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CITY COUNCIL & WPC AUTHORITY
FEBRUARY 3, 2003
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A regular meeting of the City Council & WPC Authority was held on Monday, February 3, 2003, immediately following a meeting of the Board of Trustees of the City Employees’ Retirement Fund scheduled for 7:00 p.m., in the Council Chambers.
Attending was Mayor Owen J. Quinn, Jr., Thomas C. Jerram, Paul F. Samele, Jr., Marie P. Soliani, David M. Bascetta, Richard E. Dalla Valle, and James D. Reginatto, Corp. Counsel Albert Vasko, Public Works Director Gerald Rollett, and Treasurer Richard J. Friday.
Mayor Quinn called the meeting to order at 7:50 p.m.
OPEN TO THE PUBLIC #240
On a motion by Councilor Reginatto, seconded by Councilor Jerram, the Council voted unanimously to open the meeting to the public.
Andrew Nargi, 217 Weed Street, responded to Mayor Quinn’s recent State of the City Address. He felt the Mayor didn’t give enough emphasis to the concept of having no mill increases. As a taxpayer and citizen, he advocated an agenda to keep the mill rate at its current level.
Secondly, Mr. Nargi felt it would be beneficial for Mayor Quinn to lead the various boards into a joint meeting so they could all be on the same page in regard to the mill rate.
Mayor Quinn noted he was looking into the possibility of holding joint meetings and would keep Mr. Nargi posted.
SEWER PROJECTS / SECTION 8-24 REFERRAL #330
On a motion by Councilor Dalla Valle, seconded by Councilor Jerram, a discussion took place in regard to the request to formally approve the following sewer projects and accept the Section 8-24 Referral from the Planning & Zoning Commission.
Replacement of approximately 3200 lineal feet of sanitary sewer lines in East Main Street generally from Columbus Road to New Harwinton Road to eliminate existing deteriorating sewers, such existing sewers to be abandoned and removed from service; including any related appurtenance construction or installation, land or easement acquisition and other work.
Replacement of approximately 4500 lineal feet of sanitary sewer lines in New Harwinton Road generally from East Main Street to Norton Street to eliminate existing deteriorating sewers, such existing sewers to be abandoned and removed from service, including any related appurtenance construction or installation, land or easement acquisition and other work.
There was some confusion on how the Council, acting as the WPC Authority, could vote on the aforementioned sewer projects prior to holding the public hearing on February 10, 2003.
Corp. Counsel Vasko stated that the WPC Authority should vote to accept the referral from Planning & Zoning, and vote on the two sewer projects on February 10, 2003, after the public hearing was held.
Mr. Friday indicated that $2.8 million was left from the Northwest Interceptor already approved by the voters. Of the $2.8 million, $1.2 million was for Highland Avenue and the balance of $1.6 million, if approved by the WPCA, could be used on the East Main Street sewer lines because it was under the Water Pollution Control Authority. If it’s not approved, the City would need a new Bond Issue for $1.6 million and the cost would be much greater.
The board inquired whether they needed to approve a resolution.
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Mayor Quinn thought a resolution was what they would get from the minutes of this meeting of the Board of Councilmen, acting as the WPCA, approving the referral from Planning & Zoning for the two projects.
Corp. Counsel Vasko indicated that they needed to approve a resolution prior to selling the bonds, so the resolution could be approved after the public hearing.
