AVON TOWN COUNCIL
MEETING MINUTES
January 6, 2011
I. CALL TO ORDER
The meeting was called to order at 7:30 p.m. at the Avon Town Hall, in the Selectmen's Chamber by Chairman Zacchio. Members present: Mrs. Samul, Messrs: Evans, Shea, and Pena.
II. PUBLIC HEARING - None
III. MINUTES OF PRECEDING MEETING : November 16, 2010 Special Meeting
December 1, 2010
Mr. Evans stated that he would like to reiterate the comments he has made in the past that the minutes are too long. He feels it requires a significant amount of staff time, and the minutes are received for approval after a considerable time has lapsed and he is not sure whether they reflect an accurate picture. He requested that this item be put on an agenda and the Council have a full discussion about this and we come to a decision on how we will keep our minutes and then he will not have to raise this issue again. Mr. Shea and Mr. Pena both stated they favored lengthy minutes because there are many comments that are stated and some times it is good to know the tone of the meeting, and there have been times we have had to go back and refer to previous minutes. Both have served on Boards that had
lengthy minutes and like to see the minutes as written. However, they both agreed that this item should be an agenda item for further discussion.
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council accept the November 16, 2010 Special Meeting minutes as submitted.
Mrs. Samul, Messrs: Shea and Pena voted in favor. Mr. Zacchio abstained (absent from meeting) and Mr. Evans abstained.
On a motion made by Mr. Pena, seconded by Mr. Evans, it was voted:
RESOLVED: That the Town Council accept the December 1, 2010 minutes as submitted.
Mrs. Samul, Messrs: Zacchio, Shea, and Pena voted in favor. Mr. Evans abstained.
IV. COMMUNICATION FROM AUDIENCE
Len Del Gallo, Avon Day Committee Chairman, reported on Avon Day 2010 (The financial statement is included and made part of these minutes). The event ran on September 25, 2010 from 11:00 a.m. to 6:30 p.m. The event raised approximately $8,500 for local charities including $3,500 to the Special Needs Fund. He reported that the Committee started with $8,000 in the bank and recalled about three years ago there was $280 and are now up to $12,200. The Committee is trying to maintain $10,000 as a rainy day fund because if it cancels a few days before the event there will still be the cost for the tents and will protect our sponsor Avon-UNICO and the Town so we do not have to supplement the Avon Day festivities. He reported there were eighty corporate and non-profit attending and twelve food booths. The Committee hopes to continue this Avon Day event and if we do the date would be September 24, 2011 and Avon-UNICO has agreed to sponsor the event and would like Mr. Del Gallo to
continue as its Chairperson and will be the 30th anniversary and a special occasion for the Town and the Committee will try to do something special.
The Committee would also like to install another electrical box behind the food booths to avoid generator use and its cost of $500 per year; the estimated cost for the new electrical box is approximately $3,500. He reported that an electrical box has already been installed behind the stage to avoid use of generators there which cost $1,700 and came out of the Avon Day fund. He reported that he is getting in touch with the School Department on whether they will allow the installation of such electrical box; he also spoke to Bruce Williams, Director of Public Works and his staff can make the electrical box with approximately twenty outlets which would be more than enough to supply the food tents and booths. He reported that there is a special request to the Town Council from the Committee for corporate
booths to be able to sell a product; this was brought up last year and the question then was you need to do more research on it and if this happened they would need a certificate of insurance holding the Town harmless if any liabilities came out of their product. He reported that the Committee sent out a survey to sixty corporate booths that had participated in the past, along with self-addressed envelopes, hoping to get back at least twenty percent; the Committee received eight surveys back. The questions asked were how many years have you participated in Avon Day; would you like to sell your product at Avon Day; if allowed to sell your product do you have insurance to hold the Town harmless; and any additional comments. He reported that all comments were favorable for hoping the event would continue; two people were not in favor of selling their products and becoming a commercial event; six people were in favor of selling their products but were not strongly in
favor and would like to see the event continue. He posed the question to Council to seek their approval to have the corporate booths sell their products. He expressed his personal opinion that he would not like to see this event commercialized and keep it the way it is; however he is not the majority in the Committee and the Committee’s question is why not if the corporate booth sponsor will give us a certificate of insurance and will get more booths participating and have products for our residents to purchase while they are there. The Committee will meet again on January 19th and he would like to finalize this as it seems that it comes up every couple years and draw it to a conclusion so we can go on. Mr. Del Gallo thanked the Council for allowing the Committee to have Avon Day, the Town Manager for his cooperation, School Department, Police Department, Fire Department, and everyone that is involved in making Avon Day happen. He also
gave a special thanks to Laurie Carlson at the Public Works Department; he stands front and center but she does all the background work and he gets the credit at the end; she does a great job from year to year and would like to have her continue in the position. He reported that the Committee’s next meeting is on January 19th at 8:45 a.m. and invited Council to attend if they wish.
