MINUTES
LITCHFIELD SCHOOL BUILDING COMMITTEE
LITCHFIELD INTERMEDIATE SCHOOL LIBRARY
JUNE 16, 2005
A meeting of the Litchfield School Building Committee was held on Thursday, June 16, 2005, at 7:00 p.m. in the Litchfield Intermediate School Library.
Present were: Jack Healy, Chairman, Mac Bramley, Bill Buckley, Jeff Zullo, Bob Blazek, Kent Gilyard, Lynn Chapman and Stacie Kavle.
Also Present: Leo Paul, First Selectman, BOE Members Diane Knox, Don Falcetti, Wayne Shuhi; Tim Callahan of HSNP; Bruce Walpole of O & G, David Wilson, Town Treasurer; Jay Chittum, Superintendent and Cynthia Politano, Finance Director; Public and the Press.
Approval of Minutes
Motion was made by Jeff Zullo to approve the minutes of the June 2, 2005 meeting, seconded by Kent Gilyard.
Motion Carried. All votes were in the affirmative. There were no abstentions
Public Participation
Winnie Harrison Are sprinklers going to be put in the schools? Would someone comment on the statement that David Wedge guaranteed reimbursement would be $9.7M?
Betsy Glassman There are two underground storage tanks; one at LHS and the other at LIS. If and when is a Phase II going to be done. Regarding the water line are we talking about this for school sprinklers or irrigation sprinklers? If its both, I suggest PHPF should pay for the water line.
Communication - None
Finance Subcommittee Update
Motion made by Jeff Zullo to approve payment of a bill submitted by O&G for payment to Crest Graphics in the amount of $623.63, invoice #22932 LIS $304.71; invoice #22933 LHS $318.92, corrected for inappropriate sale tax, seconded by Kent Gilyard.
Motion Carried. All votes were in the affirmative. There were no abstentions.
Mac Bramley We recommend payment to HSNP of an additional 5% of Construction Drawings contractual amount plus 100% of unpaid incidentals bringing amount advanced to 80% of contracted amount.
Motion made by Jeff Zullo to approve payment of two invoices to HSNP: invoice # 15346 LHS approved $20,672.85 of $41,345.70 billed under base contract plus $1,955.00 Structural Consultant plus $8292.33 printing and incidentals for a total of $30,920.18 and HSNP invoice # 15347 LIS approved $10,182.15 of $20,364.30 billed under base contract, seconded by Kent.
Motion Carried. All votes were in the affirmative. There were no abstentions
Jeff Zullo mentioned that we are paying a structural consultant so it seems we had a structural analysis.
Motion made by Mac Bramley that the Building Committee authorize in the absence of the Chairman, the Vie Chairman is authorized to approve payment of bills; in the absence of the Chairman and Vice Chairman, the Secretary is authorized to approve payment of bills; and in the absence of the Chairman, Vice Chairman and Secretary, the Treasurer is authorized to approve payment of bills, seconded by Jeff Zullo.
Discussion:
Jack Is it possible to amend that Motion to approve signing of contracts? I think it is important to the BC to have someone other than the Chairman.
Mac Bramley I think we should do a separate motion.
Motion to Amend was made by Jeff Zullo to add as approved by the Building Committee, seconded by Kent Gilyard.
Bob Blazek I am more comfortable with just the Chairman and Vice Chairman.
Motion to Amend Carried. All votes were in the affirmative. There were no abstentions.
Kent Gilyard I suggest just three people.
Lynn Chapman If you are going to have just three people, you should skip me.
Motion Carried. All votes were in the affirmative except Bob Blazek who voted in the negative. There were no abstentions.
Bruce Walpole Its publicly noticed that there is a bid opening. Someone from the Town and Building Committee should be there. We will be taking in bids, reviewing them and making a recommendation to the BC.
Mac Bramley There should be at least one BC Member present.
Bruce Walpole We invite the entire BC to be present.
Jack Healy I think what were saying is that it should be specified that one member of the BC should be present.
Dave Wilson, Town Treasurer was asked to respond to the following questions:
Question 1) What duration (on the project) is the School Building Committee/Building Project responsible for the short term interest paid on the BANs?
