Prudential Committee – April 27 2015 – Meeting Minutes

Prudential Committee

Cotuit Fire District

27 April 2015

5 PM


Present:           Laurie Hadley, Stan Goldstein, Fran Parks, Charlie Eager Clerk, Mike Daley Treasurer and Rick Kiley Chairman of Water Commissioners

Fran:                I am going to call the Monday, April 27, 2015 meeting Cotuit Fire District Prudential Committee to order. Is there any public comment? Is there any public comment and who is recording? Amy Kates is recording.

Amy Kates       Two things. Fran you sent me a list of districts and contact people for street lights and I did a little research and I think that it probably is in order for the Prudential Committee to do an insurance audit and figure out what we insure and what we do not insure and Mike suggested it last time and I think the committee agreed that it would make some sense and what I found out based on my conversation with some of the other districts is that they do have insurance that covers their street lights. It is under an aggregate policy. They do not have policies that ensure the street lights only. COM, M a year ago, bought their street lights and so they had not in the pass owned them, but when the Cape Light Compact agreed to replace the street lights, COMM decided that it probably made sense for them to own them. That is my first comment.

My second comment is that after the last meeting when it was indicated that members of the public would probably not be getting then Appropriations Report in an email form, like the elected officials do, the public was assured that it would be on the website. It is not on the website, so I am asking either that it be available for interested members of the community on the website or that I be added to the email dissemination, so I would really appreciate that. Thank you very much.

Fran:                To the best of my knowledge, that is on the website. Patricia told me it was on the website. I will check again. No, no more comments. I am just responding to your comments. No conversation.

Ken:                 I have talked to Attorney Bodreau and he confirmed that amounts in the warrant will not be allowed to be raised at the annual meeting.

Laurie:             They never are.

Ken                  I do not know if everybody did, but years ago …

Laurie:             I think some members of the public did not get the word.

Fran                 I will conclude my comment about the street lights. We are covered under our policy on the street lights.

Moving on. Mr. Dailey?

Mike:               I will explain the last annual meeting warrant. This document is the legal sized document. First page will summarize the expenditure side of the house, the expenditure budget, if you will. This is just a sequential listing of the articles that have money. There are probably other articles that are not on this list. Second page is the revenue side of the fiscal 16 budget and we have been through this, so it is not new for you. What I will do is I will just move into each supporting unit and we can have you vote the final numbers for the warrant.

The first one would be Article 3 on page 3. This is the article for the Annual Statutory Reserve Fund. It is raise and appropriate and it is recommended at 35. We had some discussion previously as to whether you wanted to drop it or keep it at the 50 that has been historical, so the motion should include the amount and that is all we really need to know. How much do you want to put in the Reserve Fund?

Stan:                Does the amount we put in reserve, is that dictated by any particular general law or by-law?

Mike:               No. It is just what do you think you are going to need to make sure you do not have to call a special district meeting to get through the year. At this point, the budget is about 3.8 million dollars, so 35 is a little bit below.

Stan:                We are planning on drawing down though for potentially a fire truck and …

Mike:               No, this is a completely different world. We are talking about once a year, we appropriate an amount of money for you to transfer during the year to make emergency transfers. It has been $50,000 as far back as I know. I do not think you need that much, 1% of your budge would be $350,000. I do not think you need that much. You can see that the prior uses have been … 13 was a very confusing year for the district. Last year, you used under $30,000, this year you had a small amount of transfers. It was a tough winter. We are going to make a few more transfers, but I do not believe you are going to use 50. The question is, how much do you want to stick to the side in the budget to cover shortfalls and other budget areas that your board controls? I am recommending 35.

Laurie              I think there are enough things going up that we can certainly go down on one Article here.

Stan:                I follow your recommendation on that.

Fran:                So we need to vote that. Do I have a motion?

Laurie:             I move we vote to raise an appropriate $35,000 for the Reserve Fund.

Fran:                Is there a second?

Stan:                I will second it.

Fran:                All in favor?  So moved

Mike:               Terrific, good start. I noticed on your agenda you have the auditor contract.

Fran:                Yes.

Mike:               Can we drop down to that and take that out of order?

Fran:                Sure.

Mike:               Please. Page 4 represents the finance department and in there, is the funding for the audit … It would be Auditing 15 during 16. The auditors have given you two proposals. One for a single year contract and one for a three year contract. This budget if you go down about four lines into the expense side, is budgeted at $12,750 which is what the single year proposal is from the audit firm. If you choose to use a three year contract, we can drop that down to $12,250.

Fran:                I believe at our last meeting we voted to do the three year.

Mike:               You did?

Fran:                Yes.

Mike:               Okay. I will make that change right now.

Fran:                I only had this on the agenda, because we still need to sign that agreement.

Mike:               I think that is just a letter. I can email them and say that you accepted their proposal.

Fran:                Okay.

Mike:               I do not really have a signed contract. You do an engagement letter each year, but I will take care of that. We are going to tell the auditors you want to do the three year?

Fran:                Correct.

Mike:               We are going to budget $12,250.

Stan:                Just a question for you Mike, since I am a newbie here, do you feel confident in what it is that they have done a good job?

Mike:               They pre-existed my arrival. I am sure they will surpass my exit and we see them all over the Commonwealth in different communities, particularly on the eastern side of the state. I have no complaints.

Stan:                Thank you.

Mike:               The auditor contract, we will tick that off and we have made that change to 250. The rest of this budget, I think we have pretty much been through. Let’s just make sure. There is no change in the salary and wages for elected officials or appointed officials, that first line. It is just elected. The line for the employee and the Treasury is adequate. It will support a 3% increase, up to a 3, maybe a hair over a 3%, depending on what you do there. Your clerk is level funded at 250. The salary and wages in this department seem to be in order.

On the expense side, I think we have pretty much been through this. The only thing we kept open was there is a blank set of lines about mid-way through the expenses for insurance migration, depending on what you choose to do. We can hold this open. We have the water commission here. I do not see a fire representative, but the whole purpose of this is to consider consolidation. Bring all the insurance into one central place and manage it. If you want to skip over this one for the minute, we can conclude this, get the ones that are clean done and then come back about what is going to go on. We will hold this Article 4 for a minute.

Article 5, there is nobody from Fire here, so we will hold that for a minute too.

Laurie:             Mr. Mycock’s wife has had a health situation and he has not been able to come up from Florida and …

Mike:               I think we are okay there, but we will skip it for the moment.

Laurie:             I did check with the Chief. He said none of their figures have changed.

