MINUTES
LITCHFIELD SCHOOL BUILDING COMMITTEE
LITCHFIELD INTERMEDIATE SCHOOL LIBRARY
JULY 7, 2005
A meeting of the Litchfield School Building Committee was held on Thursday, July 7, 2005, at 7:00 p.m. in the Litchfield Intermediate School Library.
Present were: Lynn Chapman, Mac Bramley, Bill Buckley, Bob Blazek, Chris Canfield and Gary Waugh. Jack Healy and Stacie Kavle were also present.
Also Present: Leo Paul, First Selectman, BOE Members Diane Knox, and Wayne Shuhi; Bruce Walpole of O & G, Jay Chittum, Superintendent, Peg Perusse, Business Manager and Cynthia Politano, Finance Director; Public and the Press.
Meeting was called to order at 7:01 PM by Lynn Chapman.
Jack Healy, Chairman arrived.
Approval of Minutes
Motion was made by Mac Bramley to approve the minutes of the June 16, 2005 meeting, seconded by Bob Blazek.
Motion Carried. All votes were in the affirmative. There were no abstentions.
Motion was made by Mac Bramley that BC accept a letter dated February 16, 2005 from Town Treasurer to replace the letter incorporated into the minutes of the June 16, 2005 meeting, seconded by Lynn Chapman.
Motion to Amend Motion was made by Bob Blazek to accept email, seconded by Lynn Chapman.
Motion to Amend Carried. All votes were in the affirmative. There were no abstentions.
Motion Failed. All votes were in the negative except Mac Bramley who voted in the affirmative. There were no abstentions.
Motion was made by Bob Blazek to accept the February 16, 2005 letter and attached email from the Town Treasurer to supersede his January 6, 2005 letter incorporated into the minutes of June 16, 2005, seconded by Lynn Chapman.
Motion Carried. All votes were in the affirmative. There were no abstentions.
(see following letter & email)
February 16, 2005
Mr. John R. Healy II, Chairman
Litchfield School Building Committee
9 Naser Road
Litchfield, CT 06759
Re: Review of Estimated Finance Costs for School Building Project
Dear Jack:
We reviewed the estimated finance cost of the school building project to determine whether you should maintain your original projection or reduce the amount. We believe your finance costs should remain as proposed because this is a multi-year construction project and short-term interest rates are predicted to increase.
In order to keep our interest rates as low as possible we may initiate up to eight financing transactions over the next three to four years, making the $250,000 put aside for bond issuance costs necessary.
After careful consideration and consultation with our financial advisors, IBIC, we anticipate interim financing costs to be somewhere between $950,000 to just over a $1,000,000. An advantage to using interim financing (BANS) is that the interest rates for borrowing are lower and are capitalized, or included in the cost of the project. Long-term financing is not capitalized but rather charged to the Town’s operating budget. By September 2009, all our interim financing will be refinanced with 20-year bonds.
Because short-term interest rates are on the rise and projected to continue upward, our recommendation is to keep your $985,000 proposed finance costs as they are. If we can reduce the finance costs as the project progresses, we will certainly advise you to redirect those funds to other project costs.
Thank you for your consideration.
____________________________ ____________________________
Leo Paul, Jr., First Selectman David T. Wilson, Treasurer
Attachment
c: Jeffrey J. Zullo
Cynthia Politano
From: dtwilson
To: jack.healy@erm.com ; staciefkavle@edkavle.yahoo.com
Sent: Thursday, July 07, 2005 4:04 PM
Subject: Amend minutes tonight
Hi Jack, It has come to my attention that the letter of Jan 6th 2005 that I emailed to Kelli for the minutes at tonight's meeting was not the final that Leo and I signed. It was a draft in my file. The actual letter is attached. Please amend the minutes to reflect the correction to include the final letter.
Please also enter into the record that my commitment to hold the Short Term Borrowings at $985,000 for the duration of the School Project still remains. We will certainly be able to package the financing of Long Term Bonds to control the Short Term interest. You will also find the Performa on short term interest we worked from attached.
Should you have any other concerns please feel free to call me.
Thanks
Dave
David T.Wilson
760 Bantam Rd
Bantam, Ct 06750
860-567-3123
Public Participation
Peg Perusse – Town’s Insurance Company sent a letter regarding builder’s risk insurance.
Bruce Walpole – The insurance limits we’re suggesting are insurance limits recommended to us on other school projects.
Mac Bramley – Does regular school insurance provide for construction? Does the BOE policy provide for liability during a construction situation?
Peg Perusse – We are required to have builder’s risk insurance.
Communication
Bob Blazek – The Board of Selectmen is glad that the community supported the project and wishes us the best.
Gary Waugh – At the Board of Education meeting there was loud and sustained ovation for the Building Committee and the success of the project.