Mr. Rollett explained that the city was put under orders twenty years ago to upgrade the pump station and downstream sewers. The pump station was upgraded. The city would upgrade the sewers when they warranted. After the sewers collapsed in 1996, the city looked at designs and started replacing sewers near the Torrington Sash & Door, the gas station and underneath Route 8, and looked at the most cost effective option to replace existing sewers to the top of New Harwinton Road passed Norton Street, by going up either New Harwinton Road or Torrington Heights Road. He stated that these projects were intended to replace existing sewers rather than do new construction. The sewers will be enlarged to take in the additional flow that is causing many downstream problems. The total estimated
project cost is about $2 million and he was looking to spend whatever was left of the bond to fund the projects. The city’s bond counsel has assured the city that the bond funds could be used for these projects, which are expected to be completed in two years. The first contract is expected to go out to bid this year to get the bulk of the work done and to use up the majority of the bond funds. A second project [sic] contract) would go out to bid to complete what’s left. Since it’s so close cost wise, the city might be able to complete the projects within the bond amount. It’s Mr. Rollett’s goal to put the bids out when costs are low in order to maximize the funds.
Councilor Jerram inquired whether these projects would solve a lot of the city’s sewer woes in that part of town.
Mr. Rollett indicated that this would solve all the sewer woes on lower East Main Street and New Harwinton Road.
Councilor Jerram inquired whether Mr. D’Andrea’s new construction in Harwinton would affect these sewer lines.
Mr. Rollett said no.
Mr. Rollett explained that our sanitary sewer system is severely impacted by both, groundwater and rainfall induced inflow. In the spring during a heavy rainfall when the groundwater is high, the city’s plant flow can go from 4 or 5 million gallons per day where they should be, to an excess of 20 million gallons per day. The city has been actively looking for old pipes that may be broken and houses that have roof leaders and sump pumps connected to the sanitary sewers. The combination of old sewers and high ground water create a lot of flow problems. In a perfect environment there would be no increase in flow during a rainfall.
Councilor Bascetta suggested that perhaps the board should leave it up to Mr. Rollett’s expertise to find a way to get the project 100% complete with the $1.6 million left in the bond fund, and that a dead stop should be placed on the projects if costs run higher than the $1.6, or push it to another capital improvement year.
Mr. Rollett indicated that it was his job to get the projects done in an economical manner. The goal is not to impact budgets and sewer fees, or have to go out for additional bonding.
Councilor Jerram inquired whether any extra funds could be taken from the WPCA funds.
Mr. Rollett said, “Yes it can. We have capital funds, we can look at the accounts in those, and if it ends up being $1.8 million, it’s not going to impact the user fee,
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that’s an excellent place to look at trying to complete the entire project.”
Mr. Friday informed the board that Dennis Dix, the City’s financial advisor for the last few issues, believed there was no resolution because one was already approved in 1988 authorizing the spending of the money. Tonight’s approval was necessary because it was going from the Northwest to the Northeast and the public hearing was to inform the taxpayer’s on what the city was doing with their sewer money.
MOTION TO APPROVE SECTION 8-24 (P & Z) #950
On a motion by Councilor Reginatto, seconded by Councilor Dalla Valle, the Council, acting as the WPCA, voted unanimously to accept the Section 8-24 referral from the Planning & Zoning Commission.
RESOLUTION: REFUNDING ISSUE OF 1993 #980
On a motion by Councilor Jerram, seconded by Councilman Bascetta, a discussion took place in regard to the following:
“Adopt a Resolution Authorizing the Issuance of Not Exceeding $8,000,000.00 Refunding Bonds for Payment in Whole or in Part of the Outstanding Principal of and Interest and Any Call Premium on the City’s $15,480,000.00 General Obligation Bonds, Issue of 1993 and Related Costs.”
Mr. Friday explained the request was to approve the refinancing of, not to exceed $8,000,000.00 of the city’s 1993 General Obligation Bond, which was originally $14,750,000.00 for the Middle School and $860,000.00 for sewers. At the present time, $7,065,000.00 was left on the school and $430,000.00 on the sewers, for a total of $7,495,000.00 plus expenses.
Mr. Friday stated that the city already received approval from the voters in 1988 to borrow $25 million for the Middle School, half of it had already been refunded. This was the second half.
