Meeting Minutes

The Finance Committee met Tuesday, August 9, 2011 at The District Offices at 245 Main Street, Cromwell, Connecticut.

The Chair, Doug Sienna, called the meeting to order at 4:30 PM. In addition to the Chair, present were Committee Members Gerry Amodio and John Luddy. There was a quorum. Also present were Board Chairman - Bill Candelori, Board Members - Peter Centurelli and Ed Sasso, and Executive Director - Brian Armet.

1) Property, Auto & General Liability Insurance and Workers Comp Policies Quotes for October 1, 2011 to September 30, 2012

The Committee and the Executive Director reviewed the three quotes that were received for The District's Property, Auto & General Liability Insurance and Workers Comp Insurance for October 1, 2011 to September 30, 2012. The Executive Director reported that originally five Insurance Agents had expressed an interest in quoting. However, three decided not to with two backing out at the last minute. Committee Members and Board Members present indicated that they had never heard of the H. D. Segur Insurance Agency nor Argonaut and Axis Insurance Companies. The Executive Director and Committee Member Gerry Amodio reported that H. D. Segur is a well respected Insurance Agency out of Cheshire. Mr. Amodio also reported that Argonaut and Axis are niche Insurance Companies whose primary focus is Water and Wastewater facilities. The Committee directed the Executive Director to review H. D. Segur's quote to ensure that it is constructed similar to The District's current insurance policy, that all required areas of insurance are covered and to review it with District Counsel.

Mr. Amodio moved, Mr. Luddy seconded, and the committee approved unanimously:

MOTION: The Finance Committee recommends that the District's October 1, 2011 - September 30, 2012 Property, Auto & General Liability Insurance and Workers Compensation Insurance be awarded to Argonaut and Axis Insurance Companies through H. D. Segur Insurance Agency, and refers this recommendation to the Board of Directors for their review and consideration.

2) Definition of a Facility Emergency

The Executive Director presented to the Committee two definitions of a Facility Emergency and reviewed with the Committee the history behind the development of a definition of a Facility Emergency. He also indicated that he had reviewed both definitions with the Board Chairman and District Counsel. Board Chairman, Bill Candelori stated that typically it is best to have a definition that is brief and succinct.

Mr. Amodio moved, Mr. Luddy seconded, and the committee approved unanimously:

MOTION: The Finance Committee recommends that the District's By-Laws be amended to include the definition of a Facility Emergency to be "An urgent need for assistance or relief", and refers this recommendation to the Board of Directors for their review and consideration.

3) Annual Adjustment of Chairman's and Executive Director's Spending Limits

The Committee Members and Board Members reviewed and discussed the spending limits of the Executive Director and Board Chairman, how they should be interpreted with respect to emergency spending, how they should be characterized and defined, and at what point and for what type of expenditures should the Executive Director have Finance Committee and/or Board approval before authorizing an expenditure. The Committee discussed dollar limits, limits based on a percentage of the budget line item with a base amount, versus once the budget is approved authorized to approve purchases within the line item. It was pointed out that the Executive Director's current spending limit is below the weekly payroll expenditure. The Committee also discussed no spending limits for emergencies. The Committee indicated that they wanted to review what other communities did.

Mr. Luddy moved, Mr. Amodio seconded, and the committee approved unanimously to table any action on adjusting the Executive Director's and Board Chairman's spending limits.

Adjournment:

Mr. Amodio moved, Mr. Luddy seconded, and the committee approved unanimously to adjourn at 5:45 PM.