TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL MONDAY, NOVEMBER 19, 2012
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Delnicki called the meeting to order at 7:00 p.m.
2. Roll Call
Members Present: Mayor Thomas Delnicki
Deputy Mayor Gary Bazzano
Councillor M. Saud Anwar
Councillor Cindy Beaulieu
Councillor Ed Havens
Councillor Kevin McCann
Councillor Cary Prague
Councillor Janice Snyder
Councillor Keith Yagaloff
Also Present: Matthew B. Galligan, Town Manager
Dwight Johnson, Town Attorney
Keri Olson, Town Attorney
3. Public Participation
Ms. Anna Mae Davis, 9 Ridge Road came before the Council and requested an answer regarding the two drains that are supposed to be installed on Ridge Road and also would like to know how the figures for the reassessment of her property were arrived at. There is a large gap compared to neighbors.
Mr. Jack Phillips, 200 McGrath Road came forward to speak in opposition to the Town building a new Recreation Center/Hockey Rink. The South Windsor residents have said they do not want a new Recreation Center in Town.
Ms. Kathy Hale, 54 Orchard Hill Drive stated that she feels a skating rink is an unnecessary project at this time and could be supported privately. The reason to do private/public partnerships is to create jobs and this will not create enough jobs. This project would also drive out an existing business in Town.
Mr. Robert O’Connor, 126 Krawski Drive came forward to speak in favor of a 63-20 Corporation as well as a Recreation Center. This project would support the whole community and the current Community Center could be used just for a Senior Center.
Mr. Craig Zimmerman, 5A Amato Drive stated he is in support of a Recreation Center. South Windsor is the only Town its size that does not have a pool and there is a need for more basketball courts as well as a full size gym. This project will also benefit the Seniors. Mr. Zimmerman then stated that Evergreen Walk is the biggest taxpayer in Town and this project will help that development as well.
ITEM:
3. Public Participation (Continued)
Mr. Don Gonsalves, 40 Bayberry Trail felt that this Recreation Center should go to referendum. Mr. Gonsalves then requested that the public be allowed to speak after Item 6. A. Items for Discussion - 63-20 Corporation.
Mr. John Bassilakis, 220 Laurel Street felt that a 63-20 Corporation is not ethical. A 63-20 Corporation should not be used for the Recreation Center/Hockey Rink, this project could be done privately. Mr. Bassilakis also stated that the Town should develop Lawrence Road Park.
Mr. Matt Riley, 12 Heatherwood Drive came forward to speak in favor of a Recreation Center/Hockey Rink. The Town Council should educate the public on the difference between bonding a project and having a 63-20 issue bonds.
Mr. Mike Sullivan, 24 Jared Court questioned where the Town’s priorities are when there are elementary schools that need work. Mr. Sullivan stated he would like to hear each Councillor’s opinion whether a 63-20 Corporation is a good option or not.
Mr. Al Larson, 46 Jacques Lane and a member of the Park & Recreation Commission came forward to speak regarding the Recreation Center. Mr. Larson stated that the Hockey Rink received a lot of press but the rest of the project has not been addressed. South Windsor is the only Town of our size that does not have an indoor pool. South Windsor is very competitive in swimming and would benefit from a pool in Town. A 63-20 Corporation is a legal vehicle that has been used for a variety of projects.
Mr. John Mitchell, 41 Eagle Drive stated that taxes are high enough. The Charter was crafted yeas ago to avoid this type of arrangement where resident would not get the opportunity to speak out regarding a project of this size. Mr. Mitchell thanked Dr. Anwar for carefully reviewing this proposal and not supporting it and then requested that the remainder of the Council members speak to this issue.
4. Communications
Councillor Anwar recognized General Jim Throwe who will be inducted into the Connecticut Veterans’ Hall of Fame on November 28, 2012 at the State Capitol. Councillor Anwar also recognized the Superintendent and Board of Education for their budget book being selected by the Association of the Board of Education for how efficiently and effectively it communicates and how it has been allowing us as the Town Council and Board of Education to work collaboratively to make sure that we are able to provide the needs of our children. Councillor Anwar gave New Year wishes to residents of the Hindu faith who celebrated Diwali on November 13, 2012.
