 |
TOWN OF SOUTH WINDSOR
TOWN COUNCIL WORK SESSION
COUNCIL CHAMBERS
SOUTH WINDSOR TOWN HALL TIME:
1. Call Meeting to Order
Mayor Aman called the meeting to order at
2. Roll Call
Members Present: Mayor William Aman
Deputy Mayor Matthew Streeter
Councillor Barbara Barbour
Councillor Paul Burnham
Councillor Thomas Delnicki
Councillor Deborah Fine
Councillor Lassman Fisher
Councillor Edward Havens
Councillor John Pelkey
Also Present: Town Manager Matthew B. Galligan
Town Attorney Barry Guliano
ITEM:
6. A. (Continued)
Councillor Lassman Fisher again stated that
Atty. Panico said that he felt this was correct
This being the case, Councillor Lassman Fisher said she was comforted by the fact that the Town was not just trying to seek an advantage from the corporation
Mayor Aman then asked to clarify his notes on what had been previously stated this evening: That under this sort of arrangement, (1) the Town would have a higher borrowing cost than it had done the same sort of project with General Obligation Bonds; (2) the Town would have to live with the terms of any long-term contract that was signed; (3) part of the cost of the project would be paid for by a
Mayor Aman then asked Atty. Panico if he had not understood the above correctly.
Town Manager Galligan replied that he felt the Mayor had understood the conditions correctly.
Deputy Mayor Streeter, stating that it appeared that the opinion was that the Town did not have to go to Referendum. However, he continued, the question was
ITEM:
6. A. (Continued)
The Deputy Mayor felt, however, that the project had merit; however, as mentioned previous, the question remained
Councillor Pelkey, referring to a previous untelevised meeting held on this subject in the Madden Room (on 11/26/01), and to this evening
Continuing, and reiterating what he felt were the facts, Councillor Pelkey said that the land at Evergreen Walk that was intended for this particularly facility will be coming to the Town by way of…….(he then asked the Town Manager to fill in the rest of the information.
Mr. Galligan said that the Town would have to negotiate a price for the land; and that is why he was suggesting that if the Town wished to move ahead with this project he saw it as a
Continuing, the Town Manager said there was a number
Mr. Galligan pointed out that if the Town was going to treat this as a
ITEM:
6. A. (Continued)
Pointing out that
Councillor Pelkey again stated that what was being talked about was the
Councillor Pelkey asked if, in the future, this venture were to become profitable, it would be possible to
Atty. Pacino said it was a possibility depending upon whether or not the agreement was structured so that the bond issue allowed such a thing. Generally, according to the attorney, the debt service on the bond gets paid first; and, then, below that certain reserves are maintained for repairs and replacement of the facility, insurance, and other additional capital items. After this, Atty. Pacino said, if there is money left over many times it can be structured so that the
Councillor Pelkey, referring to a possible 15-year lease for ECHN, asked if there was any way the Town could insure against
ITEM:
6. A. (Continued)
Town Manager Matthew Galligan then explained options contained in the Roosevelt/Cross proposal; and said that the Town had added to the proposal the bonding of one year
Saying that he felt there were many
Councillor Delnicki, to the Town Manager, asked for clarification that the Town would be leasing the facility from the Authority. Mr. Galligan again verified that the Town would make the lease payment to the Authority based upon the revenues derived from this project. He then elaborated.
When asked by Councillor Delnicki what the Town
Councillor Delnicki asked when the Town reaches the point where a lease payment, in essence, is acting like a general obligation on a bond, and requires the advice and consent of the public
Atty. Panico, saying there is no
Atty. Panico then said that the reason there are not considered general obligations is because they are subject to appropriation every year; and bondholders understand that risk with a lease.
ITEM:
6. A. (Continued)
Councillor Delnicki concluded by stating that it still left him uncomfortable not to hold a Referendum on an issue where this much money was involved.
Town Manager Galligan then reminded Councillor Delnicki that the Town has leased fire trucks, also; and these truck are not inexpensive. He noted that the one currently being looked at currently cost about $800,000 Mr. Galligan said that the Town Attorney had looked at this issue, and found that
Atty. Guliano, in response to a question previously posed by Councillor Delnicki, told him that he was right to question the
Councillor Fine asked if there would be any limitations on ECHN as to the activities they can conduct at this facility. Atty. Panico said that through the documentation the Town would execute with them under the lease, the Town could their activities
Continuing, Councillor Fine asked the Town Manager if he chose the option of running this facility with Department staff, could he do it with existing staff, or would he have to expand the staff; and if the latter, an approximately of how many. Mr. Galligan pointed out that contained in the proposal is a list of the staff that would need to be hired to run this type of facility. He elaborated.
Councillor Fine said that it sounded as though he was considering
ITEM:
6. A. (Continued)
Assuming there will be
Councillor Barbour asked the Town Manager if it is possible to move ahead with working with ECHN, and having a feasibility study done
Mr. Galligan estimated that somewhere between March and April the Town would start
As far as a Referendum is concerned, Mr. Galligan felt that if the residents voted it down, the Council would then have to make a decision regarding whether or not to go forward with this process. Even if approved by the voters through a Referendum, Mr. Galligan felt it would have to compete with many other issues and projects that will be coming up for Referendum
It was the Town Manager
Mr. Galligan said it was recommended that if the Town was going to do any type of
ITEM:
6. A. (Continued)
Councillor Barbour then asked that the Town Manager to
Mr. Galligan explained that the $19 million recreation plan
What would left, according to the Town Manager, would be to decide the means whereby the other $9 million can be financed over the next 10 years. Two suggestions would be to handle it through the
Mayor Aman asked if there was anyone in the audience who wished to come before Council to ask a question regarding this. There was no one.
Mayor Aman then pointed out that this subject has been discussed this evening for about two hours; and, in all probability, would require another Work Session to refine the issues after the
7. Executive Session - None
8. Adjournment
A Motion to adjourn was made by Councillor Burnham at 9:00 p.m., was seconded by Councillor Pelkey; and was approved, unanimously.
Respectfully submitted,
Patricia R. Brown
Clerk of the Council
| |