Mr. Dix stated that the numbers were rounded out to $8 million to allow for some leeway since refunding was very sensitive with regard to interest rates. The transaction would be tracked very closely until February 13, 2003, the day of the pricing, and he didn’t expect to use the entire $8 million. If in fact it got to $8 million and it looked like the deal wasn’t working, it would be stopped.
Mr. Friday indicated that the city’s bond counsel, Day, Berry & Howard, had reviewed the plan and the numbers, and agreed they could stop the transaction if it went awry.
Mr. Dix stated that the city was refunding the life of the existing bond since the law was specific in that it couldn’t go any longer in time than the outstanding bond. The expected savings within that life time was expected to be $700,000.00.
Mr. Friday said the average coupon for the original issue was 5.36%, and the anticipated average coupon is 3.04% or better. Most of the costs will be picked up by the State Board of Education.
VOTE ON RESOLUTION #1160
On the same motion, the Council voted unanimously to adopt a Resolution Authorizing the Issuance of Not Exceeding $8,000,000.00 Refunding Bonds for Payment in Whole or in Part of the Outstanding Principal of and Interest and Any Call Premium on the City’s $15,480,000.00 General Obligation Bonds, Issue of 1993 and Related Costs.
BE IT RESOLVED,
(a) That the City of Torrington issue its refunding bonds, in an amount not to exceed EIGHT MILLION DOLLARS ($8,000,000), the proceeds of which are
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hereby appropriated: (1) to fund one or more escrows, the balance held in such
escrows, together with the investment earnings thereon, to be applied by the City to the payment in whole or in part, as to be determined by the Mayor and the Treasurer of the City, of the outstanding principal of and interest and any call premium on the City’s $15,480,000.00 General Obligation Bonds, Issue of 1993 (consisting at original issue of $14,620,000.00 School Bonds and $860,000.00 Sewer Bonds), including the payment of interest accrued on said outstanding bonds to the date of payment, and (2) to pay costs of issuance of the refunding bonds authorized hereby, including legal fees, consultants’ fees, trustee or escrow agent fees, underwriters’ fees, net interest and other financing costs and other costs related to the payment of the outstanding bonds described above. The refunding bonds shall
be issued pursuant to Section 7-370c of the General Statutes of Connecticut, Revision of 1958, as amended, and any other enabling acts. The bonds shall be general obligations of the City secured by the irrevocable pledge of the full faith and credit of the City. The Mayor and the Treasurer of the City shall sign the bonds by their manual or facsimile signatures. The law firm of Day, Berry & Howard LLP is designated as bond counsel to approve the legality of the bonds. The Mayor and the Treasurer are authorized to determine the amount, date, interest rates, maturities, redemption provisions, form and other details of the bonds; to designate one or more banks or trust companies to be certifying bank, registrar, transfer agent and paying agent for the bonds; to provide for the keeping of a record of the bonds or notes; to sell the bonds at public or private sale; to deliver the bonds; and to perform all other acts which are necessary or appropriate to issue
the bonds.
(b) That the City hereby declares its official intent under Federal Income Tax Regulation Section 1.150-2 that costs of the refunding may be paid from temporary advances of available funds and that (except to the extent reimbursed from grant moneys) the City reasonably expects to reimburse any such advances from the proceeds of borrowings in an aggregate principal amount not in excess of the amount of borrowing authorized above for the refunding. The Mayor and the Treasurer are authorized to amend such declaration of official intent as they deem necessary or advisable and to bind the City pursuant to such representations and covenants as they deem necessary or advisable in order to maintain the continued exemption from federal income taxation of interest on the bonds authorized by this resolution, if issued on a
tax-exempt basis, including covenants to pay rebates of investment earnings to the United States in future years.
AMENDED 2/27/2003 TO INCLUDE THE FOLLOWING
(c) That the Mayor and the Treasurer are authorized to make representations and enter into written agreements for the benefit of holders of the bonds to provide secondary market disclosure information, which agreements may include such terms as they deem advisable or appropriate in order to comply with applicable laws or rules pertaining to
the sale or purchase of such bonds.