Question 2) Is there clearly defined use for the interest we earn while the BAN proceeds are reinvested prior to making payments for the project costs?
His answers to these two questions are as follows:
Answer 1) Until the project is completed and the last BAN has matured. The estimated short term interest for the project is $985,000 per our letter to your Committee on Jan 6th, 2005 (below)
January 6, 2005
Mr. Jack Healey, Chairman
Town of Litchfield School Building Committee
Board of Education
P. O. Box 110
Litchfield, CT 06759
Re: Interim Financing for School Building Project
Dear Jack;
During the school building project construction period, some of the costs have been anticipated to be funded initially with short-term (one year or less) Bond Anticipation Notes (BANS). This Interim Financing (short-term) approach was planned to provide a reduction in the overall cost to Litchfield taxpayers of financing the project since interest rates on BANS are less than long-term financing. By September of 2009, all the Interim Financing is planned to be refinanced with permanent 20 year Bonds. Additionally, as you know, Interim Financing costs are capitalized (included) as a cost of the Project that is not to exceed $33,000,000. Long-term financing costs are not capitalized to the Project but are charged to the Towns Operating Budget.
Since interest rates are rising and economists are projecting that the federal funds rate may be 4% or higher by the end of 2005, we have prepared the attached projected amount of Interim Financing costs which range from $947,633 to $1,026,201. For this reason, we believe the present School Building Project estimate of $985,000 for Interim Financing (short-term interest) is appropriate. If the eventual Interim Financing amount exceeds the $985,000 we will charge the excess to the Town operating budget instead of the School building Project. On the other hand, as we get closer to completion of construction and Interim Financing, if the amount will be less than the $985,000, we will advise you in order that the savings may be used for other costs of the School Building Project.
Short-term interest rates continue to climb upward and are beyond our control. The Federal Funds interest rate has gone from 1.5% in the middle of August 2004 to 2.25% in the middle of December 2004.
Since interest on long-term bonding will be charged to the Town budget, it will benefit the School Building Project and the Town by obtaining long-term financing as soon as possible. Once all the bids are in, and it is clear that the project can be completed for under $33,000,000, long-term financing can be completed. The sooner that happens, the less we may have to pay in short-term interest costs for this Project.
____________________________ ____________________________
Leo Paul, Jr. David T. Treasurer
First Selectman Treasurer
Answer to the second question:
Answer 2) The historic use has been to add it to the General Fund and the operating budget. The interest this year is being used this way. The Town may elect to use the interest to increase the Cap for the Project by resolution at Town Meeting or the Town could elect to use the interest earned to offset the interest expense of the BANs, thus netting out the interest expense of the project. If this resulted in the project budgeted interest expense not being used the excess could be used for project costs.
Architect and Construction Manager Update
Jack Healy I would like to address three things: Issue 1) I asked Peg to bring the file on the underground storage tanks.
Tim Callahan A Phase I was done by PTC and identified areas where there is a possibility of hazardous materials. On the LHS tank; there was a spill in 1995, the tank was removed and area was remediated. When the new tank comes out, they will again investigate for any more oil or if remediation wasnt completed. The new tank is a registered tank within an acceptable life. It is standard practice to check for spills when removed.
Jack Healy Issue 2) The water line: has that issue been put to bed?
Tim Callahan CES issued a report and forwarded it to the entire BC. The report indicated what protocol had been taken. Bill Buckley and Steve Collin will finalize report.
Bill Buckley Id like to go back and review report to get an explanation of the 25 lb. drop in pressure. It still needs to be looked at and resolved.
Jack Healy Issue 3) Sprinklers: What is the amount of sprinkler protection we are going to have?
Tim Callahan LHS will be fully sprinklered.
Jack Healy That includes the Gymnasium, does it include basement boilers?
Tim Callahan Ill check on that. LIS is partially sprinklered. The basement area will be, as will the stage area. We need a generator and water pump for these areas. New construction is fully sprinklered. We also have to make the building fire compliant with smoke barriers, an area of refuge, rated doors, a safety plan for egress.
Jeff Zullo If we end this project, we are exposing children to five more years of potential fire hazards.
