Back to Capital Outlay Committee Minutes
Minutes of the Town of Hingham
Capital Outlay Committee Meeting
10/28/2009 at Town Office Building
COC Members Present: Chairman Ray Eisenbies, Ron Kirven, Lucy Hancock, and Jonathan Asher from the Advisory Committee
Guests: Mark Thorell, Tom Campbell, Frank Jones, Scott Bosworth, and Tory Dolan (representing the Recreation Department and Recreation Commission)
The meeting was called to order at 7:30 PM.
Recreation Department Request
The primary agenda item was the Recreation Department request for the purchase of a software package from Active Network. ActiveNet is a web-based application that includes membership management, facility reservation, activity registration, public access, point-of-sale processing, and inventory controls. ActiveNet hosts the software and data, and access is via the Internet. The upfront costs are low, and the company uses a transaction-based pricing model. There are no ongoing software maintenance or technical support fees and no client access license fees.
The ActiveNet purchase price is $11,700. Much of this cost is for training and consulting services. The Recreation Department will receive 100% of the program fees associated with each on-line transaction. The consumer will be charged a 5% convenience fee from ActiveNet for on-line purchases. (Part of this 5% fee is the cost of credit card processing.) ActiveNet will charge the Recreation Department a 1.5% fee for the processing of any over-the-counter transactions, e.g., checks.
Capital Outlay Committee members raised concerns about security and liability. Mark Thorell and Recreation Department office staff will have administrative privileges on ActiveNet. What are the methods for safeguarding credit card transactions? How can identity theft be prevented? Is the town protected from liability? Can liability be transferred from the town to Active Network?
COC members requested that the Recreation Department research the security issues. The COC also will ask Town Counsel to review the contract language regarding the transfer of liability and determine if any changes are necessary. Ray Eisenbies will speak with Ted Alexiades about the need for a letter from the COC to the Recreation Department concerning security / liability issues.
The COC determined that the ActiveNet expense meets the criteria for capital outlay. ActiveNet will allow the Recreation Department to do online registration for summer camp, issue key cards for fitness room memberships, simplify the scheduling of athletic field use, and improve the marketing of programs. The handling of cash will be improved immediately, as checks and cash will be eliminated as much as possible. Cost recovery will not be immediate but more sales will result from using the application. Reduced manual processing will save paper, postage, and money.
The Recreation Department has the funds to cover 100% of the upfront cost of ActiveNet. The Capital Outlay Committee voted unanimously in favor of the request to spend $11,700 to purchase ActiveNet with the understanding that the security and liability issues will be resolved. The meeting minutes will suffice as proof of approval to Ted Alexiades so he can generate a purchase order.
Other Business
The Committee conducted a preliminary review of the draft Financial Policy document and the section of the Town By-Laws that pertains to the Capital Outlay Committee. A number of house cleaning changes are proposed. Revisions to the Town By-Laws require Town Meeting approval. Revisions to the Financial Policy do not require such approval.
Jon Asher will provide Committee members with copies of the complete Town of Hingham Financial Policy document, Town By-Law Article 14, the Five Year Forecast, and the draft Capital Outlay Committee Plan for Budget Year FY2009 Notes. Committee members will review these documents in preparation for discussion at a subsequent meeting.
Meeting Schedule
Committee members discussed the meeting schedule for the upcoming budget season. Meetings with town departments will commence soon. Members decided to meet on Thursdays in December and then change to Mondays or Wednesdays in January.
The meeting adjourned at 9:10 PM.
Respectfully submitted,
Lucy Hancock, Secretary