THESE MINUTES ARE SUBJECT TO APPROVAL BY THE BOARD OF SELECTMEN
The Board of Selectmen held a budget deliberation meeting on Tuesday, January 27, 2009 in the meeting room at the Senior Center, 14 Riverside Road, Sandy Hook, CT. First Selectman Borst called the meeting to order at 7:38 p.m.
PRESENT: First Selectman Joseph Borst, Selectman Paul Mangiafico, Selectman Herbert Rosenthal.
ALSO PRESENT: Finance Director Robert Tait, Town Attorney David Grogins, Attorney Fran Pennarola, Fairfield Hills Authority Chair Bob Geckle, various department heads and three members of the press.
First Selectman Borst told the group that he and Bob Tait attended a meeting in Waterbury for the bid opening on the $5,385,000 general obligations bonds for submission 2009. Only six people bid with a low bid 2.27%, which is an excellent rate for ten year bonds.
Glen Mountain Holding, LLC:
Attorney Grogins explained that the two open issues relative to the lease at the last meeting have been agreed upon. The parking will be105 spaces and the lease will be paid at one lump sum.
Attorney Pennarola concurred with Attorney Grogins.
Bob Geckle stated that from a market point of view this is a fair deal for both parties. Mr. Geckle referred to a document from North American Realty (Att. A). This document reflects a feeling that this is a properly valued deal for both parties.
Al Roznicki, 169 Hanover Road, Newtown believes the Town would earn more money if it fixed the building and leased it. From a financial point of view decisions should be made in the best interest of the Town. Mr. Roznicki referred to his financial analysis (Att. B) in explaining his feeling that this lease doesn't appear profitable for Newtown.
Fred Baaf, Orchard Hill Road, Newtown believes the Town is acting out of desperation and urged the Board not to sign the lease.
Selectman Rosenthal read an email (Att. C) sent from Joe Hemingway, 10 Overlook Knoll, Sandy Hook. Mr. Hemingway thinks Attorney Grogins did an excellent job answering questions and agrees with Liz Stocker that this a positive move in the right direction. Selectman Rosenthal explained that if the town were to renovate a building and lease it for private purposes tax exempt municipal bonds cannot be used; money would be borrowed at commercial rates.
Selectman Rosenthal moved to approve the lease for Woodbury Hall as presented: Ground lease made and entered into by and between the Town of Newtown, a municipal corporation located in the County of Fairfield and Glen Mountain Holding Company, LLC, a Connecticut limited liability company, with an office located at 54 Vista Drive, Shelton. The lease is in the amount of $760,000. Selectman Mangiafico seconded for discussion.
Selectman Mangiafico inquired when the lease would be paid. Attorney Grogins answered the lease would be paid within five days of the mortgage closing on the property. Selectman Mangiafico stated he has serious misgivings about the project and thanked Mr. Roznicki for his analysis. Selectman Mangiafico believes the lessee received a good deal but thinks the Town will come out ahead. Selectman Rosenthal listened to and read questions from the public and is satisfied that all the questions have been answered. A private developer is not subject to prevailing wage laws but the Town would be, meaning the project would cost 20%-30% more for the Town. Selectman Rosenthal thanked Mr. Roznicki for his analysis. Selectman Rosenthal believes that both the lessee and the Town are entering a decent deal.
First Selectman Borst thanked Mr. Roznicki for his time and stated that he believes it would be a mistake for the Town to renovate the building in this economic climate and stated he is in favor of the lease.
The motion on the table was approved. All in favor.
Selectman Rosenthal thanked the Bob Geckle, Fairfield Hills Authority and David Grogins for all the hard work and wished good luck to Glen Mountain Holding Company.
2009/2010 Budget
Account 110 Social Services
Director of Social Services Ann Piccini was present.
Selectman Rosenthal moved Account 110 Social Services in the amount of $86,529. First Selectman Borst seconded. All in favor.
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Account 370 Newtown Health District
Director of Health Donna Culbert was present.
First Selectman Borst moved to Account 370 Newtown Health District in the amount of $281,630. Selectman Rosenthal seconded.