(d) That the Mayor and the Treasurer are authorized to take all other action which is necessary or desirable to enable the City to effectuate the refunding of all or a portion of the City’s $15,480,000 General Obligation Bonds, Issue of 1993, and to issue refunding bonds authorized hereby for such purposes, including, but not limited to, the entrance into agreements on behalf of the City with underwriters, trustees, escrow agents, bond insurers and others to facilitate the issuance of the refunding bonds, the escrow of the proceeds thereof and investment earnings thereon, and the payment of the outstanding bonds in whole or in part.
(e) That the Board of Education, the Superintendent of Schools, the Mayor, the Treasurer and other proper officers and officials of the City are each authorized to execute and file all necessary applications, agreements and documents with the State Department of Education in order to obtain State grants to finance in part principal and interest on, and the costs of issuance of, refunding bonds authorized hereby to the extent such bonds
are allocable to the refunding of portions of the City’s $15,480,000 General Obligation Bonds, Issue of 1993, representing school bonds issued pursuant to Section 10-289 of the General Statutes of Connecticut, Revision of 1958, as amended.
(f) That the above authorization to issue refunding bonds shall lapse on December 31, 2003.
END OF AMENDMENT
APPOINTMENT OF FINANCIAL ADVISOR FOR ISSUE OF 1993 #1170
On a motion by Councilor Jerram, seconded by Councilor Bascetta, a discussion took place on the request to appoint Dennis Dix of Dixworks, LLC as the city’s financial advisor for the Issue of 1993.
Mr. Dix would manage the refunding of the Issue of 1993 previously discussed.
Councilor Dalla Valle inquired how much Mr. Dix was charging the city for his services.
Mr. Dix indicated that his fee was $20,000.00.
On the same motion, the Council voted unanimously to approve the appointment of Dennis Dix of Dixworks, LLC as the city’s financial advisor for the refunding of the Issue of 1993.
CARDINAL ENGINEERING #1220
On a motion by Councilor Bascetta, seconded by Councilor Soliani, the board voted unanimously to authorize the payments of $10,465.00 and $4,017.50 from Bond Fund #302 to Cardinal Engineering Associates, Inc., in regard to the Sanitary Sewer Improvements on Highland Avenue.
SMALL CITIES: L. WAGNER & ASSO. #1240
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On a motion by Councilor Dalla Valle, seconded by Councilor Soliani, the Council voted unanimously to authorize the payment of $4,855.00 from Small Cities Fund
#258 to L. Wagner & Associates, Inc. for professional services rendered from August 1, 2002 through December 31, 2002.
GORDON, MUIR & FOLEY #1290
On a motion by Councilor Bascetta, seconded by Councilor Jerram, the Council voted unanimously to authorize the payment of $440.00 from Southwest School Building Account to Gordon, Muir & Foley LLP for professional services.
RECOMMENDATIONS: ORDINANCE COMM. #1320
On a motion by Councilor Soliani, seconded by Councilor Reginatto, a discussion took place on the recommendations from the Ordinance Committee.
PUBLIC HEARING: FIRE ZONES
Councilor Soliani made a motion to schedule a Public Hearing for March 3, 2003, at 7:00 p.m., to discuss the Police Department’s proposed ordinance concerning “Fire Zones.” Councilor Bascetta seconded the motion. Unanimous.
During discussion, Corp. Counsel Vasko stated that the City’s parking ordinance already contained a fine for parking in fire zones. The new ordinance will add language to allow cars to be towed away for violating the ordinance.
Councilor Jerram inquired whether they could anticipate better enforcement than the enforcement that was taking place on the ordinance concerning the clearing of snow and ice on sidewalks.
Mayor Quinn noted that the authorities had been instructed to talk to homeowners in violation of the sidewalk ordinance and that the city was taking an aggressive stand on the matter.
