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Chairperson Janice Snyder called the meeting to order at 4:37 p.m.
Members Present
Chris Chemerka, Director of Finance and Operations, Board of Education
Matthew Galligan, Town Manager
Michael Gantick, Director of Public Works
Patrick Hankard, Director of Facility Services, Board of Education
David Joy, Board of Education
Elizabeth Pendleton, Town Council
Janice Snyder, Town Council (Chairperson)
Members Absent
Dr. Saud Anwar, Town Council
Dr. Kate Carter, Superintendent of Schools, Board of Education
Carol Driscoll, Board of Education (Vice Chairperson)
Lisa Maneeley, Board of Education
Guests Present
Jeffrey Doolittle, Town Engineer
Raymond Favreau, Director of Parks and Recreation
Walter Summers, Fire Marshal
3. Approval of Minutes Previous Meetings
Town Manager Matthew Galligan made a motion to approve the April 30, 2014 Minutes; Mr. David Joy seconded that motion; and it was approved unanimously.
4. Discussion Items
List of Capital Projects for Final Review
Chairperson Janice Snyder said that the school’s $58,300 needed to be removed from the Revised Project List (Exhibit A). The projects listed as priority 100 should be kept as the Committee and staff had mutually agreed they were necessary.
Mr. David Joy made a motion to adopt the $995,000 presented in the TOSW FY 14/15 column in Exhibit A; Mr. Patrick Hankard seconded the motion.
Town Manager Galligan said he was not sure if the Town Council would use any LoCIP funds (mentioned in Mr. Jeffrey Doolittle’s memorandum, Exhibit B) for Capital Projects because they are more focused on the possible Emergency Operations Center. He suggested that the Council should add $1 million to the Capital Improvements Budget each year.
Chairperson Snyder asked about the pool projects. Mr. Jeffrey Doolittle said the two pool projects were taken out of the 2014/2015 Capital Improvements Budget. They could be put in the budget for 2015/2016 or could be funded by other mechanisms. Chairperson Snyder expressed concern about removing those projects from the 2014/2015 Budget. Mr. Joy said that the trade-off is maximizing grant opportunities for some more expensive projects, and the pool projects probably do not meet the threshold for Capital Projects. Town Manager Galligan said that is why those projects were removed from the list. Chairperson Snyder asked if the pool projects are being funded through the 2014/2015 Parks and Recreation Operating Budget. Mr. Raymond Favreau said that is correct.
Chairperson Snyder asked Town Manager Galligan about the fiber communications projects. Town Manager Galligan said the Town received a grant for $22,000 for that project. Mr. Walter Summers asked if the cost should be carried over to 2015/2016 because it is marked as “Phase 1 of 3”. Town Manager Galligan said this would just start the project, and the Town will get a handle on additional extensions when the project is revisited. The plan is to eventually get most of the important Town and Board of Education buildings connected in the network.
The sidewalk project would be started in 2015/2016, and Mr. Doolittle said that the project could be started earlier if the Town Council approved the use of some LoCIP funds.
Mr. Doolittle said that the boiler project could also use some LoCIP funds as coverage. However, that depends on Council approval, and this project cannot be split between two fiscal years. It needs to go forward as one whole piece. Mr. Michael Gantick said the Town boiler should probably be shut down, but he is trying to get a revised quote from Yankee Gas. He passed around photos of the current boiler (Exhibit C).
Chairperson Snyder asked who determines the use of LoCIP funds. Town Manager Galligan said the Town Council determines the use of the funds. A public hearing needs to be held on a submitted project, and then the Town Council has to vote on a resolution which is sent to the State for final approval. Mr. Doolittle has said that in the past, if the projects are part of the Capital Improvements Plan for the Town and gets passed as part of the budget, the State accepts that as having met the criteria. Mr. Joy asked what LoCIP stands for. Town Manager Galligan said LoCIP stands for Local Capital Improvements Program. It is bonded by the State, and each Town is determined a certain amount of funding by a formula. Money is appropriated by the Governor’s Office each year into this fund. It is
an allocated amount based upon population, and there is no competition between towns. Mr. Joy asked if $270,000 is a significant amount. Town Manager Galligan said that is the total amount of funds allocated to the Town.