Mike:               Okay. The water department, the budget in the packet is on page 8 and 9 for water. The budget for the expense side and the capital side ties out to what came to you from the commission, but the commission did not put any dollar amounts in there, requests originally for salaries. While we have been working, we have had a place holder and I just took existing pay grades and rates and added 2.5% to them, so that we could see some kind of movement on that line item. Get some sense of overall impact on the district globally. Has the commission voted salary and wages? Do you have any numbers for that?

Rick:                Yes.

Mike:               Do you want to give them to us and we will drop them in?  Perfect.

I am going to drop 87,012 into the first line and we are going to go with 43,775 in the third line and I am going to add the three … We now have a salary line of 291,455. I have 55, they have 56. I think there is rounding going on.

Rick:                Chairman, could I comment on the figures that we provided.

Fran:                Certainly.

Rick:                In the assumptions that were in the financial reports as Mr. Dailey said, he assumed 2.5 increase for each of the positions. What the commission voted to do was increase Superintendents, the office manager and the senior operator’s salary by 3% for 16. The other two positions, Operator A and Operator B, those two positions are recent hires and so because of that, we are not increasing either of those positions. We are not increasing the salary. They do have the opportunity to earn incentive pay by completing their licensing, at which point, there is a one dollar per hour incentive in there. The potential for them to in effect get a raise is really tied into their performance, but there is no automatic raise for either of those positions in this budget.

Mike:               Your numbers are up by a dollar in this sum. Do you want to pick one to change to get … because your bottom does not equal what you are showing for each individual salary?

Rick:                Interesting.

Mike:               I am just going to change the top one to 13, so I can tidy your numbers…

Mike:               It does not really matter. Now 291,456 is what are in the printout that we will hand out.

Rick:                Okay

Mike:               So it ties to this piece of paper. The bottom line is $659,956. So we are good to go there. In addition to that, on the second page, there are two water articles. Article 8 is the operating budget, Article 9 is a truck and Article 10 is a demo two tanks and build a new tank. We have three Articles here. The budget article now, if somebody would move in, needs to be $659,956 and because we have a motion, we have to convert to salary and wages, other expenses, etc. I am going to give you … the labor and salaries is going to be $291,456 for labor and salaries in this budget. That is on page 9. It used to say $291,638 and when we change it, that is going to say $291,456. That is important for the clerk for the motion.

The remainder is going to be the same. Other expenses is going to be $342,500, as they originally requested and then the breakdown of that is $75,250 for maintenance, 250 and 250 for operations and $52,000 for their miscellaneous group, so called and 26 for their service connections. The new total $659,956.

Fran:                May I ask a question?

Mike:               To me? Yes, you can ask me a question.

Fran:                If we take the insurance and move it over to Prudential that is going to change their …

Mike:               That is correct. At least we have our numbers tied back to what the commission has at this point. So now you can entertain a conversation about insurance. It is going to move from one budget. It is going to come down and it is going to go up.

Fran:                The Water Department is the only department that has a budget for Workman’s Comp. Your budget is covering all the Workman’s Compensation for all the employees in your department and all the elected officials plus the Administrative Assistant for the Fire Department. If we move it to the Prudential Committee to clean things up, would like to take all of the insurance and put it under the Prudential Committee under one umbrella and remove it from your budget and from the fire’s budget and then go out to bid and see what we can do to update it and possibly maybe spend a little less money. What do you think of that proposition?

Rick:                I do not think the Water Commission has any issue with that. It certainly makes sense. It was always my understanding that for the most part tied together with VFIS providing the coverage for the district and so we always to get our quotes and everything, we just supply all the data. Workman’s Comp is a percentage of salaries, so we just submit the salary and the liability and the vehicle insurance, I had always understood was sort of bundled in with the Fire Department coverage for at lest the equipment. I do not know that for a fact. I just know it all came through VFIS.

Stan:                Do we want to take these …

Fran:                We will leave the budgets as they are for now, but if they have … say $100,000 for insurance and we do get a package deal for everything and …

Mike:               It is going to be in one place or another before you go to district meeting not after district meeting.

Fran:                Okay.

Male:               We are going to strip it out of this budget and put it over in the other.

Fran:                Okay. We are just going to do that? Great.

Mike:               What we are going to do is, the three lines they have that say Internal Estimate Agent Contacted, 56, 53 and 87 on page 8. They are in bold. It says Internal Estimate Agent Contacted, basically there notes that , we are just going to slide it over to the other, which is going to reduce their numbers. So that changes the number again. Those three lines go to zero. The new total of Other Expenditures is $298,500, where it was $368,500. It is now $298,500 and the bottom line is $589,956. That will all be raise and appropriate. That is going to change for the Clerk purposes, the Service Connection stays the same, salary and wages in the motion stays the same. It is going to be the [inaudible 00:22:33] is going to go down to $145,250.

Stan:                Where are you, Mike?

Mike:               I am on page 9. You will get a new copy. I am doing it as we speak. I will take care of the Clerk, as well, so that we will be able to exchange this file tonight. What we have done is we fixed the salary and wages in the Water Department’s request, we amended the expenses to move the insurance into a different location in the budget. Other than that, it is exactly as presented.

Two articles are considered 9 and 10 on your front sheet. On the front sheet, that $660,139 is going to be $589,956 and that is going to be raise and appropriate. The $30,000 for the truck is recommended out of free cash and the capital project for the tanks is recommended through debt. Just to get you a sense of two things, the debt as it gets impacted going forward by unissued debt, you can take a look at page 13. We will cover this budget eventually. The 16 proposed budgets does not include anything for this tank vote. It only includes that pretty much exists. We have three water notes and high street real estate that we are funding through, temporaries. All the notes we just sold in April are due next April and this budget deals with those.

What I did was I developed an estimate for 17, 18, 19 and 20 and dropped it into that worksheet, assuming that a bond sale will take place during 17. That it will use temporaries into 17 and next April, a bond can be sold or even the following, the bond can be sold. It gives you the impact once 18 is in place the 17 sale would trigger an 18 fixed and funded set of debt service that would pick up the water mains that are being constructed and currently on temporary. The water restriction which has not even transacted yet, but assumes to be transacted prior.

The high street real estate, this new tank, it also includes the current interest and then the long term interest and the water security right now is just a $20,000 note that we will not bond that piece if that is all that they do. The Administrator is not sure what he is going to do. What it shows you is that your debt service is currently being requested at $331,000. It hangs about that same number next year to try to keep the budget level and then it pops in 18 when everything loads in and it hangs up at the $440, $460 range over the first three years of the debt. There is a spike of about $100,000 to $150,000 in the que for all the debt that is just kind of hanging around out there waiting to hit the books. It shows you that once it is sold, there is anything else in the que. It will start to taper off at about 2 or 3% a year. It shows you down at the very bottom, they only debt you have is public works debt which is the water system debt and the new debt for the high speed profit.

