes. It does not say that the revolving fund is to pay for the lights. The sentence is to be reworded as Superintendent Schettini noted that revolving funds can only be used for what they are designed for and using them to pay for the completion of the lights is an appropriate use. Further stated the money from ticket sales was used for installing lights. Fincom voted 8-0-0. On motion by Bolger seconded by Greenfield to accept the minutes from the March 21, 2007 meeting. Fincom voted 7-0-1, Powell did not vote. Bob LeLacheur announced the next Fincom meeting is scheduled for April 11, 2007. He reminded Andrew Grimes that the Fincom report should be in by April 4. The discussion then moved on to the Fiscal ‘08 Budget. LeLacheur reviewed three items that need to be discussed: 1.Financial Platform – does not have a Financial impact on 08 budget 2.Capital Plan – Revote Article 7 3.Sewer fund - Revote on Line X5 Article 7 needs a revote. The Financial Systems estimate has gone up to $1.25mil. LeLacheur mentioned there are other boards that have expressed a desire to meet before Town Meeting. FINCOM would like to hear from other boards to talk about the financial system. They are going to try to schedule this at the next FINCOM meeting scheduled for April 11. LeLacheur went through the revisions on page 24 of the budget. On page 28 schools have expressed to finish the WAN so that all their school buildings can be hooked up. LeLacheur reported that the scope of the project has not changed. More technology will be moved to undisclosed secure locations around town. A walk through is planned to make a decision. Another element of the project will do electronic document storage and retrieval. These are some of the new things that should be done all at once. These items can be discussed further at the April 11 meeting when the other boards attend. George Hines mentioned early cost estimates coming in lower. LeLacheur said the first part of the project has. He mentioned all the numbers previous to page 28 are exceptionally reliable estimates by vendors, and guaranteed through July 5. Hines asked if the document storage includes backup and is it a recurring cost annually. LeLacheur reported that there is an annual cost. Do not know if it will be in-house or off site storage as of yet. Amount of storage is being considered. Peter Hechenbleikner said plans and construction documents need to be stored. Hal Torman asked if RMLD has been informed about the utility billing module scheduled for ’09. Bob mentioned they are interested in the document storage, but Peter said the light department updated their financial & billing system 3 years ago. There have been talks about the need to integrate with them in regards the payroll system but this is not shown in the budget because that is a cost they will fully bear. Other questions asked: Paul Bolger –In regards to the presentation he would be interested in who is going to own this in the town and if that person doesn’t exist how much is that person going to cost us and secondly what kind of cost savings would result from this investment. David Greenfield – will the meeting cover more detail about the different bids that were provided than Pros & Cons. Ronald Powell – Does the document storage come with its own search engine? Answer Bob – yes. Chuck Robinson – How many bids? Answer Bob – 2 finalists, looked at 7 or 8 companies seriously, looked at vendor reliability which is most important factor in one stop shopping. Hal Torman – Do you feel you compromised some of the capabilities of some of these modules because of one stop shopping. Peter reported that has been discussed quite a bit and that there were a lot of people involved from every department across the Town. Andrew Grimes – How much historical data can be stored. Answer Bob - in terms of document storage as much as needed. All of the financial data. Bob discussed some of the features of document storage, exporting to Microsoft office products. Peter mentioned document management – setting priorities. Minutes would be available to the public. Town Meeting, Selectman, School Committee. George Hines – How far back do have to keep paper copies. Peter – as far back you have them. Copies have to be kept at the Library and Town Hall in that case it will be available electronically. + st How much support are you buying? Bob - 1 year buying setup and training that should last 3 years. George Hines – $5,000 for insurance buys 3 years to make sure everything works. George Hines – The cost to train for the utility billing seems very high, seems higher than the software. Bob explained this is the hardest module to train, it is highly complex. Peter Hechnebleikner mentioned that we are installing a wireless reading system, and that it is partially done for water and sewer. Bob LeLacheur reported that the training daily rates are guaranteed; if we need more training, the same rates will apply; if we need less we do not have to pay. We are obliged to zero consultant and zero training if we do not need it. George Hines asked if the independent consultant is going to be on board during this process. Bob said it is yet to be decided, but it was likely. Andrew Grimes discussed having a presentation at the next meeting to have other departments discuss the software. Bob suggested either April 9 or 10 so Gail LaPointe could attend. He also suggested that if any one has any questions to email them to him before the meeting. The meeting will be on Tuesday, April 10. David Greenfield – Are new versions of the software included. Bob LeLacheur said they are. There are two types of software updates: they release annually improvements and immediately fixes if there are bugs or state