Bill Buckley I thought at the beginning of the project we had a discussion about this building being under order, which was put aside until the end of the project.
Peg Perusse Both buildings, there are all kinds of things the Fire Marshall was willing to hold back pending the first project.
Bill Buckley Somebody would have to raise the questions with the Fire Marshall if this project does not go forward, whether he will hold off until the next project.
Peg Perusse The current Fire Marshall is the only one with authority to require these orders, which is quite possible.
Bill Buckley The replacement oil tank will be double walled?
Tim Callahan The tank will be inspected. It is double walled and meets current requirements. If its fine, it will be reinstalled behind the school.
Jack Healy In the project budget, we have allocated money for removal and remediation if needed.
Tim Callahan Inland/Wetland I anticipate a continuance and approval in August. P & Z - the same. The DEP submission was revised and resubmitted. We expect approval very shortly. STC - received comments, addressed and they are going back for review. Everything is in line and we should have all approvals by the end of August.
Jack Healy P & Z informed me that they do not have funds to pay a consultant engineer to meet with Peter Herbst. The BC has authorized Peter Herbst to use $2,500.00 to meet with consultant engineer.
Tim Callahan We have tried to reach the consulting engineer, and he has not responded.
Bill Buckley We should draft a letter to P & Z and tell them we have authorized this expenditure. We should make a point; if the consultant approaches 70% of expenditure, they should notify us in case we decide to authorize more money.
Jeff Zullo Should we ask the Chair if they stipulated the consultant not to speak to us?
Jeff Zullo The LHS review completion is scheduled for July 8TH. LIS comments - When to you expect to have them back to the State?
Tim Callahan I dont know exactly, but very shortly.
Bruce Walpole Hazardous Abatement Consultant contract could you notify them that pending referendum you plan to award them the contract?
Bill Buckley At the last meeting there was a motion that pending the recommendation by the Construction Manager, the Building Committee directs the O & G to prepare contracts for INCOR GROUP for signature and provide contract to the BC Chairman and have Chairman ready to execute with advice of counsel.
Bruce Walpole That is not the contract I am talking about. INCOR is all set. I am talking about the abatement consultant. Eagle submitted a proposal for services that need to be provided during removal.
Motion was made by Bill Buckley to authorize Chairman to work with Eagle to prepare new contract or modify current contract; that they provide for work inspecting, overseeing and consulting, and have Chairman ready to execute with advice of counsel, seconded by Kent Gilyard.
Motion Carried. All votes were in the affirmative. There were no abstentions
Bruce Walpole We have identified five temporary teaching spaces at LHS and made up a drawing which building officials and the Fire Marshall will have to approve. They are in the media center and current auto shop, using temporary partitions.
Motion was made by Bill Buckley to authorize O & G to proceed with construction of temporary partitions that are necessary to construct temporary classrooms on a time and material basis consistent with existing Construction Manager contract and subject to referendum.
Motion Carried. All votes were in the affirmative. There were no abstentions
Discussion of how are contracts to be treated and evaluated
Jeff Zullo We discussed this earlier - A recommendation coming from O & G to Chairman and Vice Chairman.
Bill Buckley If the project is rescinded, how do we treat outstanding bills?
Jeff Zullo There is a possibility, if the project is rescinded, after the vote, the BOS, BOF and BOE can reinitiate the project as is or with some changes and maintain this BC in its functionality.
Bill Buckley I dont think it was right last time that the BOS disbanded the BC.
Technology Update None
Future Agenda Items
Peg Perusse presented applications for energy saving incentives.
Motion was made by Bill Buckley to authorize Chairman to execute energy savings application and submit to Northeast Utilities, seconded by Jeff Zullo.
Motion Carried. All votes were in the affirmative. There were no abstentions
Stacie Kavle I have never worked with HSNP and never met them prior to the first Building Committee.
HAPPY BIRTHDAY KENT!
Motion to adjourn was made by Bill Buckley at 8:45 PM, seconded by Lynn Chapman.
Motion Carried. All votes were in the affirmative. There were no abstentions
Respectfully submitted,
Kelli L. Green, Recorder