Chairman Zacchio expressed Council’s thank to Mr. Del Gallo for putting the event on every year and volunteering to chair it with support from the Committee, Laurie, and others but without Mr. Del Gallo doing that work, Avon Day would not be as successful as it has been every year; Council appreciates all the hard work Mr. Del Gallo does and hopes that he continues to chair it as the Committee is asking. He reported that it has been a great success over the last few years. He reported that with regards to the question of the corporate sales box the decision made in the past was because of the local flavor of the event that we are concerned that it would become more of a corporate vendor event rather than something that is able to capture the flavor of Avon and all we have to offer from a services
perspective; he has no particular concern with selling goods and the insurance issue but has concern around commercializing the event and something that in all the years we have done it we have held very dear to our heart that it is just a local Avon event and we do not do a lot of commercial sales. He noted that the work that the Committee has put into the electrical box does get used by the Town and while it comes out of funds that are raised through Avon Day the schools have used it for events that need electrical power so it would be a welcome addition to have it on the other end and if it comes before Council it would be something that they would like to see put in place.
Mr. Pena questioned how many booths there was the prior year. Mr. Del Gallo responded that there were seventy-six booths last year and eighty booths in 2008. Mr. Del Gallo reported that the field can hold approximately one hundred twenty booths. Mr. Pena questioned if the cost of the booth would increase with regards to consideration of selling product. Mr. Del Gallo responded no; it would remain the same at $300. Mr. Pena reported that he does not see the significance of having the commercial product sold at the event and would be different if the survey had a greater turn out but he does not think that people go there to purchase product, it is more of a family affair to eat and have a good time with their children and not so much to buy products. Mr. Pena reported that Sam Collins
Day has booth areas that sell product but not sure how successful they are; it would become too commercialized. Mrs. Samul reported that if in fact we had it open to local produce, those grown or sold in Avon, but how do you limit it to consumption goods? Mr. Del Gallo reported that we do sell products at Avon Day for the charitable organizations. Mr. Shea reported that we are talking about the Committee and Mr. Del Gallo doing a great job but it is really UNICO who should be recognized as a service organization, civic-minded group that does an outstanding job. He would be opposed to us selling product and hopes that if he is in the minority and it passes and the Committee chooses to go forward that the Town Manager, the Town Council, and the Town of Avon working along with the Committee check with our Town Attorney and Town Insurance Agent to make sure that we produce documentation that will be able to protect the Town from risk and provide us with the kind
of security that we need to enter into this kind of event. He added that it is unlikely that if forty of those sixty surveyed wanted it he still would not think it is a good idea. Mr. Evans reported that he would be inclined not to support commercial sales as well; he has some concern that if the event is opened to commercial they may take the majority of those one hundred twenty potential spots and leaves some of the not-for-profits without an opportunity to participate in Avon Day; he likes the way it is and it is one of the greatest days of the year in Avon. Mr. Del Gallo reported that we never try to have more corporate booths than local, non-profit and have kept it that way throughout the years, even more reason not to go that way. Mr. Shea reported that seventy or eighty booths are a big success. Mr. Pena questioned that Mr. Del Gallo is in the minority in the Committee that was not really in favor of going commercialized. Mr. Del Gallo
responded that with a Committee of twelve there are probably four members who are not in favor; the other eight members are trying to make the event grow. Chairman Zacchio reported that the Council is not in favor of commercializing Avon Day as they think it is perfect the way it is. Mr. Del Gallo responded that Council is consistent because since he has been involved over the last year sixteen years they have not allowed it in the past.
