TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL MONDAY, MARCH 7, 2011
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Pelkey called the meeting to order at 7:01 p.m.
2. Roll Call
Members Present: Mayor John Pelkey
Deputy Mayor Ed Havens
Councillor Saud M. Anwar
Councillor Gary Bazzano
Councillor Tom Delnicki
Councillor Janice Favreau
Councillor Kevin McCann (arrived at 7:27 p.m.)
Councillor Cary Prague
Councillor Keith Yagaloff (arrived at 7:02 p.m.)
Also Present: Town Manager, Matthew B. Galligan
3. Public Participation
Mr. Don Gonsalves, 40 Bayberry Trail came before the Town Council to request the status of the current fund balance and how much was added back from the Town and the Board of Education.
Ms. Cindy Beaulieu, 19 Cody Circle stated to the Town Council that she is concerned about moving forward with approving a Special Services District. The Town needs to get the feasibility study on the project still in order to understand if Connecticut Studios is a viable project.
Mr. Wayne Kilburn, 291 Smith Street came forward and stated that the original purpose of the Special Services District was to collect additional taxes from the developer to pay off the TIF bonds. The Ordinance has changed significantly and Mr. Kilburn felt that the Ordinance should return to the original purpose.
4. Communications
None
5. Town Manager’s Report
None
ITEM:
6. Items for Discussion
A. Continuation from the February 22, 2011 Public Hearing regarding an Ordinance Establishing “The Connecticut Studios Project Special Services District”
Mr. Galligan began discussions by explaining he had spoken to Attorney David Panico and there are additional documents that are being created which need to be reviewed by the developers Attorney as well as the Town Attorney. Attorney Panico requested that the Ordinance be acted on at the March 21, 2011 meeting and he would be available to discuss it in more detail at that time. Mr. Galligan explained that he does not feel there is any harm in establishing the Special Services District because even if the Connecticut Studios does not go forward, the district will help to develop the land if someone else comes into develop this property.
Mr. Galligan then discussed the difference between public easements and private easements.
Mayor Pelkey stated that the Connecticut Studios project is changing all the time. After the feasibility study is complete it will be known whether this project will move forward or not.
Answering questions from the Council, Mr. Galligan explained that the Town does not pay for the feasibility study which costs approximately $26,000 to $30,000. If the feasibility study comes in positive, this project could go forward at a rapid pace. A critical time line was established which shows by the end of April the bonds being closed, but there is preliminary work that needs to be done on the site which can be done without building permits.
Councillor Yagaloff questioned if the Town is going to own the road going into the Connecticut Studios and the parking lots outright and allow the developer to have easements to use Town property or is the Town going to give up the property to the developer and have the Town have easements to use the roads and parking lots? If the Town owns the land and gave the developer easements, that would be the amount that is currently in the TIF bonds. Mr. Galligan explained that an appraisal is needed in order to negotiate the ownership of the easements. Mr. Galligan pointed out to the Council that if the road is made into a Town owned road, then the setbacks will have to be changed under zoning which could hurt the hotel development. The other reason Mr. Galligan stated he would prefer easements is that then
the Town would not be responsible for the maintenance of the road, that would be part of the Special Services District and the developer would be responsible for the maintenance of that road.
ITEM:
6. A. (Continued)
Councillor Yagaloff voiced his concern of the Town having easements versus ownership because if the property went into foreclosure or bankruptcy, the Town would not be able to utilize that road until a Judge in the Superior Court or Bankruptcy Courts says the Town is allowed access to use the road. Mr. Galligan responded that he would have Attorney Panico address this issue further for the Council.
Answering questions from the Council, Mr. Galligan explained that the Town would not have access to the developer’s personal financials that were given to the bank, but will have access to their finances when it comes to the feasibility study. The feasibility study will give all of the developer’s background information which will help the underwriters make a decision on whether this is a viable project. The Council should go forward and make a decision regarding the Special Services District. The project will not move forward until the feasibility study is complete and the underwriters say the deal can be done. The Special Services District Ordinance can be amended if this project does not go forward and another project ends up on this site. There have been no building permits
taken out for this project. The Building Official can issue a permit to the developer’s so they can level out the ground and surcharge the property prior to building permits being taken out. To date, the developer has spent funds on the Planning & Zoning Commission as well as the Inland Wetlands Agency/Conservation Commission. The developers also have spent money towards the plans, design and bids for the proposed buildings.