Mayor Delnicki recognized the Patriotic Commission for the Veterans’ Day program that was held at VMP and for the programs at the schools. Tonight there is not a discussion on the Hockey Facility/Recreation Center proposal and requested that if Council members have any questions to please submit them in writing.
ITEM:
5. Town Manager’s Report
Mr. Galligan reported on the Town Manager’s Report as shown in attached Exhibit A.
Deputy Mayor Bazzano urged residents to review their assessments and requested that Charlie Danna, the Town Assessor be at the next Town Council meeting to discuss this issue.
Councillor Anwar requested that the Town Manager review the State budget. Mr. Galligan explained that the State Budget estimate for this year is being projected as having a shortfall of $385,000,000.00. Mr. Galligan explained that he was at the Capitol last week with CCM and there was a plea made to the Governor’s Office that municipalities should not be touched as we have been cut for years. That commitment was not given but the Office will try to keep that commitment. Next Year there are different estimates from $1.1 billion dollars to $1.3 billion dollars deficit which is a concern for South Windsor.
Councillor Anwar congratulated the Town staff for a job well done during the last storm. The Town should have some type of a fuel storage system that would help the community in the event of a disaster. The Town Council should also discuss the opportunity of the gas stations in Town having generators.
Councillor Yagaloff stated that residents received their new assessments but does not have that much value without knowing what has happened with the grand list. Mr. Galligan explained that the process does not end until late December, early January and the grand list is not done until February. Mr. Galligan said he would like to try to get the new budget to the Council by December and an estimate would be put in for how much the grand list will change. Councillor Yagaloff informed the public that if you have an assessment and it went down, it does not mean that your taxes are going to go down, in fact the taxes may go up because the overall average reduction or gain in the grand list is not known. A resolution will be brought forward at the next meeting to impose a spending/hiring freeze.
Councillor Havens commended the Registrar of Voters for the orderly manner in which the last election was carried out. Councillor Havens then suggested that the Executive Session not be held until the Regular Meeting.
6. Items for Discussion
Town Attorney Dwight Johnson began discussions by reviewing the conclusion of the opinion letter that was submitted to the Council, as shown in the attached Exhibit B.
Mayor Delnicki recessed the Work Session in order to call the Regular Meeting to order at 8:00 p.m. The Work Session reconvened at 8:04 p.m.
ITEM:
6. A. (Continued)
Answering questions from the Council, Town Attorney Johnson explained that if the Town has issued bonds and decided not to pay its debt back it would force the Town into an issue with all of its debt outstanding. In the form of a 63-20 Corporation, the Town is not taking on indebtedness, the 63-20 Corporation is taking it on. If the town were to lease a portion of the project there would be an annual budgeted expenditure. If the Town entered into a multi-year lease then the Town would have liability to the 63-20 Corporation. If the Town were to breach its obligation under the lease, that would not mean it would be liable for the bond indebtedness of the 63-20 Corporation.
Councillor Beaulieu questioned if the bonds from a 63-20 Corporation are done through a direct sale as opposed to an open market sale of bond? Town Attorney Dwight Johnson felt that is a question better suited for Attorney David Panico.
Town Attorney Dwight Johnson then explained that there was minimum research done regarding prevailing wage and it seemed clear that prevailing wage would be required. More research could be done on this subject if the Council would like that.
Councillor Yagaloff recommended that if the Council decides to use a 63-20 Corporation, a policy should be adopted by the Town Council. All information and materials should go to the Council who in turn would share that information with the public unless true confidentiality is necessary. If the Council is not willing to adopt a policy regarding a 63-20 Corporation for this project then Councillor Yagaloff stated he would not support the concept of a 63-20 Corporation.
Mr. Galligan explained to the Council that if the Council decides they want to go forward with a Recreation Center, an RFP would be the first thing that should be done. Prior to that though, the Council would have to decide what the Recreation Center would consist of and how that concept would be managed, either through the Town or another entity. If hockey was run privately, that would be a taxable portion of the project. If a pool were decided to be constructed, that would be run through the Town and would be financed through a 63-20 Corporation thereby it would be non-taxable. These are the type of decisions that the Town Council will need to make. Mr. Galligan told the Town Council that he has been approached by investors who are interested in a public private partnership for this project.