V. COMMUNICATION FROM COUNCIL - None
VI. OLD BUSINESS
07/08-08 Library Project
The Town Manager reported there is an official ground-breaking ceremony at the library on Saturday, January 8th at 11:00 a.m. He reported that the project is off and running, site work and excavation is underway, and by Spring the project should be into the framing stage. He reported that the Assistant to the Town Manager has been working closely with the Library Building Committee along with the Director of Public Works who is serving as the liaison in the construction meetings with the Architect and Enterprise Builders. Mrs. Samul questioned if any of the abutting property owners were surprised when they realized how many trees were coming down. The Town Manager responded that surprisingly there was only one phone call and informational; the neighbors have been wonderful and not a lot
of concern about the extensive site work. Mr. Shea questioned if there will be a town representative at every one of the job meetings. The Town Manager responded yes. He reported that there was an e-mail that went around earlier today from Mary Suter regarding an announcement to be made at the groundbreaking ceremony that the fundraising committee had some donations at the end of the calendar year and are up to cash and commitments of $650,000 right now so they are well on their way to making their goal of $1 million. Chairman Zacchio reported that he would be making very brief remarks at the groundbreaking ceremony and asked Council if there was anything in particular that he should note. Mr. Evans remarked that Chairman Zacchio has Council’s proxy. The Town Manager reported that moving forward this item will be included under Town Manager’s Report with a brief overview of the status unless otherwise deemed necessary. He added
that the library staff has been wonderful about being in the field with their digital camera taking pictures and are being posted on the library’s web site, www.avonctlibrary.info, which is a visual diary of how construction is progressing.
10/11-01 FY 11/12 Budget: Town Council Budget Workshop Schedule:
Recommended Date: Saturday, February 12, 2011 at 8:00 a.m.
Chairman Zacchio reported that the schedule has been compressed as traditionally Council has been able to wrap up the budget by the mid-afternoon and while this is a little more aggressive than our normal timeframe we are hoping that we can move through it fairly well that day but would leave open towards the end of the day in case we need to continue on. Mr. Shea questioned if the department heads have seen the schedule and signed off on this. The Town Manager responded yes. The Town Manager reported that in terms of the budget books we are working hard to get everything together and the goal is to get the budget books to Council by the end of January at the latest so you have an adequate opportunity to review it prior to the budget workshop.
On a motion made by Mr. Pena, seconded by Mr. Evans, it was voted:
RESOLVED: That the Town Council approve the Budget Workshop Schedule for Saturday,
February 12, 2011 at 8:00 a.m. in the Selectmen's Chamber
8:00 a.m. Budget Overview
8:20 a.m. Library
8:40 a.m. Fire Department
9:00 a.m. Police Department
9:25 a.m. Break
9:40 a.m. Public Works
10:10 a.m. General Government
10:30 a.m. Public Safety (except Fire and Police)
10:50 a.m. Health/Social Services
11:10 a.m. Recreation & Parks
11:30 a.m. Conservation & Development
11:50 a.m. Lunch
12:20 p.m. Engineering / Sewers
12:40 p.m. Special Revenue funds / Capital Improvement Program
1:00 p.m. Adjustments, wrap-up – Adjourn
Mrs. Samul, Messrs: Zacchio, Shea, Pena, and Evans voted in favor.
10/11-26 Appointment: Avon Clean Energy Commission (12/31/2011)
On a motion made by Mr. Pena, seconded by Mr. Shea, it was voted:
RESOLVED: That the Town Council table the appointment to the Avon Clean Energy Commission until the February 3, 2011 meeting.
