TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL MONDAY, JULY 15, 2013
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Delnicki called the meeting to order at 7:02 p.m.
2. Roll Call
Members Present: Mayor Thomas Delnicki
Deputy Mayor Gary Bazzano
Councillor M. Saud Anwar
Councillor Cindy Beaulieu
Councillor Edward Havens
Councillor Kevin McCann
Councillor Janice Snyder
Councillor Keith Yagaloff (arrived at 7:10 p.m.)
Members Absent: Councillor Cary Prague
Also Present: Matthew B. Galligan, Town Manager
Kari Olson, Murtha Cullina, LLP
Michael Markowicz, Murtha Cullina, LLP
3. Public Participation
Ms. Mary Sullivan, Wyndemere Court came before the Town Council to voice her concerns regarding the proposed athletic fields on 11 acres of Nevers Road. Ms. Sullivan stated that this proposal would affect her quality of life because Wyndemere Court would be surrounded by fields which produce noise and lights. Ms. Sullivan also voiced environmental concerns because Plum Gulley is in the proximity as well as concerns regarding the tax burden this project could create. If the Council supports this proposal, Ms. Sullivan requested that the Council consider Town bonding which would go to referendum in November.
Mr. Mike Sullivan, 24 Jared Court came before the Council and stated that back in May when the Town met with representatives from TIP Capital, he recalls that when a question arose about financing or leasing athletic fields through this company, it was stated that this company did not have any experience. Mr. Sullivan stated that he hopes before the Town Council starts committing Town resources, Town funds, long term bonding and obligations to the taxpayers that the Town Council will understand all the obligations of the Town before making any decisions.
Mr. Matt Riley, 12 Heatherwood Drive came forward speaking in favor of the proposed plan for additional athletic fields in Town. Mr. Riley stated that he would hope that during discussions, each Council member would voice their position with respect to whether or not fields are an area that the Town needs improvements or not. There are multiple options relating to financing that can be decided on at a later date.
ITEM:
4. Communications
Mayor Delnicki informed the Council that on June 23, 2013 Mitchell Tilghman and Kevin Fortin attained the rank of Eagle Scout. There was a grand opening for Real Warrior Entertainment on July 12, 2013.
Councillor McCann made a motion to suspend the rules to bring discussion item 6A regarding the Miracle Field forward. Councillor Beaulieu seconded the motion; and it was approved, unanimously.
6. Items for Discussion
A. Miracle Field (requested by Deputy Mayor Bazzano)
Deputy Mayor Bazzano explained that a Miracle Field is a field that allows children with disabilities to play at an athletic facility with no boundaries. Mr. Steven Callahan had stated it would be wonderful to have a Miracle Field in South Windsor. After careful review, it was felt by the Athletic Fields Sub-Committee that this field would be a good addition to the plan. The field can fit on the plan without impeding on any of the other fields. The only other Miracle Field in the area is in West Hartford. The proposed Miracle Field would complete this plan.
Mr. Steven Callahan came before the Town Council and showed a short video to help explain the need for a Miracle Field.
Answering questions from the Council, Mr. Rich McCarthy explained that a Miracle Field provides opportunities for children with mobility issues and those that have sight impairments. There is an assortment of activities that a field of this type could be used for. Mr. McCarthy also explained that there are grants that are available. There are model plans for the field as well as a manufacturer for all of the component pieces. At this time when the field is not being used it is locked to prevent harm to it. The field could be used for disabled veterans, whiffle ball tournaments, or for senior citizen activities.
Ms. Shoham came forward and explained that the Miracle League is a national organization out of Georgia. If the Town goes forward with building the field, the Town will have to join the organization and then plans would be sent to the Town as well as preferred vendors. The field can be used for a variety of events.
Councillor Yagaloff felt that this is a worthwhile program that would also help to socialize children.
Ms. Shoham stated that the nice thing about the proposed field in South Windsor is that the field would be among other fields and would give the children inclusion.
ITEM:
6. A. (Continued)
Councillor McCann stated that he is in favor of a Miracle Field. The success of children who have had obstacles makes coaching worthwhile. The field will give children the ability to succeed.
Deputy Mayor Bazzano said he is very happy with the whole plan and feels the Miracle Field is a great fit.
Mr. Jack Hollick stated that this is one of the best programs he has ever been involved with because everyone wins. The whole experience is positive for the players, parents, coaches and buddies.
Mr. Al Larson, 46 Jacques Lane and Chairperson for the Park & Recreation Commission stated he feels this would be an asset to the Town. The Town can do fund raising and find grants to help offset the cost.