That gives you a little insight. Also what I did to show you the cost of operations, the cost of capital and the cost of debt, how the two prior years, 13 and 14 shook out after the actuals were expended and what we used to estimate revenue for setting the tax rate, that we cap. What we saw was that in 13 and 14, the district was funding through taxation something in the range of 40-50% of the cost of the water operation, fully loaded. things like what we call indirect costs, health insurances are factored into that, so it is not fully loaded, but it gives you a sense of where you are at. The budget for the year that we are in, it was a hair over 50, closer to 52%. It is presenting itself back in that low 40% range next year.

Water rates will diminish demand for tax dollars. You can see that the water revenues that have been budgeted for tax setting purposes, again 13 was a crazy year, so whatever it was, it was, but 435 in 14, 540 in 15 and another $5,000 is estimated. We can only defend that the department of revenue what we actually reported on the prior year, estimating local receipts. Pretty much what we have actually this year will drive what we can use for the tax rate next year. If you do any water rate adjustments, you have to do them in such a way that you can prove to the Department of Revenue before you set the tax rate that the rates have been changed and the revenue is going to come in. If you vote rate change in one year, you do not have it as an actual revenue that year, because you are setting rates for the next year, but with a vote of the rate change, the department will say, Okay, if you took in 500 last year and you raised your rates 10%, you can raise your estimate $50,000 or 10%. This is mostly for information purposes, but it is starting to give you some insight into the operation and how it gets funded.

I think we have water done. You can vote them if you want now, so we can get those three checked off. The first one, Article 8, I will give you the motion, so it is going to be Article 8 is going to be $589,956 gross. It is going to be raise and appropriate. It is going to be $26,000 for service connections, $291,456 for set labor and salaries, $75,250 for maintenance, $145,250 for operations, $52,000 for miscellaneous for a total of $589,956 and I will get that to the clerk so he can prepare the warrant for posting. That would be Article 8.

Fran:                So Moved Do I hear a second?

Laurie:             Second.

Fran:                All those in favor? Unanimous

Mike:               Article 9 is $30,000 for the truck, recommend free cash.

Fran:                So moved. All those in favor. Unanimous

Mike                Then Article 10 would be the $2.1 million for the tanks and that would be from debt.

Fran:                So moved Second?

Fran:                All those in favor? Unanimous

Male:               That takes us to Article 11. That is on page 10. This is your Freedom Hall. We have $3,500 in the budget for the employee. I think we figured out the other day that would suffice with some adjustments through a little bit of increase in salary during the summer months.

Laurie:             I think he started in July.

Fran:                Correct.

Mike:               You bumped him this year, so next year there should be ample amounts in there. I think we are going to have to do a little reserve fund this year to square away the changes you made in the schedule. The $3,500 should hold us good. Electricity, we have added some electricity, because we picked up air conditioning. What have we left alone? We got the estimate for the heat from the vendor at $5,500. I am sorry, that is something we estimated. The $4,500 is a little it down from the current year, because we added some things in the current year, but we have added shades for next year. We are still touching up this building.

Grounds we bumped up to be more realistic with what we saw this winter. HVAC, we got that maintenance contract figure from the vendor

Fran:                Cost estimate.

Mike:               The telephone is level funded. The alarm is up a little bit. We paid 330 and we have not renewed this year, so I am thinking if it does not go up this year, we are in a little trouble, but we are budgeting a little bit more for next year and hoping we get the 330 this year.

Building supplies, we spent $14in 14, we have $150. We are bumping that up a little too to make sure that we can keep this place supplied. The custodial supplies are leveled at 3. We got another insurance line here which we will move this $10,000 over to the other administrative costs, so we will take that out of here that is going to drop that line and then 100 from miscellaneous. I think we have a budget.  That is going to drop your down to $18,975 in total and for the clerk’s purposes, it is still going to be $3,500 for the labor and salaries. It is still going to be $675 for the maintenance. It is going to be $8,625 for the operations and $100 for miscellaneous.

Fran:                May I make a … I was looking at the repairs and maintenance and I think we need to bump that up a little bit. We still need to replace the doors down in the basement, put panic bars on the two doors up here.

Mike:               I thought you were doing that this year with the reserve fund transfer? If you want to change a number, just tell me where you want to put it.

Fran:                We have not. I think that is going to be around another $5,000.

Mike:               So you want to go $10,500?

Fran:                Yes.

Mike:               Any other changes before we vote for this  for the clerk?

Fran:                No.

Mike:               That is going to bring it up. At this point, we are still going to have $3,500 for the labor and salaries, $67,500 for maintenance and $625 … $35, 11,750 for maintenance, $625 still good in operations and miscellaneous for a total of $20,475. We knocked that one down by about $5,000 with the move with the adjustment, but $10,000 went over the other way, so we are actually up $5,000 on this one. For this one our grand total is now going to be $23,975. It is going to be $3,500 labor and salaries, $11,750 maintenance, $8,625 operations, $100 in miscellaneous for a total budget of $23,975.

Laurie:             So moved.

Fran:                Is there a second?

Stan:                Second.

Fran:                All those in favor. Unanimous

Mike:               Article 12 is painting Freedom hall and repairs article that is requested at $30,000. I am recommending free cash for that Article. If you are good with that, we will knock that one off too.

Laurie:             I move we transfer from free cash $30,000 for painting and repairs of Freedom Hall.

Stan:                So moved.

Fran:                All in favor? Unanimous

Mike:               That takes care of number 11, number 12. The next one is going to be street lights. Street lights are on page 11. In this case, we have looked at our monthly cost since the change. We have been running about $815 a month. We are budgeting $900 to accommodate any adjustments by the electric rates. We have a maintenance contract that covers out existing lights and $95 a month and we budgeted to put two new lights or to be able to provide two new lights somewhere in the district, if so requested. That is 26 and we certainly do not need to purchase insurance specific to street lights, so you are currently showing a raise and appropriate budget of $13,400 for this Article.

Fran:                So moved  Second?

Stan:                Second.

Fran:                All those in favor? Uniramous

Laurie:             I like to see that minus, 46+%.

Mike:               Next one is on page 12. That is library and you had debated this at your last meeting. You sort of got it at $19 if you just want to ratify that. It is raise and appropriate $19,000 for library services.

Stan:                So moved.

Fran:                Second. All in favor unanimous.

Mike:               That takes care of that one. Now we have the debt and interest budget. We kind of looked at that on page 13. 13 is all raise and appropriate. We have the existing tank bond which cost us $105,000 in principle and in fiscal 16 will cost us $63,500 in interest. We have a series of note pay downs scheduled for next year to the tune of $160,200. The notes have been sold. We know the interest rate and it is going to cost us $3,050 and we budget $100, in case somebody makes us give them interest on their abatement payment for a total of $331,850.