Mrs. Samul, Messrs: Zacchio, Shea, Evans, and Pena voted in favor.
Chairman Zacchio reported that there currently is not a chairperson on the Avon Clean Energy Commission. He reached out and talked to the Acting Chairman Bernie Zahren and has acted as Vice Chairman in situations where there has been absenteeism; however he is not sure that he can support the chair’s position with his calendar so he will continue on as the Acting Chairman for the month while the Commission has a chance to discuss it and Mr. Zahren has a chance to realize whether or not he can commit the time to it and if not then we will have to decide how we want to move forward with it. Mr. Pena questioned the reason for the ACEC meeting being cancelled this week. The Town Manager responded that there was no quorum.
VII. NEW BUSINESS
10/11-27 Approve Proclamation: James DiPace, Fire Chief, Avon Volunteer Fire Dept.
Chairman Zacchio asked Council to waive the reading of the proclamation as it is fairly lengthy and plans to read it at Jamie’s retirement dinner. He applauded the Clerk for doing a fantastic job of capturing the essence of Jamie’s service to our community and the Fire Department over his lifetime.
On a motion made by Mr. Pena, seconded by Mr. Evans, it was voted:
RESOLVED: That the Town Council waive the reading of the proclamation and approve the proclamation as follows:
WHEREAS: The Avon Town Council on this 6th day of January, 2011 adopt this RESOLUTION in recognition of the faithful service of JAMES W. DIPACE as a member of the Avon Volunteer Fire Department, and his retirement as the Chief of the Avon Volunteer Fire Department. The Town Council wishes to express, on behalf of the Town of Avon, their appreciation for his service.
WHEREAS: JAMIE’S record of service in the Fire Department is personified by the number of years that he has dedicated to the Fire Services. Literally holding every position and lastly as Chief for 15 years. Truly a public servant in every sense of the word. Jamie, is probably one of the very few residents in Avon that can claim the distinction of being a native of Avon. To that end he has served his community well.
WHEREAS: Jamie’s career in the Fire Department began when he was 18 years of age as an auxiliary member, this was before the category of Cadets. He became a full fledged member within six months. Within five years he became 2nd Lieutenant at Company 1 and within one year he was elevated to 1st Lieutenant, one year later he was promoted to Captain. Within four years he became Deputy Chief and a year later to Assistant Chief and six years later as Chief. As indicated, Jamie proceeded through the ranks in very quick order, which is indicative of his interest in the Fire Services, and his dedication to serving the Town. Jamie’s tenure within the Fire Department has been recognized by many – he is
synonymous with the Fire Department. His dedication is without question the greatest that anyone can expect of an individual. We have no idea how many times over the past 37 years that he responded to fire alarms, always aware that someone may be in distress.
WHEREAS: Jamie has been steadfast that the Fire Services remain a volunteer service. This commitment requires a great deal of personal efforts and the ability to infuse this thinking to all members of this great volunteer organization. He has the ability to command a great group of volunteers to be professional, dedicated, well trained and enthusiastic. Knowing full well that the time spent in service to the Fire Department is time that is taken from family and cognizance of the dangers associated with protecting life and property. The camaraderie among the volunteers is established by its Chief and one will find that his volunteers respect him and have personally grown in their abilities and in the training required of our volunteer firemen.
Even though he relinquished his position of Chief on December 31, 2010, he will continue to be an active member.
WHEREAS: Jamie is recognized statewide for his ability and talents – he has been past president of the Connecticut Fire Chief’s Association and Past President of the Capitol Region Fire Marshal’s Association. Presently he is the Emergency Management Director for the Town of Avon as well as Assistant Building Official and Fire Marshal.
NOW THEREFORE, BE IT FURTHER RESOLVED: That the Town Council of the Town of Avon, on behalf of its citizens expresses its grateful appreciation for his combined dedicated services and his role as Chief and that this RESOLUTION be spread upon the minutes of January 6, 2011 Town Council Meeting, and that a copy of this RESOLUTION BE PRESENTED TO Jamie DiPace on January 15, 2011.