Mayor Pelkey added that although no building permits have been issued, the developer has invested a lot of time and money towards this project.
Councillor McCann stated that he feels important issues for the Town Council to resolve at this time are the public improvements; the Special Service District Ordinance which needs to have the concerns that Council members brought forward inserted into it; and the Ordinance should be brought back to the basics and have all the new provisions taken out.
No one from the public came forward to comment on the Special Services Tax District.
B. Update of the current budget, (requested by Town Manager, Matthew B. Galligan)
Mr. Galligan review three handouts with the Council (Fiscal year 2011 Projections, Actual Revenues Collected Through February 28, 2011 and Projected Revenues Through June 30, 2011; and Public Works Winter Storm Maintenance Budget
ITEM:
6. B. (Continued)
Summary), all of which are attached Exhibit A, B & C. Mr. Galligan stated that there is a revenue shortfall of approximately $507,379 which is mostly due to the budgeted building permits because of the anticipated revenue from Connecticut Studios. The fund balance is currently at $5,600,000 which Moody’s and Standard & Poor’s felt to be very encouraging. There is approximately $300,000 to $400,000 of tax sale items that have to go out to bid.
At 8:01 p.m. Mayor Pelkey recessed the Work Session in order to call the Regular Meeting to order. The Work Session reconvened at 8:12 p.m.
Mr. Galligan brought to the Council’s attention one more memo regarding Energy Supplier Pricing, attached Exhibit D. This memo will inform the Council on what the Town is charged for energy.
Answering questions from the Council, Mr. Galligan explained that the sale of the old fire truck of $75,000 is not accounted for in the budget revenues because it is not sold yet and also in the past the Town Council has given those funds back to the Fire Department. Mr. Galligan then explained that the Town has had discussions with C L & P to try to put the Town as an industrial user, but C L & P has declined that request. Currently the Town is charged different rates for each building and different rates for the lighting of each ball field. The Town is looking at solar panels presently.
Councillor Prague questioned if the Town has a roof that would hold enough solar panels that would actually produce enough electricity to power the usage of a building? Mr. Galligan gave two examples of different roofs that would be able to have solar panels which are the High School and Timothy Edwards. The solar panels would probably not be able to produce enough electricity but would lower the cost. The Town is also looking at using some of the flow of water as a turbine to bring back the electricity into the sewer plant.
Councillor Bazzano requested a breakdown of items from the different departments. Mr. Galligan explained that these items are being reviewed because some of the bills were charged to an account that should have been covered by a grant.
Answering further questions, Mr. Galligan stated that the revenue short fall and expenses are made up of a $669,000 shortfall. There is $483,000 available in Capital and Non-Recurring that could be applied to that shortfall with a resolution through the Council.
Councillor Yagaloff requested that the Town discuss with the Board of Education if they are anticipating the Town to contribute to their budget with the under expenditures from this past year. The other issue that should be discussed is the $765,000 federal money that was due to them last year that they did not receive.
ITEM:
6. B. (Continued)
Councillor Prague stated that the issue regarding the surplus was brought up at the last meeting of the Board of Education and it was agreed upon that the Board of Education would not be looking for any of the surplus to be given back to them from last year. Councillor Prague then questioned if the Town would be receiving any reimbursement on the $120,000 for the big storm which President Obama declared as a disaster area? Mr. Galligan explained that they are coming out to do their survey and hopefully the Town will be successful in being reimbursed.
Councillor McCann stated that the Town Council knew this year was going to be tough financially and the update to the budget shows that this is correct. The revenues are down and the expenditures are up. The Town Manager instituted a spending freeze on non-essential services and expenditures of the Town which was a good decision.
Answering questions, Mr. Galligan explained that for the generation portion the Town uses TransCanada which is set at $9.25. The Town goes through CCM for the generation portion. CCM went out to bid for services and at that time TransCanada came in as the lowest bid. The Town is researching options.
7. Executive Session
None
8. Adjournment
At 8:29 p.m. Councillor Delnicki made a motion to adjourn the Work Session. Councillor Prague seconded the motion; and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Recording Secretary
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