TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL TUESDAY, OCTOBER 4, 2010
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Pelkey called the meeting to order at 7:05 p.m.
2. Roll Call
Members Present: Mayor John Pelkey
Councillor Gary Bazzano
Councillor Tom Delnicki
Councillor Kathryn Hale
Councillor Kevin McCann
Councillor Cary Prague
Members Absent: Deputy Mayor Edward Havens
Councillor Janice Favreau
Councillor Keith Yagaloff
Also Present: Matthew Galligan, Town Manager
3. Public Participation
None
4. Communications
None
5. Town Manager’s Report
None
6. Items for Discussion
A. Trash and Recycling – CRRA versus CRCOG (Mike Gantick, Director of Public Works and Fred Shaw, Superintendent of Pollution Control to be present)
Councillor Delnicki informed the Council and public that he would be recusing himself from any discussion regarding CRRA because they are a service provider through MDC who he works for, but future discussions regarding CRCOG he will be involved in those conversations.
Mr. Galligan began discussions stating that the Town of South Windsor needs to make a decision whether the Town wishes to continue to participate with CRCOG on a regional effort for trash disposal or stay with CRRA. There will be a cost of $16,000 to continue the regionalization process with CRCOG to help with RFP costs but presently there are only twenty-one Towns that have signed up. There is a concern
ITEM:
6. A. (Continued)
that twenty-one towns will not be enough to take over CRRA or go out and find another area to get the best possible price for trash disposal. CRCOG would like a commitment from all Towns by October 13, 2010. CRRA is seeking for a commitment by July 1, 2011, but the contract does say 180 days after trash services are terminated. This issue is something that needs to be discussed more and Mr. Galligan felt that the Town of South Windsor should not jump into anything until it is known what other Towns will be doing.
Mr. Fred Shaw, Superintendent of Pollution Control explained that Central Connecticut Solid Waste Authority is a group working with CRCOG. As the Town Manager mentioned, presently both CRCOG and CRRA are looking for commitments from Towns because they are both out there looking for the best deal.
Answering questions from Council members, Mr. Galligan explained that there were seventy Towns originally who went to the mid-Connecticut project which gives CRRA strong purchasing power. The Town of South Windsor presently pays CRRA $690,000 per year for disposal which is based on South Windsor paying $69.00 per ton. This number could change if there are fewer Towns that participate with CRRA for their trash disposal.
Councillor Hale felt it would be best for the Town of South Windsor to wait to make a commitment to either CRRA or CRCOG to see what other Towns are going to do.
Mr. Shaw explained to the Council that if the Town does not commit to CRCOG, a South Windsor official may attend the meetings, but can not vote. The Town Council passed a resolution in June to participate in efforts with CRCOG. Part of that effort involves additional costs and in order to stay with the process the Town needs to commit to CRCOG by October 13, 2010.
Councillor Hale felt that the Town should check with other Towns to see what they are deciding to do with their trash disposal.
B. Connecticut Studios (Ralph Palumbo from DiGennaro & Palumbo and Tony DelVicaro from Acquisition Group to be present)
Mr. Galligan updated the Town Council regarding the Connecticut Studios project. He stated that the project is moving forward and feels it is in good shape. Robinson & Cole will be putting together a program and a strategy on what the Council needs to do regarding TIF financing and there are other necessary steps that will need to be taken.
The Town Council decided to go to the Town Manager’s Report prior to hearing from Mr. Palumbo and Mr. DelVicaro.
ITEM:
5. Town Manager’s Report
The Town Manager reported on the following items:
- The Town was successful in obtaining a $200,000 Small Town Economic Assistance Program Grant to start renovation work on the inside of the Police Department. This will help to renovate the ambulance bay area when the Corps moves over to the new facility.
- The Town received a $350,000 grant from the Federal Government for upgrading the Communications System. This will be in conjunction with the renovations over at the Police Department.