Mrs. Samul, Messrs: Zacchio, Shea, Evans, and Pena voted in favor.
10/11-28 Discuss scheduling possible “pre-budget” meeting
Chairman Zacchio reported that this is discussion in what has turned into a “pre-budget” meeting and the Town Manager has been talking about what other communities have done in terms of “a state of the union” address, not a budget meeting per se but a meeting of the three boards called by the Council where our professional staff, the School Superintendent, and the Town Manager, might give a presentation about the economic status of the town, to borrow Mike Mont’s term from the Board of Finance days, what are the big rocks that we need to be concerned about this year and perhaps some forecasting as to what kinds of expenses we would see in the coming year in terms of prices of oil, energy, or other. He reported that generally speaking these meetings should take place much earlier in the
process than where we are today but thought we would have discussion around whether it seems appropriate to have one this year and if so in what kind of timeframe.
The Town Manager reported that there are a number of communities that do use this approach and referred to a power point presentation that the Town of Glastonbury uses. He added that a couple of other communities that he knows of that do it are Windsor and Manchester. He reported that it is a little late in the process because typically these communities do them just prior or after the Thanksgiving holiday. He reported that the idea with the meetings is that even before they really get into the budget preparation process at the staff level, they have a workshop which could be a tri-board workshop or in the case of the Town Council in Glastonbury it is noticed as a Town Council meeting and the Board of Education and Board of Finance would be listed on it but called to order by the Town Council and is
officially a Town Council meeting. He reported that the idea is to point out the big rocks, significant trends in the budgetary process, any significant legislative issues that we will be looking at such as the expiration of the increase in the conveyance tax on the horizon and the biggest concern of all is ECS funding. He reported that for the last two years now the State of Connecticut has basically been supplanting American Reinvestment and Recovery Act (ARRA) money to level fund ECS and supplanting the State contribution by approximately 14% a year or $420 million over the last two years that as we head into the fiscal year 2012 budget is gone and the question is whether or not the State is going to level fund or reduce ECS.
The Town Manager reported that it is an opportunity to look at the major expenditure categories and to give some projection on supplies, etc. He reported that as he said at the Board of Finance meeting it is setting the table as we head into the budget process. Chairman Zacchio reported that his only concern with it, while he thinks it is a good idea, is the lateness of the meeting in terms of the budget this year. He did not think any harm could be done in having the meeting but he would caution that it does not become a pre-budget hearing whereas we have the public engaged in what the budget should be or shouldn’t be in terms of comparing it to other years; it really is meant to be just a presentation by our professional staff as to what the economic indicators are in town. Mr. Evans
reported that after reviewing the power point presentation he tried to understand exactly how it works; we are right now developing our budgets and assumes the Board of Education is doing the same thing and the Board of Finance is starting to get their hands around general trends as they normally do as far as consumer price index, etc. He reported that some part of him thinks that having it earlier may be premature and creates false expectations about what the budget will look like eventually because you do not have all of the information. He reported that the things the Town Manager talks about as far as how the legislature will act as far as the revenue for the conveyance tax, they have to act to renew that every year so it is not new. He reported that he is in favor of tri-board meetings and greater communication between the three Boards so that we all know what the other is doing and we have candid dialogue on things that are important to the town yet
struggling to understand the dynamics of the whole thing.
