BOARD OF FINANCE
February 15, 2007
First Selectman's Office
Essex Town Hall

Present: James Francis, Keith Bolles, Campbell Hudson, Joel Marzi, Fred Vollono.

James Francis called the meeting to order at 7:05 pm.

Others present: Deputy Treasurer Kelly Sterner, First Selectman Philip Miller.

Approval of Agenda

Motion was made by Joel Marzi to approve the agenda. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Approval of Minutes

Motion was made by Campbell Hudson to approve the January 18, 2007minutes. Joel Marzi seconded the motion and it was unanimously approved. Motion carried.

Treasurer's Report:

A. January Year-to-Date Update and
B. School Financial Reports:

Kelly Sterner reported that we are forecasting approximately $197,000 ahead of budget on the revenue sign. The increase from $185,000 in last month's report is primarily due to the receipt of $7,700 in additional homeowner tax relief and $3,000 in miscellaneous state and federal. It should be noted that the $3,000 is for a health grant with offsetting expenses. Ms. Sterner reported that Town Aid Road Fund, Tax Relief and the Pequot Mohegan grant came in above budget with State surplus distributions. Property tax collection is at approximately 91% this year compared to 88.7% for the same timeframe last year.

On the expense side we are over approximately $8,000 for insurance as a result of a workers' compensation audit and claims, electricity is over approximately $6,000 and there is the $3,000 expense offset by the health grant. The water rate increase effective January 1, 2007 will result in being approximately $1,000 over budget. Ms. Sterner reported that we received a letter today from East River Energy indicating that we will be required to purchase the fuel oil we committed to for the fiscal year. We are not using as much as a result of the warmer weather this winter. Ms. Sterner reported that if we cannot take possession of the remaining oil we will be required to pay storage fees at approximately 10 cents per gallon per month. Ms. Sterner reported that for Legal Expenses we need to keep an eye on the Zoning Commission, as of December 20, 2006 we have spent almost $21,000 of the $25,000 budgeted. Ms. Sterner indicated that she spoke with Marian Staye and was informed that there is ongoing work on Zoning regulations and Peter Sipples attends all of the meetings. Ms. Sterner also spoke with Zoning Commission Chairman Al Wolfgram who indicated that the Commission will hold up on regulation reviews for the remainder of the year in light of the legal costs to date. Other legal sub-accounts which are anticipated to show overages are Tax Appeals and Miscellaneous. Ms. Sterner indicated that their might be savings in other areas: SEC Filings and Labor have savings opportunities. Mr. Marzi stated there are legal expenses involved with the Spencer's Corner property purchase for the Elementary School project.

Motion was made by Keith Bolles to accept the Treasurer's Report. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Selectmen's Topics:

A. Viney Hill Brook Park Remediation:

Philip Miller reported that, as requested by the Board of Finance, Bob Doane is in the process of reviewing the necessary remediation and project review has also been brought before Inland Wetlands. Mr. Miller stated that he hoped to bring detailed information to the Board of Finance next month. Joel Marzi inquired if the request would go to a Town Meeting. Mr. Miller indicated that it would and Attorney Royston's legal opinion was discussed. James Francis stated that he would like communication to the Park and Recreation Commission asking them to thoroughly review to ensure there are no additional issues.

B. Bio-Diesel Fuel Highway Department Vehicles:

Philip Miller reported that he and David Caroline had met with representatives from the State Department of Transportation. They are using B-20 in their vehicles and have not experienced any loss in power, the drivers and mechanics are satisfied, they do however use more filters on the dispensers. The State has a contract with East River Energy for B-20 that we are eligible. The cost is $2.04 per gallon versus the $2.36 per gallon for lower sulfur we are paying now. There is a slight reduction in mileage that should be offset by the reduced cost. Mr. Miller stated that he is hopeful that we can take a lead as a municipality. Mr. Miller stated he is resolved to make the conversion for public works vehicles by April 1, 2007.

C. Small Cities Grant:

Philip Miller reported that we are meeting with Wagner Associates next week to establish the financial protocols.

D. STEAP Phase 2:

Philip Miller reported that we were required to re-bid the project and the low bidder for the re-bid is Xenelis Construction. We are set to begin work around March 1, 2007.

E. School Bond Meeting:

Philip Miller reported that there will be a meeting on Wednesday, February 21 regarding Region 4 bonding. Mr. Miller indicated that there is a Board of Selectmen meeting at that time and he cannot attend and he is hopeful that a Board of Finance member might be able to attend.

Old Business:

A. Elementary School Project Update:

Joel Marzi reported that there was a meeting this morning with the School Facilities Unit. We cannot go to bid until we receive the FEMA map adjustment. It is hopeful that the adjustment will be received in the next few days.

New Business: None

Communications and Correspondence:

A. Connecticut Municipal Consortium for Fiscal Responsibility:

It was the consensus of the Board not to take any action at this time on the Consortium.

James Francis reported that Region 4 requested a Board of Finance representative for the Business Manager hiring process. Keith Crehan has volunteered to serve in this capacity.

Motion was made by Campbell Hudson to appoint Keith Crehan as the Essex Board of Finance representative for the Region 4 Business Manager selection process. Keith Bolles seconded the motion and it was unanimously approved. Motion carried.

Motion was made by Keith Bolles to adjourn at 8:30 pm. Fred Vollono seconded the motion and it was unanimously approved. Motion carried.

Respectfully submitted,

Cindy Varricchio
Board Clerk