Laurie:             So moved.

Fran:                Is there a second?

Stan:                Second on that.

Fran:                All those in favor. Unanimous

Mike:               Thank you. That one is up 23-24%. Not much you can do there. Previously, I will go to 14. We distributed to you a detail of employee benefit calculations worksheet. We will have it for the district meeting. This budget rolls up to that figure based on the current head counts and coverages, etc, etc. This also includes the ability to add one more life insurance, one more highest in health insurance and one more dental insurance if somebody retires, we have them covered and then we would add a new person. We built in one of each. The retirement assessment is set by the Retirement Board actually went down. They have been making some changes to more of an actually driven calculation with your personnel changes and the salaries where you reported in October, you actually enjoyed a modest adjustment downward.

Then we have been contributing for several years now to the  OAP Trust Fund. We are recommending $160,000 for that this year. Now this Article is a total appropriation requested of $710,938. We used the OPD Trust Fund to pay the cost of all the retirees and if you review that detail schedule, you will see that this number foots to the OPD 2 years out liability for next year. While we are putting $160,000 in, we are also going to be taking out $77,000. In fact that detailed schedule of funds, the very top one, if you look at it, I gave you was we have this money in a CD through March’s income, we had about $178,000 and change in that CD. We are picking up about $90 a month. We are going to transfer out under this motion $77,675 and we are going to transfer in through this motion $160,000, so that fund should be looking at about $260,000-$261,000 in that range come the first of July after all the transfers have been made and it will begin earning income again across 12 months.

This fund is doing very well. As you see, we try to put two in, while we take one out. We are putting $160,000 in and taking $78,000 out, so round figures, it is $80,000 and that is what we have been trying to do going along. We may not need to aggressively fund that, but we are doing fine with it and that it what we are proposing here.

If you go back to page 2, I show you in that sort of revenue how we are going to meet the obligation. For discussion, we will keep with the $6.6 million that was on the table when we started discussing this budget. We have to add the $22,000 in to provide for refunds of tax bills issued in error, so our overlay would just level funding our overlay. The district does not vote that. We deal with that when we set the tax rate on the recap sheet. We need to basically show the Department of Revenue how we are going to raise $6.623 million to pay these bills that your warrant is going to produce.

The levy for minimal and we do not have prop 2.5 restriction, so levies is not limited in any way for this district. Local receipts are being budgeted at 175, which is about where we set the tax rate this year and we are not seeing any extensive growth in revenue anywhere. We are just going to levy fund that, put up $5,000 for new residents that are appearing, particularly over across into the meadows. We are picking up a little volume. Our revenues are growing.

I show you the next two lines. One is called Pre-cash nonrecurring and one is Pre-cash recurring. Why I show these as separate is non-recurring use of free cash is perfectly legitimate. If you have free cash then you can use it for something that you do not normally have to have. Recurring expenses should never come from non-recurring sources of funds. At this point, you can see the recurring use, the district had an extremely bad practice of spending wildly and then using this free cash to lower the tax levy, but at the same time you were lowering it, you were raising it again artificially, so you would have it again next year to lower it again. Somebody came up with a bright idea that somehow we can make people feel good by spending and moving money around like chairs on the deck of the Titanic. The goal is to get this non-recurring use as the only use of free cash and to get this recurring use out of your life cycle.

Last year we used $140,000 of free cash to fund the OPD Trust Fund transfer which is really not a hard core recurring use, because if you wanted to take a vacation from funding it, you could do the same thing you have been doing since you incorporated the district, not pay for it and let somebody else pay for it down the line. We are not even fully funding the contribution. We are putting $160,000 in, as you see on page 14 and we are proposing using the last of $95,000 of free cash to keep that level up and meet the obligation that I think you should be meeting, but it is a remarkable change.

If you think about it, you will probably close $100,000 of free cash at the end of any year. If your budgets get tighter and better managed and they are proper to begin with, then you are not going to be closing down $600,000 – $700,000 of surplus that you raised in taxes last year, so you can use it to knock down the taxes next year. The goal would be to get out of using free cash for recurring purposes and I would say we are probably a year away, if that. Thus, I am still proposing we use $95,000 of free cash in this Article.

Stan:                Can I ask you a question? It is my ignorance here. When I have free cash, I put $100 in my wallet and I spend 99

Mike:               Let me start with explaining what free cash is. You have a list in front of you. I am covering free cash as the fourth item on our list.

Stan:                Okay.

Mike:               Every year at June 30, there is no free cash. The surplus of the district is from an accounting perspective called undesignated fund balance, so if you go to the Audited set of financial statements or you go to the statements that we put in the little book, that is a little bit more dumbed down for the normal non-accounting oriented person, the undesignated fund balance is the gross equity of the district. The Department of Revenue says, We cannot trust you to manage your equity position, so we are going to give you a number that is a subset of that whole number that we feel comfortable letting you play with and they do a calculation off the undesignated fund balance and they consider the receivables and they do a determination of what they are going to use as their certified free cash number.

They do not let you spend all of your surplus every year. They certified that number at June 30 of last year at $416,120 which is right on the top of your list. Certified free cash was signed off by the Bureau in January 2015. It is still sitting there. The district has not used it. I will double check that. They may have used a little bit. We are proposing $220,000 this meeting. The $95,000 for the trust fund contribution and the $122,000 that shows on page 2 for trucks, basically, trucks and buildings, I think it says and $25,000 going into the stabilization fund. All nonrecurring expenses. If you need a truck, you buy it. If you do not have the money, you do not buy it. So free cash is being devoted mainly to put money in the stabilization fund which is for capital purposes and for buying capital equipment which is what we generally recommend you use your surplus for.

We also did some work that is not normal every year. It may be every couple of years. I just mentioned earlier that we are going to put $22,000 aside for tax refunds. Every year we put that figure away and you can look on the schedule and see what it was annually. If we do not use it, we need to have the assessors take a vote and they release it and then it becomes an available fund for district meeting to use. If district meeting does not use it before June 30, it vaporizes and flows down into undesignated fund balance. Above the free cash number you see on your work paper, there is also, the assessors voted to free up $79,642 overlay surpluses. It went back to the 2008 or even beyond and I cleaned it all up with them and so they released $193,000. That is not going to be used before June 30, so that is going to close into free cash at the end of this year before we close down surplus revenue or unused funds.