mandates. Bob LeLacheur moving on to Page 30 Line item X5 to reduce the amount by $268,275. Proposing to debt service it for 5 years. Article 7 On motion by Grimes seconded by Torman to amend the Capital Plan from $750,000 to $1,250,000. Fincom voted 8-0-0. Article 13 On motion by Torman seconded by Powell to amend Line X5. Fincom voted 8-0-0. Article 15 On motion by Robinson seconded by Grimes to establish a stabilization fund in the amount of $60,199.22 for the purpose to fund post employment benefits George Hines - How many other towns are doing this? Bob L. reported none. Marsie West – Is there any advantages to setting this up now? Peter H. stated that this is the only way to set this up now if you want to or the money will go into free cash. David Greenfield – Will some other formal direction come to this? Peter H. said the state needs a way to develop a way to invest. Paul Bolger – Why now? Maybe the state will find a way to pay for it. Peter H. said another option would be to add this to the existing stabilization fund which is an unrestricted stabilization fund. Bob LeLacheur suggest to throwing this into the pension fund. If this happens the line budget needs to be changed. Ronald Powell suggests putting it in the unrestricted stabilization fund. Chuck Robinson suggests putting it towards benefit costs as another option. Paul Bolger – Is any one else complying with this law. Chuck Robinson says to put it into the unrestricted stabilization fund. Andrew Grimes suggest not to run with this motion. Fincom voted 0-8-0 On motion by Grimes seconded by Hines to increase Line F1 by $60,200. Fincom voted 8-0-0 Article 14 Woodland street pavement $94,264. Abutters have asked to keep the cost low. Selectmen have not voted on this. Action Pending, waiting for the Selectman to vote. Article 18 Local share to the Town for non-participating cost for the Downtown Improvement project. Best estimate is $650,000. Project is from 129 down to Washington Street. The Historic district is considered from Salem Street to Haven Street. 100% of the project within that area is paid for. From Haven to Washington Street they will only do the basic project which is the roadway & traffic signals. Tried to get the Light department to buy and install all of the street lights for the entire project and have that be our share and pay the light department over the next 30 years and not have to do a debt authorization for it, Mass Highway did not understand the concept. On motion by Hines seconded by West to accept the subject matter of Article 18. Fincom voted 8-0-0 Article 21 The tennis courts at Birch Meadow are a bank of 6 tennis courts. Some are in such bad shape. The Friends of Reading Tennis have gone out and fund raised $150,000 of the estimated $350,000 to $375,000 cost of the project; the rest of the cost would be by the Town. We would file the under MSVA in the event that we could get the project partially funded under the High School project. On motion by Grimes seconded by Hines to accept the subject matter of Article 21. Fincom voted 8-0-0 Article 22 Is to create a third artificial turf field most likely at the Parker Middle School. The total estimated cost is $650,000. We have a $200,000 grant from the state. Organizations have donated $15,000 and $60,000. A turf field increases playing times and reduces injuries. We do not have any more fields to build. This seems like a reasonable project. We expect this will be under construction this summer. We need to make sure we secure the state grant. The reason for Parker is it has the stands and you can get a full scale field. The field is fenced and there will be rules and regulations posted. Residents will have access to the fields. On motion by Hines seconded by Powell to accept the subject matter of Article 22. Fincom voted 8-0-0 Article 23 Ted McIntyre discussed the article. There is a sewer problem at Sunnyside Ave and Fairview Ave. There is sewer restriction on this site and they are looking to replace a 3” main to a 12” main. This was initially in the budget as a project to be paid in a lump sum in ’08 in order to soften out the rates it makes more sense to authorize the debt. The cost is $365,000. On motion by Hines seconded by Powell to accept the subject matter of Article 23. Fincom voted 8-0-0. Article 11 There are 4 revolving funds that require annual renewal. Compost bin revolving fund $449. The conservation consulting fund they are requested authorization of $25,000. The inspection fund goes back to 2004, took the building permit fees for the landfill, Archstone and the poultry farm. Health clinic revolving fund takes third party refunds, plus we take in money from different clinics. The estimate expenses for this fund are $25.000. On motion by Grimes seconded by West to accept the subject matter of Article 11. Peter Hechenbleikner will have Gail LaPointe run a report for all revolving funds. This includes school and Town. Fincom voted 8-0-0 Article 20 Replace 1 pumper truck ever 5 years. The oldest one is 20 years old and the youngest should be new. The cost estimate is based on what has been done around the area. The 2006 estimates are $274,000. The emission standards have changes and the equipment needs to replace. The request is for $410,000. The old vehicle will be traded. The vehicle will be stripped and the named would be removed. This is not included in the price. On motion by West seconded by Grimes to accept the subject matter of Article 20. Fincom voted 8-0-0 Article 19 On motion by Grimes seconded by Powell to accept the subject matter of Article 19. Fincom voted 8-0-0 On motion by Grimes seconded by Hines the meeting was adjourned at 9:36 PM on a vote of 8-0-0 Respectfully submitted, Secretary