- The Town Attorney prepared the Explanatory Text for the upcoming Referendum. This has been reviewed by the State Elections Enforcement Commission and had been approved for dissemination into the Community. The Town Clerk also has copies of the Explanatory Text. This project was done in-house which saved the Town money.
- Councillor Yagaloff requested that the revenue stream for the Town be reviewed to see if a spending freeze should be implemented. There is a concern as to whether the Town is going to make the revenue projection. Mr. Galligan stated he would be reporting this information to the Council at the next meeting.
- The Town Attorney has been reviewing a contract with ADP concerning outsourcing some the Human Resource work load. Ms. Judy Hall will be retiring and this new system could save the Town some money.
6. B. (Continued)
Mr. Ralph Palumbo came before the Town Council to seek support and permission to announce the groundbreaking for Connecticut Studios. This project has been worked on very hard and has had tremendous support from the Town of South Windsor, the community and the State of Connecticut. The date of the groundbreaking would be Monday, October 18, 2010 at 2:00 p.m. This has been coordinated with the State, Town and partners.
Mayor Pelkey stated that given the magnitude, complexity and economic times of this project the process has gone quite fast. The project was done carefully and correctly with the Towns’ financial interest foremost in the minds of all involved on the Town Council. Connecticut Studios has diligently explored every facet of the credit and bond market as well as many government programs to determine just the right mix to underwrite the cost of this project. The Town Council and the professional staff, both current and past, have worked very hard to make sure every reasonable question was answered and every possible exposure to the Town is safe guarded. Mayor Pelkey went on to explain some of the financial aspects of this project.
Councillor Hale stated that she fully supports this project and feels it will be a great benefit to the Town. South Windsor has zero dollars invested in this project and after the bond is paid, South Windsor will get 100% of taxes from the Connecticut Studios.
ITEM:
At 8:00 p.m. the Work Session was recessed in order to call the Regular Meeting to order. The Work Session reconvened at 8:02 p.m.
6. B. (Continued)
Answering questions from the Council, Mr. Palumbo explained that building will begin the first half of the first quarter of next year.
The Town Council then briefly discussed TIF financing and Mr. Galligan informed the Council and public that at the next meeting TIF financing and the whole project will be discussed at length. Mr. Galligan also explained that even if Connecticut Studios was not going to be at this site, it was necessary for the Town to spend funds to get this site project ready. Mr. Galligan then answered further questions explaining that the contract states that if nothing is built within a 3 year period, the property comes back to the Town. Most of the land that the Town has given for this project is being used for infrastructure and the TIF financing will support public improvements which the Town will always have.
Councillor McCann stated that there is no guarantee that the State of Connecticut will continue to give tax credits. If tax credits fail where would the money come from? Mr. Palumbo stated that he believes the State is committed and everyone involved has tried to mitigate any risk.
Councillor McCann then stated that he has asked for an economic impact for phase I of just the studios. Mr. Galligan stated that the economic impact is being prepared now.
Answering questions from the Council, Mr. Palumbo stated that the $33,000,000.00 is for the entire project and will not change significantly. Mr. Galligan explained that the TIF bond agreement will be coming to the Town Council for review.
Council members then discussed if the property starts going into default the bank will keep paying taxes until a solution is found. Infrastructure will always be the Towns and will be protected.
Mayor Pelkey stated that he has confidence in this project which will be creating jobs for individuals at the studio. The businesses around the Town will also benefit from this project and the sewers and roads will be improved with this project.
Senator LeBeau came forward to speak regarding this project. The project has been moving quite rapidly considering the problems with the economy. Senator LeBeau congratulated everyone involved with the project. This will be a benefit to the taxpayers of South Windsor and will create jobs in the State. The Connecticut Studios project is the most significant economic development projects being revealed in the State of Connecticut. The commitment of the State is solid in this project.
ITEM:
7. Executive Session
None
8. Adjournment
At 8:55 p.m. the Work Session was adjourned.
Respectfully submitted,
Deborah W. Reid, Recording Secretary
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