What happens is, according to this schedule, if everything is clean, we are going to start with $416,000, we are going to take $222,000 out, we are going to put $193,000 back in and we are going to be sitting on almost exactly the same amount of free cash at the end of the year that we entered the year with, except that we still are going to close down all the revenue that exceeded our estimated revenues which we will have more to turn in and all of the money we did not spend in the budgets which we will also turn in, so we are going to close in favorably from the revenue budget. We are close down favorably the expenditure budget and we are going to be closing that into a fund balance of about $400,000. We will have more free cash next year than we have this year in reality. We are not pillaging the free cash and as it sits, we are going to close the year with about as much as we came into. We are not depleting any resources. We are growing all our resources, except we are going to talk when we get to fire about using stabilization fund for a fire truck not reserve fund.

Stan:                Okay, thank you.

Mike:               Stabilization fund is not in on designated fund balance. It is a separate trust fund that has been pushed off to general fund into a separate column and in that account, we have $590,000 and change. It has been dripping in at the tune of $25,000 a year for some 20 odd years with no use. The purpose of building a stabilization fund is to use it. The $25,000 a year that has been going in is now setting all nest egged up to buy the new firetruck, all right? So that is what we are going to do when we get to that Article and that fund will still have almost $70,000 after you put the $25,000 in. We are not depleting that either. Our funds are in very good shape. We are only using what is prudent and we are actually leaving behind almost more than when we started with and we are not breaking any practices. All of the improvements that have been happening for the past two years continue to improve in 2016 and the district becomes more financially stable into 2016 and out of 2016 then when it was when it went into 2016. No matter what anybody else says.

Stan:                Does that help us in ratings for bonds?

Mike:               Only when you sell a bond, do you get a rating and you are looking at 17, so that is what this all is doing. Is to set up the best look we can give the rating agencies when they come to rate us.

In this case, we are going to raise $710,938 for Article 16 and we are going to fund it, $95,000 from free cash, $77,6075 from the OPD Trust and we are going to raise and appropriate $538,263 and that would be the motion and the amount you are going to put in your warrant is $710,938.

Fran:                So moved. Is there a second?

Stan:                Second.

Fran:                All those in favor? Unanimous

Mike:               Now this next Article of page 15 is Article 17 and as you can see, 2013 you put in $25,000 in stabilization, 2014 you put $25,000, 2015 you put $25,000. We are proposing another $25,000 from free cash into stabilization, so we are moving it from one surplus account into a more challenging surplus account, because it takes a 2/3 vote to spend from stabilization. It takes 2/3 to put into stabilization. It only takes a majority to take it out of free cash. That is the difference. The stabilization fund is more of a permanent fund for capital accumulation to buy big ticket items and it is 2/3 in, 2/3 out.

Laurie:             It is also the one fund that can earn interest, isn’t it?

Mike:               It is allowed to retain its own earnings, correct, which it is what it has been doing. If we could get a motion. If you want to change that number, you can change that number, but $25,000 is what you have been doing and as I showed you, you are going to draw $550,000 out, put $25,000 in and be approaching $70,000 towards the end of this fiscal year.

Fran:                So is there any discussion in keeping it at $25,000?

Laurie:             I think we ought to keep it at $25,000 until we get rid of some of this interest.

Fran:                Okay.

Laurie:             In four or five years.

Stan:                I am going with that.

Fran:                So we will leave it at $25,000?  So moved All those in favor? Unanimous

Male:               Let’s go back to Article 5. Article 5 is actually Fire Department and it runs from page 6 to page 7. The operating budget is as presented by the Fire Commissioners. Given what you have done with water, Freedom Hall, street lights, Fire has, if you turn to page 7, $12,000 for property and liability, $30,000 for vehicles, $39,800 for ANS and umbrella. ANS is Accident and Sickness and umbrella which is additional liability coverage. We will do the same thing. We will take the $12,000, the $30,000 and the $39,800 out of this budget and move them over to the other budget?

Fran:                Yes, please.

Fran:                All in favor? Second unanimous

Mike:               In effect, we just taken that insurance and moved it across to the other line. I think other than that, the budget is exactly as brought forward by the Commission.

Laurie:             That is what I am told.

Mike:               The bottom move for the Article 5 budget is now going to be $1,773,954 and the components to the motion, labor and salaries is going to be $144,3004 which is in the spreadsheet, maintenance is still going to $8,500 that is in the spreadsheet, operations is going to drop to $249,450.

Stan:                You said $8,500, it is $80,500.

Mike:               $80,500 and then the $1,000 stays the same.

Laurie:             So moved.

Stan:                Second.

Fran:                All those in favor? Unanimous

Mike:               Article 6 is a chief vehicle for $37,000, recommending free cash.

Laurie:             I make a motion that we purchase a new vehicle for the chief out of free cash. Is there a second?

Stan:                Second.

Fran:                All those in favor? Unanimous

Mike:               Article 7 is a fire engine replacement for $550,000 and we are recommending stabilization fund for that.

Fran:                I make a motion that we take $550,000 out of the stabilization fund for a new fire engine. Is there a second?

Stan:                Second.

Fran:                All those in favor. Unanimous

Mike                We have done reserve fund number 3. We have done Fire number 5, 6, 7. We have Water 8, 9 and 10. We have done 11 Buildings, 12 Freedom Hall, 13 Street Lights, Library, Debt and Interest, Benefits, Stabilization and that just brings us back around to 4 and what we have done, we have put in the insurance in there, so I am going to go through and just verify the legal services, I dropped it to $75,000. We spent $54,000 in 2014. I do not think we spent anything year-to-date to speak of. We will have the district meeting, but is $75,000 okay?

Fran:                I think that should be fine. I sent Mark a note today asking if we would do anything to settle for the current year.

Mike:               So $75,000 is good? Okay. The accounting services, we just dropped that to $12,250, because you are going to do the three year deal and then the Treasury Services, I stuck a place holder that was up in there, but I am not certain that is going to meet your needs. If you are comfortable with that amount, fine. If you want to change that, we can change that one.

I think that was the only other one that I thought that you needed … the stenographer we talked about was $1,200, that is okay, $100 a month and the disclosure stuff, we are okay with. Website, we are okay with. Banking, we are okay with. Tax rate OK, we are okay with. Postage level should be okay. We dropped the office supplies a little bit. We did not need a printer this year. Computer copier, that has our computer support in it. Copy machine maintenance, PC maintenance. Dues and memberships is level. Unemployment, we were running really high in 2013 and 2014. We had a couple of thousand tweak out at the back end of 2014 into 2015, but we have not had any activity. I put $5,000 in there, just to have a place holder, in case something does go bump in the night. A lot of times, people will leave an employer, take a new job and then the former employer gets hit for the Worker’s Comp, because they have not got a full year with the new employer. I think you should have something in there, but I do not think you are in the magnitude of what you were dealing with in 2013-2014 period. If you are okay with $5,000 that is why we have a reserve fund, if something like that happens.

Fran:                I think that is fine.