Deputy Mayor Bazzano stated that the Athletic Fields Sub-Committee discussed using a 63-20 Corporation for the creation of athletic fields and then questioned if Town owned land could be transferred to a 63-20 Corporation or would that have to go to referendum based on it being Town owned land? Mr. Galligan stated he would have to research this question.
ITEM:
6. A. (Continued)
Councillor McCann reviewed how the Town is authorized to purchase property of any sort under the Town Charter which are as follows:
- Budget authorization by the Town Council adopted on an annual basis.
- Set aside funds in the Capital Projects fund annually.
- Purchase property over time as long as the Town has a seller that is willing to sell to the Town over time.
- Bonding that is submitted to the Town through a referendum process.
- The use of a 63-20 Corporation which allows the Town Council to enter into an agreement with a separate entity which itself will issue bonds.
Town Attorney Johnson stated he would review each option using the Town Charter and get back to the Town Council after his review.
Answering further questions from the Council, Town Attorney Johnson stated that he does not think there is anything in the statutes that would prohibit the Town to create one 63-20 Corporation for multiple projects or create multiple 63-20 Corporations for different projects. There is nothing specific to a 63-20 Corporation that creates risks that the Town would not face through other forms of financing and because it is a separate entity, the exposure to a municipality from problems would be less. The Town would have to carefully follow the statute and the related regulations to set up a 63-20 Corporation properly . A 63-20 Corporation does not make a project fiscally viable but allows the Town to borrow money more cheaply then a for-profit entity could.
Mr. Galligan explained that if the Town financed a project through a 63-20 Corporation and then used a portion of that facility, the Town would have a lease arrangement. The Town Council will have to decide what the goal or objective is before going into a 63-20 Corporation.
Town Attorney Johnson explained that the purpose of using a 63-20 Corporation to finance a project is to permit the agent to issue bonds more cheaply then otherwise would be the case and at the same time protecting the Town from liability, but would check if there would be unintended consequences if the Town decided to walk away from the project. The Town has the ability to finance a project through a 63-20 Corporation after it has failed through a referendum because the Town would not be liable for the indebtedness.
Mayor Delnicki questioned if a Town could cease to use referendums and strictly use 63-20 Corporations? Town Attorney Dwight Johnson stated he would have to review this question.
Mr. Galligan felt that a 63-20 Corporation would not be appropriate to use for road repairs.
ITEM:
6. A. (Continued)
Mayor Delnicki then questioned if residents of South Windsor have the right to petition for referendum? Town Attorney Johnson stated he would have to look at the Town’s Charter provisions. If South Windsor’s charter permits citizen referendum to overcome a resolution adopted by the Council then the answer would be yes, but he would review this.
Councillor Yagaloff said that because the 63-20 Corporation is a legal process, the Town Council will have to see if the cost is reasonable, if this is something the Town can afford and if the project is a substantial benefit to the Town. If the project is not a viable project then the Town should not be involved no matter how it is being financed. Councillor Yagaloff then stated that the Town needs to acquire more information regarding the project and if there is going to be a 63-20 proposal, there should be a policy that says everything will be done in front of the public by the Town Council.
Councillor Snyder felt that there are two separate issues that the Town Council will have to address. The first is the feasibility of doing a 63-20 Corporation regardless of the project. The next step will have to be to look at the merits of the project. The Town Council needs to give the Town Manager a clear concise direction to let him know what the Town Council would like to do.
Mayor Delnicki felt that the Town Council needs to determine if we want to do this project. The concerns of the public not having the opportunity to vote in referendum needs to also be discussed.
Councillor Yagaloff felt that one of the fundamental considerations here is that there is a private business in Town that could be affected by this. The Town should not be using Town resources to compete with an existing business unless if has a substantial benefit to the Town.
It was the general consensus of the Town Council that the Town Manager go ahead and develop the numbers for this project.
7. Executive Session
Will have the Executive Session in the Regular meeting
ITEM:
8. Adjournment
At 9:31 p.m. Deputy Mayor Bazzano made a motion to adjourn the Work Session. Councillor Yagaloff seconded the motion and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Recording Secretary
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