Councilor Pendleton asked if there was any way to change the Town’s contribution to projects that have grants available. Town Manager Galligan said the Buckland Sidewalks project numbers are based upon architectural drawings that have been submitted to the State. If any money is taken away from the project, the grant would most likely be reduced as well. Mr. Doolittle said it varies by project, but many of them are based on percentages.
Chairperson Snyder asked for a vote on the motion. It was approved unanimously.
Chairperson Snyder suggested that Town staff should take the project forms for approved projects, attach a cover memo, and present them to the Town Council. Councilor Pendleton asked if the Town Council would receive reports as projects are moving forward. Town Manager Galligan said staff can provide monthly reports and post the projects on the website. Mr. Gantick asked for clarification on asking for LoCIP funds for the Town Council. Town Manager Galligan said that the Committee would have to move forward with the request in order to partially fund some of the approved projects. Each project would be a separate public hearing and resolution.
Funding Stream
This discussion item was combined with the following discussion item.
Draft Resolution for Permanently Funding Capital Projects
Town Manager Galligan discussed the Draft Capital Improvements Funding Ordinance (Exhibit D). The Town Attorney has reviewed this draft ordinance, and he determined this mechanism could be created as an ordinance or a policy. If it is a policy, the Town Council still has an obligation to follow that policy. Town Manager Galligan explained the draft Capital Improvements budget calendar and the funding mechanisms present in the draft ordinance. The proposed budget schedule would start discussions about the Capital Improvements Budget much earlier in the year. The goal is to build up the Capital Improvements Budget and prevent the Budget from taking tremendous cuts. Taking away the Capital Improvements Budget puts pressure on operating budgets. Town Manager Galligan said that some of the wording
in the draft ordinance was taken from the Capital Improvement Policy.
Mr. Joy asked if the entire text from Exhibit B would be the text of the proposed ordinance. Town Manager Galligan said that is correct. If it were proposed as a policy, only the procedure for setting the Capital Improvements Budget would be in the policy. Mr. Joy said that he heard a former Councilor say that to adopt an ordinance to govern the behavior of the Town Council is not the appropriate use of an ordinance. Town Manager Galligan said he would disagree because there is an ordinance for the Town’s health fund which dictates what can and cannot be done with that fund. Some towns create financial policy ordinances so that they become law. These ordinances do not bind future Councils, but any changes made to the ordinance need to have a public hearing. An ordinance is needed when
Councils do not follow policy.
Mr. Joy asked if Town Manager Galligan had a recommendation. Town Manager Galligan recommended proposing the draft ordinance to the Town Council. If the Council says no, then the Committee can work the ordinance into a policy. Starting a dialogue is currently the most important step. Mr. Joy asked if the Committee would have a position or recommendation. Town Manager Galligan said that would be up to the Committee.
Mr. Joy asked Chairperson Snyder about her thoughts. Chairperson Snyder said she would like to bring the recommendation of the Committee to the Town Council.
Mr. Joy cautioned the Committee to “be careful what you wish for”. If the Town Council adopts this ordinance, there are repercussions for not following the ordinance, such as residents challenging the Council. If it is adopted as policy, then repercussions are felt more with ratings agencies. Mr. Joy said he felt the Committee is trying to promote the idea of better stewardship rather than being legislative. He would like to hear the Town Council discuss policy versus ordinance.
Councilor Pendleton said she would like to create an ordinance since taking money away from Capital Projects has resulted in some detrimental effects to the Town, such as the Old Post Office Building. She would like to see guaranteed funding Capital Projects in the future. The Town Council has to answer to the citizens, and they should provide safe infrastructure for the community. She is afraid a policy is not strong enough to protect funding, and an ordinance would help with responsible stewardship.