Mike:               Okay. The payroll taxes, I bumped that up. Employee Assistance has been the same for years, it does not change. Same with the assessment from the town. Annual report seems to be adequately funded based on last year. I am not sure if the year before was two years or one year to be honest with you. Then we have a ballot expense item. We have the elections covered . If you are okay with the $75 for the Attorney, you are okay with the new amount for the auditor, just kind of have to validate the Treasurer cost and you are going to go out to bids shortly, so you will have a hard number.

Laurie:             Do you think we should increase it at $40,000?

Mike:               It is probably not a bad idea. I think that it is all of that to be honest with you.

Laurie:             More?

Mike:               No, I think that should suffice. There is some push and pull in there, but I think that should … We covered the lawyer. We have covered the auditor. We covered the contracted Treasurer. We covered the consolidation insurance. Anything else that you see in that budget that …

Laurie:             We have to vote to increase that line.

Mike:               Yes, I am going to give you a bottom line unless you have anything else. What we have done here is we have changed this budget to read $349,750.

Laurie:             Did you say, 300?

Mike                Now I have $171,000 in insurance

Laurie:             I told you I am not good with figures.

Mike:               That is why I think when you get up into the $200,000 worth of premiums, somebody is going to give you a better deal. I think we have done. We have $35,000 for your salary and wages. We have $314,700 for operations and $50,000 for miscellaneous for a total budget of $314,750 of other and grand total of $349,750.

Laurie:             So moved. Is there a second?

Stan:                Second.

Fran:                All those in favor? Unanimous

Mike:               I think that covers … we have no Articles for approval this year.

Fran:                No.

Mike:               If we go back to page 1, we did the reserve fund, Article 3. We did the Finance and Administration, Article 4. We had no Capital Articles in that group this year. We did 5. We did 6. We did 7. We did 8. We did 9. We did 10. We did 11. We did 12. We did 13. We did 14. We did 15. We did 16 and we did 17, so I think we completed the warrant.

On page 2, where we had a 2.5 levy increase. It has now gone to 3.13. We still have the 175, the 545, the 122, the 500, the 627 and the 21. The total requested appropriations is $6,619,823. I will draw this all up and redistribute it for you.

Fran:                Okay.

Stan:                May I ask just one question? Over at, you went fast and I was not able to … I am not going to make any modifications, I just want to get an understanding. You had a $52,000 miscellaneous on page 9. I was just wondering, what does that cover?

Rick:                That account, $2,000 of it is for training and that is classes primarily for the operators that goes on through the year, mostly related to safety through OSHA type training and then the $50,000 amount was something that was incorporated into our budget probably 12-15 years ago and it became apparent that the department needed something, I guess I could best characterize it as a rapid response fund.

A lot of times … what happened was … what made it come about, a number of years ago, we had an instance where three of the supply wells were contaminated simultaneously by a third party. In that instance, what happened was the Department of the Environmental Protection essentially goes to the operator of the water system and said, You are responsible for it regardless of liability. The Fire District had to make some very rapid moves to try to correct this problem that effected the three wells, three out of our five, so we could operate on the two, but it was a tremendous amount of juggling. Ultimately, at the end of the day, the Regulatory System through the DEP moved very slowly, so what the Fire District did was we contracted with our own consulting firm and we managed out investigation, if you will, so the investigation led us to the source. That again was completely done by the Fire District.

Once we identified the source, at that point, we went back to the DEP and said, Look, we are handing you this violator on a silver platter, do something. So they did. In that lesson we sort of learned that we needed to have some money in the budget that was discretionary, if you will, and because with a lot of environmental things, there is a legal component, as well, having to do with title to land, having to do with court actions, to enforce actions that the DEP may not be able to enforce immediately. We combined the two. It just says Legal and Engineering. It is to be used for either purpose, but again, mostly for rapid response and then just to fast forward to 2013, where we had some problems with our water quality with some contamination, we were able to immediately hire a consulting firm that came in and worked with us on the chlorination of the system which was able to at least eliminate the contamination which was a violation as a short term fix. We are still working on the long term solution, but again, we had the ability to contract with somebody right away, because the funds were in place.

I think we showed in our recent presentation with the Civic Association several of the past, I will say out of the past three years, we did return fairly good amounts of money from that fund that were unexpended. It is not like we go every year and spend $499,999.

Stan:                Thank you very much. I appreciate that.

Rick:                Your welcome.

Fran:                May I just ask one question? When was the last time there was a change in the water rates?

Rick:                I would say it was probably … I would say it was more than 10 years. My guess would be perhaps, 12 years ago. That is when we restructured the … originally, it was an either a 2 or 3 tier system and that is when we went to the minimum use. We reduced that to $36 a year for the 20,000 gallon minimum use, because in our study, we had found that there were quite a few households that did not even come close to using the 40,000 which was our previous minimum and then we structured it so that the high volume users on the back end pay considerably more per 1,000 gallon unit, once they get into hundreds of thousands of gallons of use, but the average household is 40,000. That is the $72 figure.

We sort of have the framework to tweak that. It seems to be a very equitable billing structure that we have right now, as far as we are rewarding people for their minimum usage if people want to conserve that is fantastic. I am all for conservation and so a number of people, say single person households, older people who just are not using the tremendous amount of water, they get the advantage of having that fixed cost of $36 and then very quickly, the average family it jumps right up to the $72 and then from there … it could easily be adjusted to meet the needs of what you discussed earlier.

Fran:                You probably already know this, but I believe the highest rate that is paid by anybody in this district is $2,600. Is that correct?

Rick:                I do not know.

Fran:                Okay.

Mike:               We list them every year. I did not look.

Fran:                That is okay, but it is less than $3,000 and I am pretty sure that for some of the users that I see using, they are using more than … that is a bargain, certainly for a great many people.

Laurie:             A lot of people water their lawns, even when it is raining, irrigation systems.

Rick:                I would tend to agree with your observation  I will say this that we certainly do not have to chase any of the high volume users for payment.  There is never a problem there. Those checks come right in. I do not suppose it is a hardship for most of them.

Mike:               $3971.

Fran:                Excuse me, $3971.

Stan:                Can I ask a question?

Fran:                Sure.

Mike:               Who dictates these miscellaneous’, because quite honestly, engineering and legal and training are not miscellaneous and I think that is why he had a question to begin with. It has always been treated as miscellaneous, but I think it is wrong. I think it is operations and all I have to do is flip a switch on the cells and it will go into where I think it belongs, but did you make that determination?

Rick:                No. I think that from way back, it was never in the budget template from a historic viewpoint and I do not know when training would have … we have always had an account for training, but it was never put anywhere else and so when the legal and engineering line item was added, that is just where it was added. I think the commission presented the concept of it and at the time, the Prudential Committee and the Treasurer said, we will just put it here.