Selectman Rosenthal moved to AMEND Account 370 Newtown Health District in the amount of 257,932. First Selectman Borst seconded. All in favor
MAIN MOTION WAS AMENDED ($257,932) UNANIMOUSLY CARRIED.
Account 205 Technology
Selectman Rosenthal moved Account 205 Technology in the amount of $300,768. First Selectman Borst seconded.
The increase in the budget is because items in the selectman non-recurring are now itemized in the technology budget.
Selectman Mangiafico moved to AMEND Account 370 Technology by decreasing line 01205 1002 Technology Administration by $8,720. Selectman Rosenthal seconded for discussion. Selectman Rosenthal and Selectman Mangiafico believe any increase due to a position adjustment is not a budget item. This should be taken up with the First Selectman.
Motion passed 2-1, Mangiafico & Rosenthal YES, Borst NO
MAIN MOTION WAS AMENDED ($292,048) BY A 2 TO 1 VOTE.
Account 380 Visiting Nurses Association
First Selectman moved Account 380 Visiting Nurse Association in the amount of $500. Selectman Rosenthal seconded. All in favor.
Account 320 Fire
Fire Commissioner Kevin Cragin and Michael Burton were present.
Selectman Rosenthal moved Account 320 Fire in the amount of $1,300,196. Selectman Mangiafico seconded. Michael Burton explained a $31,000 increase is to replace a damaged fire suppression tank. There was discussion as to a possible lawsuit against the builder that installed the fire suppression tank. All in favor.
Account 330 Emergency Management/N.U.S.A.R.
Director of Health Donna Culbert and N.U.S.A.R Chief Mike McCarthy were present.
Selectman Mangiafico moved to AMEND Account 330 Emergency Management/N.U.S.A.R by decreasing line 01330 4060 Contractual Services by $5,000. First Selectman Borst seconded. All in favor.
MAIN MOTION WAS AMENDED ($44,813) UNANIMOUSLY CARRIED.
Account 400 Kevin’s Community Center
Selectman Mangiafico moved to AMEND Account 400 Kevin’s Community Center by decreasing the bottom line by $5,000. Selectman Rosenthal seconded. All in favor.
MAIN MOTION WAS AMENDED ($45,000) UNANIMOUSLY CARRIED.
Account 410 Children’s Adventure Center
Mae Schmidle was present.
Selectman Rosenthal moved Account 410 Children’s Adventure Center in the amount of $30,000. First Selectman Borst seconded. All in favor. Selectman Mangiafico asked First Selectman Borst if he felt he should’ve recused himself from this vote as his wife is on the Board of the Children’s Adventure Center. First Selectman Borst replied no.
Account 419 Regional Hospice
First Selectman Borst moved Account 419 Regional Hospice in the amount of $5,500. Selectman Mangiafico seconded. All in favor.
Account 420 Veterans Guidance Supplies
First Selectman Borst moved Account 420 Veterans Guidance Supplies in the amount of $250. Selectman Rosenthal seconded. Because there was no formal request or back up information on the budget request this item was tabled.
Account 425 NW Regional Mental Board
Selectman Rosenthal moved Account 425 NW Regional Mental Board in the amount of $2,947. First Selectman Borst seconded. All in favor.
Account 230 Town Hall Board of Managers
Marie Smith was present.
Selectman Rosenthal moved Account 230 Town Hall Board of Managers in the amount of $190,000. First Selectman Borst seconded. This item was tabled due to lack of information.
Account 428 Danbury Regional Child Advocacy Center
Selectman Rosenthal moved Account 428 Danbury Regional Child Advocacy Center in the amount of $2,750. First Selectman Borst seconded. All in favor.
Account 429 Women’s Center of Danbury
First Selectman Borst moved Account 429 Women’s Center of Danbury in the amount of $10,000. Selectman Rosenthal seconded.
Selectman Mangiafico moved to AMEND Account 429 Women’s Center of Danbury by decreasing the bottom line by $1,000. All in favor.
MAIN MOTION WAS AMENDED ($9,000) UNANIMOUSLY CARRIED
Account 431 Ability Beyond Disability
Selectman Rosenthal moved Account 431 Ability Beyond Disability in the amount of $4,500. Selectman Mangiafico seconded. All in favor.