Mr. Gantick said that despite having plans and policies in place since 1998, there is still a daunting backlog of Capital Projects that the Town needs to complete. He feels that there should be a different attempt at funding.
Mr. Patrick Hankard said that the issue is not worthy of significant discussion because the language used in the draft ordinance to not bind future Councils is weak. He leaned towards an ordinance.
Ms. Chris Chemerka said that her hometown has capital funding written into their Charter. There is no discussion about the amount, as it is decided by the Charter. If a policy could work with the Town Council, that would be great. However, if a policy turns out to be too weak, she would like to see an ordinance created.
Mr. Joy said he is still ambivalent, but he would support any decision from the Committee. He agrees with Mr. Hankard that the wording is toothless. He looks forward to hearing the Town Council’s discussion. Good stewardship should not be legislated.
Town Manager Galligan said that he created this draft ordinance after going through eighteen years of frustration. The Public Works building and new Public Library were both completely funded through the Capital Improvements Fund with no bonding needed. The Old Post Office renovations were supposed to follow the same formula, but funding kept being cut from Capital Improvements. He agreed with Mr. Joy about legislating stewardship, but it is worth a discussion with the Town Council. He discussed Glastonbury’s $8 million Capital Improvements Fund and the absence of tax spikes. South Windsor has approximately $500-600 million in assets, but the Capital Improvements Budget is miniscule.
Councilor Pendleton asked if 2% was a permanent number. Town Manager Galligan said 2% is a guideline even for an ordinance because future Councils cannot be bound.
Mr. Joy asked for clarification in Exhibit B regarding financing capital projects with a shorter life span. Town Manager Galligan said that anything with a short useful life will most likely not be bonded. Mr. Joy asked if the wording could be changed. Town Manager Galligan said the wording in “Pay As You Go” could be changed.
Chairperson Snyder said it is the Committee’s position to move forward with the draft ordinance as an ordinance. The Committee agreed.
5. New Business
Chairperson Snyder said the Town Council is currently discussing a bond for road projects (Exhibits E and F). Town Manager Galligan said the Council wants to know the effect either a $10 million or $15 million bond would have on taxes. Another concern is the school referendum that would need to be incorporated. If the Town Council can determine a number and which road projects need to be completed, Town Manager Galligan can make calculations on the debt.
Councilor Pendleton said that the removal of the old Orchard Hill School is not part of the school referendum, and it will cost money. She asked where the money is budgeted. Town Manager Galligan said it would have to be put into the operating budget or similar place. It is not eligible for reimbursement. The total amount has been approved. Mr. Joy clarified that the school will not be returned until the end of Phase III. It will be used as swing space, and it will be the Council’s determination when the Board hands the school over. If the Town decides to demolish it, the cost can be planned. Town Manager Galligan said he could ask the bond counsel if some of the extra bond money could be held in a capital account for the purpose of demolishing the old school in the future. Mr.
Joy asked if it is part of the cost estimates. Town Manager Galligan said it is not included. Councilor Pendleton asked what would happen with the money if the Town decides not to demolish the school. Town Manager Galligan said the money would reduce debt service.
Mr. Joy said he watched the Town Council meeting that was held on Monday, June 2, 2014. He asked what relationship that the discussion held during that meeting has with the Capital Projects Committee. Town Manager Galligan said that this Committee has to decide on the projects that will be a part of the proposed bond. Chairperson Snyder said she hoped the Committee would be the central repository for all projects that may be suggested or brought forward from the Town’s side. The Committee would review those projects and prioritize them. Many projects should be listed because there may be projects that end up not being done or receive reimbursement. Updates should also be given about the projects.
