BOG Meeting Minutes_10/19/2021

by | Oct 27, 2021

OLS BOG Meeting

Tuesday   10/19/2021

Via Zoom

Board of Governors and Association officers in attendance:  Matt Merritt (MM), Bryan Even  

(BE), Norm Yester (NY), Tom Annulli (TA), Joanne Gilland (JG), Jay Moynihan (JM),

MaryKate Reynolds (MKR), Al Roy (AR), Cliff Winkel (CW), Kathi Stickley (KS),

Member Guests: Approx. 25 via Zoom

________________________________________

Meeting Call to Order: 6:33  PM

Roll of Board and officers present

Approval Minutes 9/29/21: TA/CW

MM opened the meeting stating the purpose of the meeting was to be updated on the status of the bids.

AR shared preliminary bid results and read aloud a letter to be shared with the residents.

Reviewed at a Special Meeting of the BOG

Tuesday, October 19, 2021, 6:30 PM

(via Zoom)

 

 

Dear residents,

 

We have new and substantive information to share this evening, and I would like to simply “cut to the chase” to use a movie review expression, but the final chapters in this ten plus year saga are not yet written. Since the very first chapter written in 2012 with approval of the funding resolution, a long-drawn-out story has evolved, which leads us to this evening’s discussion.

 

As reported previously, bid results for the three components of the shared project were due recently and results for our internal project were due and received on Thursday, October 14.  These were the unofficial “read-aloud” results which F&O had to carefully examine, conduct a detailed bid analysis, and then determine and recommend the low responsible bidders/contractors.  This analysis and information from F&O were made available literally an hour ago to all CSA members, and we’re sharing that information here now.

 

The bid verification and financial analysis clearly determined that the project is unaffordable for OLS and we are unable to proceed at this time. The total estimated cost to our residents for our internal project and the shared infrastructure exceeds our approved bonding capacity of $9.7M.  The total estimateof costs came in at approximately $11.3M.  So, this chapter is now written, but there is more to follow.

 

The final chapters can only be written once we fully evaluate the overall situation and our options.  We need to honor our partnership with the three CSA members, learn where they stand at this juncture, and what their plans might be. Your WPCA and BOG will continue to exercise due diligence in determining the following:

  • Potential availability of additional grants, and means for integrating new funding
  • DEEP’s response to the funding dilemma
    • Potential but unlikely funding alternatives
    • Implications for the Unified Consent Order*
    • Potential alternative compliance measures*
  • Treasury Department’s posture regarding accumulated debt for engineering and design
  • Whether one or more CSA member desires to proceed to construction, and the implications of their decision regarding current agreements
  • Legal implications and possible ramifications if OLS must abort the project*
  • Private funding for debt repayment, road repair and storm drainage improvements
    *Ongoing BOG initiatives, as reported previously

 

Financially, Old Lyme Shores is unable to proceed at this time, but we need more information and discussion to determine final outcomes and the least detrimental strategy.  In the meantime, no additional money will be committed to support the project.

 

Based on the scope and timing of needed interactions with our partner CSA members, DEEP, Treasury, and F&O, any final determination on outcomes and strategies may not be possible until the end of December, 2021.

 

Your WPCA will provide regular updates as we work through remaining details.

 

Sincerely,

Al Roy – Chairman, OLSBA WPCA

 

AR- OLS will not be commit to spend any additional funds until more is figured out.

MM advised the 11.3M is an extrapolation and includes a 10% contingency.  The resolution is the parameters under which we will be working.

AR- committed the WPCA willl work hard to determine what options make sense and present them. Outcome may be a new resolution to identify our next step(s) along with accompanying costs with full transparency

MM-Rep. Courtney’s and Sen. Murphy’s office are looking into the collective project to determine if additional funding is possible.

KS-skeptical with the bid quotes and struggling with the veracity of estimate that came in.

MM-thankful to the WPCA for their work and diligence. Appealed to the board to allow the WPCA to continue their hard work at their time line-120 days is the timeline and the last day that the bid can be awarded is Feb.2, 2022.

MM- Employed the services of Hinkley and Allen; should get some feedback on research and reviewing of the agreements; written summary and opinion should be available for board perusal within next 7-10 days.

JM- asked AR to share the bid opening process with the board.

AR- described a contractual process that occurred at Fuss &O’Neill property; interested contractors attended; it involved unsealing the sealed envelopes, paging through to the bid summary portion, read aloud the line items and recorded by F&O.

 

JM-stated that increasing the contingency was important; 1) In the bid prices, some recognition should be given that the work for Amtrak is on a force account; concerned that the force account is open ended. 2) Wants to keep in mind that with three bidders, you will need coordination among the three.  Supply chain issues with one bidder may hold up processes of the other bidder; 3) Suggests the WPCA take a look at the proforma numbers presented at September 2020 meeting; numbers should be updated to see if still accurate.

 

BE-advised that board should start thinking about how to consolidate efforts with theWPCA; board may need to refocus on other things such as alternative compliance issues.

JM- would like a limited amount of money (3 k) for 3 presentations to the board and the WPCA to go over the 2011 facilities plan, look at non sewer communities, facilitate possibilities in OLS if we need to do something outside the Sewer plan.

MM wanted to wait until the report from Hinkley and Allen

JM asked for an update on the cost sharing agreement.

AR- in draft review and revision process- not yet brought to the attorneys to minimize new spending.

Comments from community members outside the Board:

 

Greg Simone-Brightwater Rd- commends MM and the board for a well-run meeting and AR for a complete synopsis; thanks the WPCA for the time spent on this project; feels that getting an additional 1M or 2M gap from other sources  may not be possible in this 120 day time period ; feels dialogue for alternative options is the path to follow; happy counsel is involved to determine our responsible costs

 

DeDe DeRosa- tried to keep the total costs under 7M even though the bonded amount was 9.8M; we should not be spending any more money than we absolutely have to.  Has serious concerns about hiring consultants for educational purposes until we know what is ahead in these next 120 days.  In favor of hitting the pause button on spending money.

 

CW-agreed with DeDe ‘s comments; thinks things will sort themselves out in 40-60 days

 

Greg Symone- Do we know about the other communities and where their bids came in?

AR- results are mixed; OCB had a funding cap that was set higher.

 

GS- what if other communities vote to go forward- how does that work?

 

AR- they would have to have their members vote to increase their bonding cap- would have to happen with 120 days; this is what our attorneys are looking at now.

 

LuAnne Grennan -Sea Spray Rd-What did the town receive from the American Rescue Plan?  Other towns have received funds.

MM- OL received 2.2 M- There is a focus group on what groups within the town will get it.  Feels it is unlikely that project will receive any funds.

 

 

Motion was made to adjourn the meeting at 7:48 PM  MKR/AR