Account 433 Newtown Youth & Family Services
Director Beth Agen was present.
Selectman Mangiafico moved Account 433 Newtown Youth & Family in the amount of $270,000. Beth Agen offered to increase health benefits to 34% and to reduce the budget request by 10%. Selectman Rosenthal moved to AMEND Account 433 Newtown Youth & Family Services by reducing line 01433 0000 Family Counseling Center $13,500. There will be a corresponding 5% increase to health insurance to 34%. Seconded by Selectman Mangiafico. All in favor.
MAIN MOTION WAS AMENDED ($256,500) UNANIMOUSLY CARRIED
Account 435 Amos House
First Selectman Borst moved Account 435 Amos House in the amount of $3,300. Selectman Rosenthal seconded. All in favor.
Account 436 Literary Volunteers
Selectman Rosenthal moved Account 436 Literacy Volunteers in the amount of $1,000. Selectman Mangiafico seconded. All in favor.
Account 438 Shelter of the Cross
Selectman Rosenthal moved Account 438 Shelter of the Cross in the amount of $2,500. First Selectman Borst seconded. All in favor.
Account 439 WeCAHR
Selectman Rosenthal moved Account 430 WeCAHR in the amount of $2,500.
Selectman Rosenthal moved to AMEND Account 430 WeCAHR by decreasing the bottom line by $1,500. All in favor.
Account 441 Volunteer Center
Selectman Rosenthal moved to AMEND Account 441 Volunteer Center by decreasing the bottom line by $500. Selectman Mangiafico seconded. All in favor.
MAIN MOTION WAS AMENDED ($1,000) UNANIMOUSLY CARRIED
Account 443 Parent Connection
Donna DeLuca, Joan Ponsky and Dorrie Carolan were present.
Selectman Rosenthal moved Account 442 Parent Connection in the amount of $25,000. Selectman Mangiafico seconded.
Selectman Mangiafico moved to AMEND Account 443 Parent Connection by decreasing the bottom line by $5,000. Selectman Rosenthal seconded. Motion passed 2-1 Rosenthal & Mangiafico YES, Borst NO.
MAIN MOTION WAS AMENDED ($20,000) BY A 2-1 VOTE
Account 670 Library
Judge Lavery, Peter Marshall and Martha Robilatti were present.
Selectman Rosenthal recused himself from this item as his wife is on the Board.
First Selectman Borst moved Account 670 Library in the amount of $1,038,192. Selectman Mangiafico seconded. Judge Lavery explained that the library has become busier in the recession but the income is going down. Selectman Mangiafico asked the Library to cut $80,000, suggesting salary increases and hours of business can be cut. First Selectman Borst moved to AMEND Account 670 Library by decreasing the bottom line by $30,239. Selectman Mangiafico seconded for discussion. First Selectman Borst said he believes an $80,000 reduction is unreasonable. Both in favor.
MAIN MOTION WAS AMENDED ($1,007,953). BORST & MANGIAFICO IN FAVOR.
Account 442 Newtown Parade Committee
Selectman Rosenthal moved Account 442 Newtown Parade Committee in the amount of $1,458. Selectman Mangiafico seconded. All in favor.
Account 444 NW Conservation District
Selectman Rosenthal moved Account 444 NW Conservation District in the amount of $500. Selectman Mangiafico seconded. All in favor.
Account 460 Building
This item was carried over from the budget deliberation meeting of January 21, 2009. Selectman Rosenthal moved to AMEND Account 460 Building by decreasing line 01460 1003 by $50,000. Selectman Mangiafico seconded. All in favor. Selectman Mangiafico noted this was because the building permits, in all three categories, are down considerably
MAIN MOTION WAS AMENDED ($256,447) UNANIMOUSLY CARRIED
ANNOUNCEMENTS: none
ADJOURNMENT:
Having no further business, the Board of Selectman adjourned their regular meeting at 12:23am. Budget deliberations will be finalized at the regularly scheduled Board of Selectmen meeting of February 2, 2009
Respectfully Submitted,
________________________
Susan Marcinek, Clerk
Att. A: North American Realty Memo
Att. B: A. Roznicki financial analysis
Att. C: J. Hemingway email
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