PUBLIC HEARING: FIRE HYDRANTS
On a motion by Councilor Soliani, seconded by Councilor Bascetta, the Council voted unanimously to schedule a public hearing for March 3, 2003, immediately following the public hearing scheduled at 7:00 p.m., to discuss the Fire Department’s proposed ordinance regarding “The Clearing of Snow from Fire Hydrants.”
Councilor Soliani reported that the Ordinance Committee had tabled a proposed ordinance concerning Coe Park.
She would furnish the Council with an updated list of citations.
BUSINESS: DEPARTMENT HEADS #1570
On a motion by Councilor Reginatto, seconded by Councilor Dalla Valle, the Council voted unanimously to consider business presented by Department Heads. There was none.
BUSINESS: MAYOR & MEMBERS #1580
On a motion by Councilor Bascetta, seconded by Councilor Reginatto, the Council voted unanimously to consider business presented by Mayor Quinn and members of the City Council.
Councilor Jerram indicated that he was prepared to receive committee assignments vacated by former Councilwoman Ruwet.
Mayor Quinn stated that he would notify him about his new assignments prior to the next Council meeting.
Councilor Jerram was pleased to see the City’s website was up-to-date with the
State’s newly elected officials. He indicated that the Economic Development
Coordinator would also update the site with the new Charter Revision language.
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Councilor Reginatto stated that he had received several phone calls from residents concerned about a possible 4.5% mill increase.
Addressing Mayor Quinn’s request for a zero percent increase from department heads, Councilor Reginatto suggested that department heads come in with a 5 percent reduction and a list of what the ramifications would be to achieve that threshold.
Mayor Quinn stated that department heads were working toward a zero percent increase in their budgets and were aware that additional revisions were possible.
Councilor Reginatto hoped the Council would have dialogue with the Board of Finance in regard to the budgets. He expressed his concern about being overruled by the Board of Finance after months of making tough decisions.
Councilor Jerram inquired whether Mayor Quinn had received any information from the Assessor in regard to the grand list. He was hoping for some growth to allow the city a little room to meet contractual increases.
Mayor Quinn said he knew the Tax Assessor was working on the grand list, however, he had not yet seen it.
Councilor Dalla Valle stated that the city should take a stand and request the owner of the old firehouse for his response in writing with regard to what he’s done to bring the building up to snuff.
Mayor Quinn noted that the building was scheduled to be inspected by the Fire Marshal and the Building Inspector, and the matter had been referred to the Assessor to determine whether there were any violations. The owner would also be meeting with the Economic Development Coordinator and himself to review the matter. He would keep the Council abreast of new developments.
Councilor Dalla Valle offered his assistance to the Fire Chief in having the fire hydrants cleared from snow until the new ordinance went into effect. He asked Chief Field to supply him with a list of where the hydrants were located.
ADD TO AGENDA #1910
Councilor Soliani made a motion to add an item to the agenda by 2/3rds vote with regard to the time the City Council meetings were held. Councilor Dalla Valle seconded the motion. Unanimous.
COUNCIL MEETINGS TO BEGIN AT 6:30 P.M. #1940
On a motion by Councilor Soliani, seconded by Councilor Reginatto, the Council voted unanimously to change the time of the City Council meetings to 6:30 p.m. on the first and third Mondays of the month as well as for special meetings.
During a discussion the Council decided to continue the policy of scheduling public hearings at 7:00 p.m. in order to get as much public participation as possible. The regular meeting would stop at 7:00 p.m. for the public hearings and resume after the public hearing.
Councilor Soliani stated that the time could always be readjusted.
Councilor Bascetta thanked Mayor Quinn for a very informative meeting concerning the Torrington Middle School and for getting the ball rolling.
ADJOURNMENT #2140
On a motion by Councilor Soliani, seconded by Councilor Jerram, the Council voted unanimously to adjourn at 8:45 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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