Finance Subcommittee Update
Mac Bramley – there are seven bills to pay
1. Crest Graphics – a bill for photo copies totaling $208.48 of which $129.08 is attributed to LHS and $79.40 LIS.
Motion made by Bill Buckley to authorize payment to Crest Graphics in the amount of $208.48, seconded by Bob Blazek.
Motion Carried. All votes were in the affirmative. There were no abstentions.
2. Oles & Jerram for $500.00– the appraisers were utilized by Peter Herbst for presentation to Planning & Zoning, showing no decrease in value to Tapping Reeve by expansion to LHS. Bill is split $330.00 to LHS and $170.00 to LIS.
Motion made by Bill Buckley to authorize payment to Oles & Jerram in the amount of $500.00, seconded by Bob Blazek.
Motion Carried. All votes were in the affirmative. There were no abstentions.
3. Attorney Peter Herbst – invoice dated June 28, 2005 for various sundries. Hourly charges: 16.5 hour $3,610.00. Northwestern CT Title Services $100.00, of which hourly charges are attributed to LHS $2,382.60 and LIS $1,227.40 – other charges: $66.00 LHS and $34.00 LIS.
Motion made by Bill Buckley to authorize payment to Peter Herbst in the amount of $3,710.00, seconded by Bob Blazek.
Motion Carried. All votes were in the affirmative. There were no abstentions.
4. Waterbury Republican – ads for bid packages for hazardous abatement totaling $791.20 of which $395.60 LHS and $395.60 LIS.
Motion made by Bill Buckley to authorize payment to Waterbury Republican in the amount of 791.20, seconded by Bob Blazek.
Motion Carried. All votes were in the affirmative. There were no abstentions.
5. Litchfield Public Schools – reimbursement for costs incurred to move classrooms – the purchase of boxes $4,198.60 or $2,395.20 LHS and $1,799.40 LIS.
Motion made by Bill Buckley to authorize payment to Litchfield Public Schools in the amount of $4,198.60, seconded by Bob Blazek.
Motion Carried. All votes were in the affirmative. There were no abstentions.
6. INCOR Group – regarding asbestos abatement, invoice totaling $41,625.00 of which $30,622.80 LHS and $11,002.20 LIS.
Motion made by Bill Buckley to authorize payment to INCOR Group in the amount of $41,625.00, seconded by Bob Blazek.
Motion Carried. All votes were in the affirmative. There were no abstentions.
7. Herbert S. Newman – bill for $61,710.00 to 90% of completion of contract plus totaling $2,872.99 – if we exclude Wilbur Smith Associates we would pay HSNP to 90% or $41,345.70 LHS and $20,364.30 LIS plus incidentals split as $1,366.90 LHS and $673.20 LIS totaling $2,040.00
Motion made by Bob Blazek to authorize payment to Herbert S. Newman in the amount of $63,750.00, seconded by Bill Buckley.
Technology Update - None
Construction Manager Update
Bruce Walpole – Hazardous abatement is started. It is a tight schedule. I want to ask the Building Committee to approve $2,000.00 for same day turn around on testing. They can proceed to break down containment if the test comes out clean.
Motion made by Bill Buckley to appropriate $2K for asbestos testing to expedite the project, seconded by Mac Bramley.
Discussion:
Bill Buckley – Is the asbestos removal contractor working Saturdays?
Bruce Walpole – Yes
Bill Buckley – It is prudent for us to do final testing of the air and wipe before the students go back to school.
Jack Healy – We can look into it. Let’s take a look to see what is in the contract.
Jay Chittum – I suggest you talk with Eagle.
Peg Perusse – The company doing the testing is separate from the one doing the abatement.
Motion Carried. All votes were in the affirmative. There were no abstentions.
Jack Healy – I asked Tim Callahan to talk about where things were with SFU, P & Z and Inland/Wetlands.
Gary Waugh – Has there been resolution about the water pressure?
Bill Buckley – I have been working with the Engineer. There are still outstanding issues.
Mac Bramley – Can we ask all subcontractors to split bill between the two projects. If they do not, we will apply 2/3 to LHS and 1/3 to LIS.
Peg Perusse – I would prefer two AIA contracts.
Bruce Walpole – You’ll likely get two contracts. In case of a combination bid, they’ll submit two separate invoices.
Bill Buckley – You’ll have to take the two lowest individual bids and compare them with the combination bid.
Future Agenda Items
Peg Perusse – Do you want to get the insurance agent in to talk to the BC?
Bill Buckley – We don’t need to talk to him. He needs to tell us what the Town should require on the insurance.
Peg Perusse – I’ll get the insurance agent and town attorney to review the recommendations of the Construction Manager.
Gary Waugh – When is it reasonable to expect a definitive project schedule?
Jack Healy – Probably not until the first week of August.
Bruce Walpole – We’ll finalize the schedule once we hear from SFU.
Motion to adjourn was made by Mac Bramley at 8:25 PM, seconded by Lynn Chapman.
Motion Carried. All votes were in the affirmative. There were no abstentions
Respectfully submitted,
Kelli L. Green, Recorder