Chairman Zacchio reported that he agreed that it is almost too early in November and too late now but what it does is in the spirit of the three Board meeting everyone hears the same information from a fact, economic indicator stand point at the same time. He reported that the idea in his mind as he got his hands around it is that you have it in the November timeframe and be for the Boards to collectively hear where the indicators are and begin to think about as they give direction to the professional staff in developing the budgets what their expectations might be and be able to collect post the meeting some feedback from the community around some rocks that we had hoped the budget would do this or that so that as representatives of those folks we are able to give good direction in the development of the budget. He reported that we are late in the process to do it this year because the Town Manager is already in the throws of developing a budget as is the Board of Education and
the Superintendent in terms of giving direction to their managers to get collective input. He reported that it is not as valuable now as it would be in the November timeframe but should go ahead and do it any time we can have some communication, an hour meeting, where the three Boards can get together. Mr. Evans questioned who leads that meeting. Chairman Zacchio responded that he envisions it being a Council meeting calling a three Board meeting where he would probably set the meeting up and hand it over to the Town Manager and/or whomever the Board of Education wishes to have do the presentation around what their economic indicators are. Mr. Shea reported that he would like to see it done just the way Chairman Zacchio described it; a presentation by the professionals. He reported that with a $73-$74 million looking or discussing the big rocks is healthy but there are still going to be many moving parts to the budget and transparency is good,
communication is good, working together is good, but his fear is that it becomes a pre-budget hearing and sometimes what is discussed or what is said may unintentionally set a table for conversations that are going to take place two or three months later that could change drastically due to whatever the federal government does, whatever the state government does, how our surplus investments react and the way the bond market reacts. He reported that the power point presentation example given is alright and needs to be tailored to the Town of Avon and how we do business in our culture but if we are going to discuss it all three Boards and the public and commissions need to understand how important our surplus is, what our outside agencies are saying to us about what the surplus should be and the pressures that are there; we are trying to balance competing interests, government is about choices and what we have to be cautious of is pre-maturely setting expectations or
pre-maturely identifying what we think choices will be. He reported that more of the responsibility is on the shoulders of the professionals, the Superintendent and the Town Manager, it should be in his opinion more of these are the facts as we know them today, these are the variables as we know them today, and these are the issues that we need to talk about over the next two to four months or be cognizant of. He reported that the idea is to get everybody in one room and talk about it and what we do not want it to become is any agenda pushing conversation and more of fact-based discussion about financial indicators that are relevant and extremely important to the Town, like Union contracts and surpluses.
Mr. Pena reported that it is a good idea to have the meeting as it is greater communication to the residents; the only problem could be the timeframe. There was discussion regarding a date for the meeting. Mr. Shea reported his recommendation to have it as part of a Council meeting. Chairman Zacchio responded that we could but the next Council meeting is February 3rd and the Board of Education budget is due to Town Council by February 15th. Mr. Evans questioned if this meeting is for each respective Board to present their budget. Chairman Zacchio responded no and that is what we want to stay away from, it is really a presentation from our professionals around the economic indicators in their purview. Mr. Evans agreed. Chairman Zacchio asked the Town Manager’s office to develop a date for the meeting, for an hour, two twenty-minute presentations and some time for questions. He added that in the future we would like to see it happen in November but we can have that discussion
before then. Council agreed. Mr. Pena reported that with regard to the economic indicators, some other items of interest when looking at the total budget would be the number of foreclosures in Town, bankruptcies, delinquency rate, vacancy of retail and office space – comparing years, and unemployment rate. Chairman Zacchio reported that we do want to make sure that it is on the agenda, published, and discussed that this is not budget meeting, it is an economic indicators meeting. Mrs. Samul responded that it would be normal to expect some misunderstanding on the part of the general public for the first of any kind of meeting and thinks that as we do this repeatedly the public will come to understand more and more what it is. The general consensus for a meeting date is Wednesday, January 26th. Mr. Pena reported that it might be perceived by the residents from what you call it.
10/11-29 Transfer of Appropriation to State & Federal Education Grants Fund,
$175,861
Chairman Zacchio reported that this is money that came to the Town through the ARRA Grant, was placed in the general fund and because of our year-end audit would like it separately in the ledger under that particular header of State and Federal Education Grants and not co-mingled in with the general fund. The Town Manager reported that the auditors would like us to take the funds out of the general fund and put them into the special revenue fund and the reason is that it is a federal/state grant revenue and easier accounting and shows up more clearly in the federal and state single audit act. Chairman Zacchio reported that this amount is budgeted in last fiscal year’s Board of Education budget. The Town Manager reported that it has no impact on fund balance.