Mike:               If the Prudential Committee does not care, the Treasurer would like to put it into regular operations and not have a $52,000 miscellaneous hanging out there to challenge questions.

Laurie:             It as far the Expedience Fund. I think that should be labeled Expediency Fund. I think they are perfectly entitled to have one, if they ever …

Rick:                It is legal in engineering. It is not just for emergencies, it is for operations, as well.

Laurie:             Right.

Mike:               I am just going to fix the cell.

Fran:                I think that is much better.

Laurie:             If you get the money, but if we call it something different, you are not going to be upset, are you?

Rick                 The board would have no objection.

Fran:                Thank you.

Laurie:             I agree. I think that anything over $2,000 for miscellaneous is ridiculous.

Fran:                We got rid of the $27,000 in the Treasurer’s Department.

Mike:               That is changed, as well, so the Water Department has no miscellaneous.

Mike:               That will clean up that motion to read and … I never understood why $52,000 was for miscellaneous. I think we have concluded your warrant. I think we can get a warrant published and printed.

Charlie:           The only thing that I was wondering.  It would be Rick. Your Capital Articles, do you have a copy of what you want?

Rick:                I can take care of that.

Charlie:           Okay.

Mike:               I have the templates.

Charlie:           You have the templates for Fire too, because I know they are getting rid of the truck.

Mike                I will take last years and substitute the VIN number and the new amount.

Charlie:           For the Fire too?

Mike:               Yes, because I already chased the Chief for the VIN number for that truck, as well. We do a VIN reference and we authorize a trade in, I think, if I recall. I can take care of those, too. Get you the VIN number. If you send me your first draft, I will tidy it up and drop in the pieces that you do not have. Do you have one pretty much ready to go?

Charlie:           I will change it after tonight.

Mike:               Email me that and then I will drop in the touch ups that I need to do for you and I will send it back to you and we should be good to go.

Rick:                Just as a note on that, so with the truck that we are looking to replace, we are going to trade in the existing vehicle and not dispose of it through a bid, only because it has to go. We do not need any liability for that truck. We can give you the VIN on that one that is getting traded in.

Fran:                Mr. Molloy

Fran                 The next item on the agenda is the RFP for Treasury Services. Mrs. Hadley.

Laurie:             You sent me the one from the West Barnstable and I have re-typed it with the figures that apply to the Cotuit Fire District and changing West Barnstable to Cotuit. Things like that throughout it. I do have a couple of questions on it. I have a couple of figures to come. Mr. Dailey is going to give them to me.

On page 1, paragraph 2, we have a couple of blanks in there. In paragraph 3, we are going to need a copy of Tony’s job description. On the second page, I have a question their RFP referred to a district accountant and we got into a hassle over what we call Tony. What did we wind up with?

Fran:                I believe she is the Assistant Treasurer. That will be changed. I have suggested leaving out the location of the district, this District Account will be changed to District Treasurer. I had suggested leaving out the address that they have in theirs, because it may change from time to time.

Fran:                Right.

Laurie:             Do you both agree with that?

Fran:                Yes.

Laurie:             In the last paragraph on page 2, theirs says approval by the Fire Chief and the Prudential Committee. Should it just be the Prudential Committee or do we really need Fire and Water in there too?

Fran:                No, it is just the Prudential Committee.

Laurie:             I do not think I see any questions on page 4. The pages are not numbered, because I have not figured out how to make this damn program number them.

The time schedule, I have no idea what we are using for a time schedule.

Fran:                Can we just go back to the first page for one second.

Laurie:             Sure.

Fran:                I had a question about the Fire Department and Water Department Administrative Assistants take care of health care administration and pension administration?

Laurie:             I think I changed that.

Fran:                Oh, did you? Okay.

Laurie:             Additionally, the District Treasurer worked with the Fire Department and Water Department, the Administrative Assistants on issues of the [

Mike:               She is 18 hour and you are going to call her Assistant Treasurer?

Fran:                Yes. That will changed. Don’t we need to apply a time overlap?

Laurie              I thought I had that in there. No? Did I miss it? The second or third typing.

Laurie:             Yes, under term.

Laurie:             Okay, I see it. Is that acceptable, do you think Michael?

Mike:               I am still catching up to you.

Laurie:             We are on page 2.

Mike:               Term?

Laurie:             Yes. The last sentence in the first paragraph under term.

Mike:               This is your new contract. It is not going to provide for transition at this point. You are going to …

Laurie              How can we correct that?

Mike:               Let’s just get your new contract so that it works for you. You are basically saying you want to do a three year contract. The CFD intends to continue their relationship with the vendor for no less than three years on the basis of any negotiation after the completion of first year contract. Is that what this language says?

Laurie:             That is exactly what it is.

Mike:               Each year after negotiation … because you are not negotiating, you are … so this needs work, I would say.

Laurie:             Okay.

Mike:               That in and of itself. Should the contract be terminated on any anniversary dates, including the retiring Treasurer shall be required to provide services.

Laurie:             That language is not in here at all. I do not know if you can …

Mike:               Let’s work on this. I will help you with that.

Laurie:             Okay.

Mike:               I have to look at what you are trying to cut and paste and I am not sure what you are trying to say here. Basically, you are going out for a three year term and you do not want it to end abruptly at the end of … and quite honestly, this contract does not mean it is perfect, because West Barnstable wrote it. Another lawyer wrote it.  Different lawyer. The point is you are trying to do a three year agreement. This agreement doesn’t it … I know theirs requires on the payment, that they pay 85%.

Stan:                It is in here somewhere, I saw it.

Mike:               Through the work year and then they retain 15% until the year end stuff is completed. I do not think you have to sweat the post termination, because your contract is going to require whoever has been doing the work through June to button up that year.

Or they do not get paid.

Stan:                Maybe to button up the year, but

Mike:               Then there is the training.

That is separate … I would introduce that as not in term. I would introduce that as a separate component.

Laurie:             Okay.

Mike:               Post termination or something. Just define what you want to do. You cannot force somebody to stay past that date, if that is your term date. You need to work that out, but do you understand what I am saying.

Stan:                I understand.

Mike:               It if not about the fact that the work ends and that year is in trouble. You are bringing in a new professional in theory. They are going to know what they are doing, right? There was not any of that in the last transition. That is for sure.

Stan:                We know better.

Mike:               I think you need to think in terms of a term and then some additional language for continuity or something.

Laurie:             This whole section.

Mike:               It has to be worked.

Laurie:             Yes.