Ms. Mcavoy explained that this playing field does not only benefit the children with disabilities but also helps the children who are helping.
B. Master Lease Agreement with TIP Capital (requested by Town Manager, Matthew B. Galligan)
Mr. Galligan explained that the this Master Lease Agreement would give the Town another way to finance items. This agreement has nothing to do with athletic fields but would be used to lease items from the budget that banks do not normally lease. The Master Lease Agreement still needs to be negotiated.
Attorney Michael Markowicz from Murtha Cullina came before the Town Council to review the draft Master Lease Agreement. Municipal leasing is just one means of financing projects. The advantages of this type of financing is that the interest payments can be structured in a way that income tax can be exempt and as a result the interest rate would be lower. The other advantage is as a means of financing certain projects, it is simpler, less administratively expensive then other options and it also limits the Town’s exposure in some regards. The main way it limits the Town’s exposure is the lease agreement does not implicate the Town’s full faith and credit for budget years going forward or taxes beyond the fiscal year. Attorney Markowicz then went through items of concern
regarding the agreement that should be negotiated with TIP Capital.
Mayor Delnicki recessed the Work Session at 8:00 p.m. in order to call the Regular Meeting to order. The Work Session reconvened at 8;20 p.m.
ITEM:
6. B. (Continued)
Attorney Markowicz reviewed further certain concerns with the lease agreement. Attorney Markowicz lastly pointed out that in the case of default, the Town would be responsible for removing equipment and returning the equipment which depending on the type of equipment could lead to some practical concerns and/or difficulties.
Mr. Galligan explained to the Council that he wanted the Council to see the template agreement before any negotiations happen.
Answering questions from the Council, Attorney Markowicz explained that after researching of this type of financing to see if it can be used for athletic fields, it was found that there is no legal basis why this type of project could not be financed through this type of vehicle. Although as mentioned previously, the Master Agreement provides in the event of default, the Town is required to return the equipment and obviously with certain types of equipment such as a parking lot it would be very difficult to return it in a form that the financing company would appreciate.
Attorney Olson explained to the Council that anything that the Town Council appropriated for the budget would be something that Town Manger would be able to sign off on but any new appropriations would need to come before the Town Council and a public hearing would be necessary for any item $25,000 or larger.
Mr. Galligan informed the Council that he is looking at TIP Capital because banks do not lease items such as generators or computers.
Councillor Yagaloff stated that he would not be inclined to approve this type of lease agreement because the Council could decide to enter into a larger lease for new expenditures that have not been budgeted for with a 5-4 vote and a public hearing. This type of financing leads to unnecessary spending and spending beyond the Town’s means.
Answering questions from the Council, Mr. Galligan explained that when a Committee asks for certain information such as if athletic fields can be leased through TIP Capital, those questions are answered for the committee. It is the Committee’s responsibility to inform the Town Council with information that they have received from the Town Manager. Mr. Galligan explained that the Council has approved 12 other financial institutions that can be used by the Town. Tonight TIP Capital is being brought to the Council as another financial institute that could be used for financing projects. The Council will need to make a decision at a different time on whether or not TIP Capital should be added to the list. Not all of the financing institutes that the Town currently uses will bid on items such
as generators. TIP Capital would be another tool used who is willing to bid on generators and computer equipment for the Town.
ITEM:
6. B. (Continued)
Councillor Beaulieu stated that tonight the Town Council is discussing a Master Lease Agreement with TIP Capital and listening about the pros and cons of the agreement from the Town Attorney which will need to be negotiated. This is a discussion of financing items that were approved in the budget, not any additional items.
Councillor Havens felt that a dollar amount should be incorporated into the agreement which limits the amount that can be leased.
Mr. Galligan informed the Council that he is in discussions with two other financial institution at this time in order to do the same thing which is to enter into a Master Lease Agreement. This will give the Town more options when going out to bid on projects.
Councillor Yagaloff voiced concern and stated that the lending institutes presently used by the Town apparently do not want to do business with the Town for these particular lease arrangements probably for good reason because it is not worth the risk.
5. Town Manager’s Report
Mayor Delnicki stated that this item would be discussed in the Regular Meeting.
7. Executive Session
None
8. Adjournment
At 8:05 p.m. Councillor Havens made a motion to adjourn the Work Session. Deputy Mayor Bazzano seconded the motion and it was approved, unanimously.
Respectfully submitted,
Deborah W. Reid
Recording Secretary
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