On a motion made by Mr. Evans, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council favorably recommends to the Board of Finance a transfer of appropriation from General Fund, Intergovernmental, Equalized Cost Sharing (ECS), Account #01-0330-43341, and General Fund, Board of Education, General Service, Account #01-9401-52185, in the amount of $175,861 to State and Federal Education Grants, Intergovernmental, Equalized Cost Sharing (ECS), Account #13-0330-43341, and State and Federal Education Grants, Board of Education, ARRA Stabilization Gov. Serv. State, Account #13-9401-59202, in the amount of $175,861 for the purpose of accounting for the Federal SFSF funds under ARRA through the ECS entitlement per the recommendation of the auditors.
Mrs. Samul, Messrs: Zacchio, Shea, Evans, and Pena voted in favor.
10/11-30 Appointment: Avon Water Pollution Control Authority (12/31/2013)
On a motion made by Mr. Pena, seconded by Mr. Evans, it was voted:
RESOLVED: That the Town Council appoint Michael Farrell to the Avon Water Pollution Control Authority for a term to expire on December 31, 2014.
Mrs. Samul, Messrs: Zacchio, Shea, Evans, and Pena voted in favor.
10/11-31 Approval of Other Post Employment Benefits (OPEB) Trust and Investment
Policy Statement
The Town Manager reported that Peg Colligan and Chris Kachmar, Avon’s Pension Investment Advisor, were in attendance to discuss this item. He reported that it has been some time since this issue has been discussed. He reported that we have a plan for phasing in our OPEB contribution and approximately six to seven years ago we established a special revenue fund, the Post Retirement Employee Medical Benefit Reserve Fund, with a contribution of approximately $1.8 million and our plan is that over the next seven to eight years we are drawing down the balance in that special revenue fund at the rate of about $200,000 per year and at the same time increasing our contribution from the general fund so that at the conclusion of this period we are meeting our actuarially required contribution. He reported
that these two funding streams from the special revenue fund and the general fund are going to a trust fund. He reported that there are less stringent requirements on the trust fund and more flexibility with respect to what we can invest in and the Ad-Hoc Pension Advisory Committee has been working with Chris Kachmar and Peg Colligan to come up with a set of policies that reflect our philosophy with respect to the investments in that trust fund. He reported that the policy before Council has been approved by the Ad-Hoc Pension Advisory Committee and has also received legal review from Murtha Cullina and is on the agenda tonight to authorize the Town Manager to execute the policy.
Peg Colligan reported that this is the last piece of what we need to do for the OPEB Trust Fund; we have an investment policy statement for our pension benefit and an investment policy statement for the reserve fund in our special revenue funds and we do not have one yet in our OPEB Trust. She reported that the OPEB Trust was approved in June 2009, the first year that we were required to report as a result of GASB Statement 43 and 45 so this is the last piece that we need to do for our OPEB Trust.
Mr. Evans questioned the policy statement on the first page under the objectives it talks about a stated actuarial target and what that is. Mr. Kachmar responded that it would be a percentage return so the actuary does the demographic work, looks for an expectation from a return standpoint based on the underlying allocation strategy that is adopted; in the current allocation it is an actuarial expectation of approximately 6.5% annual return. Mr. Evans questioned that the money in the account represents money for which we are setting aside for employees of the Town once they retire. The Director of Finance responded that this is just healthcare. Mr. Evans questioned that the target is to maintain a certain percentage return sufficient to pay those actuarial expected amount of money. Mr. Evans
reported that other parts of the policy go over the selection of investment managers but he is trying to understand why we have to have these investment managers if you have already decided on the allocations and questioned the role of the investment advisor. Mr. Kachmar responded that the first objective in working with the Ad-Hoc Pension Advisory Committee and the Actuary is what is the basic investment strategy to be adopted through time as depicted on page 3 with respect to the target weights, an allocation strategy that equates to roughly 55% equities and 45% fixed income; once that is set now that begs the question of how we actually execute and implement that strategy.