Mike:               Then you are proposing Fiscal 16, 17 and 18, so that it okay and then the next one is where they … Progress billing is up to 18, 85%. I know with them it is a fixed fee. We bill 85 divided by 12 and then we finish it, get the free cash certified and then we pay the other 15%. That is what you are trying to accomplish, as well.

:                       Yes .Now I am caught up to you. Five copies, proposal shall be admitted in two sections. You need to work with your accounting procurement people, because they are the ones who better know this stuff than anybody. They are the 30B experts, right? Where it starts here, this is all 30B stuff and this is designed to be a quality based procurement, not a bottom line procurement.

Laurie:             Yes.

Mike:               I think the last one you did was a bottom line procurement, but I think you turned it into a quality based in some way. This whole section is about how you are going to evaluate, right? The first section should provide and this is defining what you want in the proposal that comes to you. You want a first section that indicates A through H, in addition, you should also provide A through E and then you have a second section that is the cost proposal and you take the proposals and you keep the cost hidden and they keep the other piece open and you compare them, then you open the cost. Just make sure with your CPO or whoever is doing the procurement, that that is the understanding that they agree that this is good, so the cost is force the proposer to establish the man power costs, how many hours, the rates they are charging, each one, any travel, supplies or other. You break the bid down to I am going to give you 400 hours at $100 for $40,000, but somebody else is going to give you 200 hours and $200 for $40,000 and you are going to evaluate the proposals to see which one you think is a better offering. Everybody has to meet the minimum. You have to have the experience and so much credentials, etc., etc.

Fran:                The previous one was broken down like that.

Mike:               Then the timeline and then your evaluation. I think you have the framework pretty well. I am back next week. I work all day today. If you get something you want me to look at, beat up a little bit more, review it with the Procurement people and I will help you with it next week, once you get through this week. I think you have the gist of it here, you just need to work out amongst yourselves to make sure it … and the County people. I can get you the ambulance revenue. I will give you the ambulance and water revenues right now.

Laurie:             Okay.

Mike:               Otherwise it is looking better.

Laurie:             So I will stick the approximate in there too.

Mike:               Okay. To answer your question, you are asking for Water. Water plus antenna, those are the both, okay. Water is $436,000 plus $100,000, $536,000. Ambulance is $110,000 and Water is $435,000. $535,000, almost $536,000. The ambulance for all intensive purposes was $116,000.

Fran:                We need to do a transfer of funds from the reserves for, we had to do two change orders for the HVAC installation. One was to clean the old furnace downstairs, which during the cleaning process was found to have also a cracked firebox and then we had to purchase an oil fighter furnace to get us through for the unknown period of time between November and when the gas was going to be turned on. Mr. Dailey, did you want to include in that the snowplowing? Didn’t we come up with a figure of $6,500?

Mike:               I can’t recall to be honest with you. If you think it was $6,500 to cover everything.

Fran:                I believe it was $6,500, yes.

Mike:               In that particular budget, do we have two lines? One is for building and one is for grounds. We are going to put the Article, because we have an Article for the HVAC.

Fran:                Right.

Mike:               But we are putting that into the budget or into the Article?

Fran:                No, this is a transfer from a reserve to cover …

Mike:               Yes, but where are you proposing the transfer? To the Article or to the budget?

Fran:                the Article.

Mike:               You can’t do the parking lot or whatever … you have to do two separate transfers. One goes to an Article and one goes to the Freedom Hall budget.

Fran:                We need a transfer of $4,856 from the reserves for the HVAC to cover change orders.

Laurie:             I move we transfer $4,856 from reserve to the Article for the installation of the HVAC.

Stan:                Second.

Fran:                All those in favor? unanimous

Mike:               I thought we were going to take care of just the HVAC today and then we were going to …

Fran:                You want to leave the rest?

Mike:               Let the budget roll to see, because we will just fill in the budget in May or even June.

Fran:                Okay.

Moving on to street lights. We have had a request from a resident who lives on Screecham.

Mike:               We skipped insurance. Was that just to move the stuff around?

Fran:                Yes. Who would like to have street lights installed.

Mike:               Can I have one more … the insurance, is there an intent to issue an RFP for insurance, as well for fiscal 2016?

Fran:                Yes, we have to.

Mike:               Can you add to that the counties efforts right behind the one you are working on?

Fran:                Sure.

Mike:               We will pick that up when we do the next one.

Laurie:             She has a good relationship with the county

Mike:               Insurance is going to be another RFP and we are going to start moving that as fast as we can too. Now street lights, I am sorry.

Fran:                Street lights, okay. We have had a request from a resident that lives on Screecham that they would like to have street lights. I have not spoken to the gentleman. First of all, I would assume he would have to speak to all the rest of the residents on the street. Before that, there are no poles on Screecham.

Laurie:             We have a policy that we would only install new lights where there was an intersection or some area, not just to provide personal street lights for people.

Fran:                Okay.

Laurie:             That was an old policy. It has not been carried over, because we have not had that many requests.

Fran:                This goes to my plans for next year which is doing a Policies and Procedures meeting, so we will know all this. I will get back to Mr. Schaeffer.

Laurie              We make Cotuit Bay Shores pay for their own street lights, because they wanted in ground, where there is a precedent for that too.

Fran:                I can let him know that.

Fran:                The surplus furnace. : I advertised it in the newspaper and I advertised it on Craig’s list.

Laurie:             And the State list, you said.

Fran:                I did not get it on the State list, but there has been … we had some inappropriate responses. One of Craig’s List, wire us some money and we will come pick it up. That sort of thing. I am not quite sure what to do.

Laurie:             Call a junk dealer.

Fran:                I guess maybe I will talk to Elaine at the county about the State surplus list, but there does not appear to be a whole lot of interest in somebody buying a very minimally used 85,000 BTU oil fired furnace. I thought maybe at the candidate’s night, I would announce it to the Village to see if anybody is interested and if anybody else has any ideas, let me know.

The Fireman’s Association would like permission to use the district seal on the 2015 t-shirts that they do for the 4th of July parade.

Laurie:             I think that is appropriate.

Fran:                Just so you know, on the back of the t-shirt is going to be beach chair with Marge’s initials on it.

Laurie:             That is nice.

Fran:                The last order of business is approving the minutes from the 23rd of March and the 13th of April.

Laurie:             I read them. I do not have them with me, but I did not see anything.

Stan:                So moved.

Fran:                Is there a second? Unanimous

Then Laurie and I attended a joint Fire Commissioner and Prudential Committee Meeting on the 26th, did you get a chance to see those?

Laurie:             Yes. I did not see anything.

Fran:                I need a motion to approve those.

Laurie:             Second.

Fran:                All those in favor? Unanimous

Fran:                Is there any other business? I will take a motion to adjourn.

Laurie:             So moved.

Fran:                We are adjourned.

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