Mr. Joy said the discussion seemed specific about road projects. He asked if the projects would be chosen from the Planimetrics report. Town Manager Galligan said Mr. Gantick keeps a list of priority roads, and most of the roads would come from that report. Mr. Gantick passed out a Pavement Management Update (Exhibit G).
Mr. Joy said it is easy to calculate outstanding payments on bonds for specific projects. When refunding is done, or there are general purpose bonds, it is difficult to determine outstanding debts for specific projects. He thinks it would be useful to this Committee, Council, and the residents to have more understanding about what is still outstanding. Mr. Joy asked if the current road bond has been used up. Mr. Gantick said there are still some projects that are going out to bid. Mr. Joy said there should be more thinking and less of a knee-jerk reaction to road improvements.
Mr. Gantick said that there has hardly been any money appropriated to road maintenance in the past eight years. The Avery Heights project was cut out of the Capital Projects list five years ago, and that is a project being considered for this proposed road improvements bond.
Mr. Joy asked what would happen with other roads in Town once $5 million is allocated to Avery Heights. Mr. Doolittle explained that road resurfacing spends money quickly. Complete reconstruction takes longer because the projects have to be designed and go out to bid before construction starts. The best solution is to do a balanced combination of resurfacing and reconstruction throughout Town on roads where it is appropriate.
Mr. Gantick said the Town’s main roads are in good shape, but the Town’s Pavement Condition Index (PCI) is low because the local roads need to be fixed.
Mr. Summers asked if the Town Council discussed Town infrastructure, especially in buildings. There are many projects that need to be completed in Town buildings that have been taken off the Capital Projects lists throughout the years. Chairperson Snyder said only roads were discussed during the Town Council meeting. Town Manager Galligan said the proposed funding stream is supposed to fund some of the building infrastructure. Mr. Summers asked if the bond was approved, would the Revised Project List be adjusted. Town Manager Galligan said it would be adjusted if any of the approved road projects are covered by the bond. Mr. Summers asked if parking lot projects would be included in the road improvements bond. Chairperson Snyder said it would be difficult to get those projects in there
because the bond is specifically for roads.
Mr. Gantick said that the State has passed legislation where any road improvements have to include bikeways and pedestrian ramps in the plans.
Councilor Pendleton asked who oversees the current road improvement projects because there is no reporting on the projects. Mr. Gantick said there are updates on the website. Town Manager Galligan said updates have been brought to the Capital Projects Committee when they are requested.
Councilor Pendleton said it would be unfortunate to have a $15 million bond and not be able to address projects that pertain to safety and infrastructure. She asked if the projects would be monitored and reported if the bond is obtained. Mr. Gantick said everything would be posted on the website. Chairperson Snyder said the Committee can ask for monthly reports. Town Manager Galligan said posting updates on the website is very helpful for residents.
Chairperson Snyder clarified that the Town Council brought up the idea of a bond. The idea came from Mayor Saud Anwar and Councilor Cary Prague.
Mr. Doolittle asked when the Town Council will decide on the bond. Town Manager Galligan said the Town Council needs the information soon so they can vote on a resolution in September for a referendum in the November election.
Town Manager Galligan asked the Committee to be prepared to create a list for the possible road improvements bond. He also told Mr. Hankard to prepare a list of projects for the Board of Education for the Committee to review for Fiscal Year 2015-2016. He asked Mr. Doolittle for a monthly report on the current road projects.
6. Old Business
None
7. Adjournment
A motion to adjourn was made by Town Manager Matthew Galligan at 6:00 p.m.; the motion was seconded by Councilor Elizabeth Pendleton; and all were in favor.
Respectfully submitted,
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Ashley Summers
Recording Secretary
Exhibit A Revised Project List 5-14-2014
Exhibit B Memorandum from Jeffrey Doolittle
Exhibit C Boiler Photos
Exhibit D Draft Capital Improvements Funding Ordinance
Exhibit E $10.0M – Various Road Projects
Exhibit F $15.0M – Various Road Projects
Exhibit G Pavement Management Update
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