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council approve to authorize the Town Manager to sign the Other Post Employment Benefits (OPEB) Trust Investment Policy Statement
Mrs. Samul, Messrs: Zacchio, Shea, Evans, and Pena voted in favor.
VIII. TOWN MANAGER’S REPORT/MISCELLANEOUS
Misc. A: Purchasing Update: The Town Manager reported there are ongoing purchasing activities and he would answer any questions that the Council might have.
Misc. B: GFOA Budget Award: The Town Manager reported that we have been advised that the Government Finance Officer’s Association has awarded Avon the distinguished budget presentation award. He reported that Peg Colligan is largely responsible for this award and has consistently been the recipient. The members of the Council added their compliments to Peg Colligan who was still in the audience.
Misc. C: Central Connecticut Solid Waste Authority: The Town Manager reported that Request for Qualifications Sub-Committee, which he is a member, has finalized an RFQ for Waste Disposal Services. The RFQ is now in circulation.
Misc. D: Green Efforts: The Assistant to the Town Manager reported the Clean Energy Commission has met their 2010 objective of purchasing 20% of the Town’s electricity from renewable resources as part of the 20% by 2010 Campaign. Their accomplishments were inventory of all Town Building, determine energy useage, develop a base line for the Town, relamping of the Schools and Town Hall, and a fleet management system. They will move ahead with the creation and implementation of a comprehensive Town Energy Plan, now that the Peregrine Energy Group is under contract as the Regional Energy Grant vendor, and the Committee will meet and begin working on the Town Energy Plane.
Misc. E: Elderly Tax Relief (Town Council Policy #17): The Town Manager reported the income limit for the local program was adjusted to $45,000 in 2010. Our program was designed to provide additional tax relief for those who qualify for the State program which is currently up to $39,500. The Assessor has indicated that the data used in 2010 is still valid. He further reported towns are able to provide additional optional property tax relief to seniors regardless of income, without state reimbursement.
Misc. F: Old Farms Road Projects: The Town Manager reported that he and Philip Schenck understand that the project manager for this project is under consideration for a promotion. In the event that occurs this project stands to possibly move ahead. He also reported on January 13th he will meet on site with Kenneth Larocque to work through some of our concerns.
The Council requested that in February they have a discussion regarding the use of surplus funds remaining in the capital budgets.
IX. EXECUTIVE SESSION: Litigation/Negotiation
A. Pending Claim/Litigation
On a motion made by Mr. Pena, seconded by Mr. Shea, it was voted:
RESOLVED: That the Town Council go into Executive Session at 8:45 p.m. for discussion of pending claim/litigation.
Mrs. Samul, Messrs: Zacchio, Shea, Pena, and Evans voted in favor.
The Town Manager, the Assistant to the Town Manager, Attorney Kevin Tighe, and the Clerk attended the session.
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council come out of Executive Session at 9:25 p.m.
Mrs. Samul, Messrs: Zacchio, Shea, Pena, and Evans voted in favor.
On a motion made by Mr. Evans, seconded by Mr. Shea, it was voted:
RESOLVED: To add an item to the agenda – 10/11-32 Settlement and Release regarding Greenwald v Town of Avon.
Mrs. Samul, Messrs: Evans, Pena, Shea, and Zacchio voted in favor.
10/11-32 Settlement and Release regarding Greenwald v Town of Avon
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council for the Town of Avon, Connecticut, does hereby authorize the Town Manager to execute a release in favor of the plaintiffs in the matter of Greenwald v Town of Avon in exchange for a release from the plaintiffs in favor of the Town of Avon.
Mrs. Samul, Messrs: Evans, Pena, Shea, and Zacchio voted in favor.
XI. ADJOURN
The meeting was adjourned at 9:30 p.m.
Attest:
Caroline B. LaMonica
Clerk
| 
