Skip Navigation
This table is used for column layout.
 
Minutes 08/03/2009

MINUTES
CITY COUNCIL & WPC AUTHORITY
August 3, 2009                                                                          Vol. 25 Page 609
A   REGULAR  MEETING of the City Council & WPC Authority was held in the Senior Center Main Room on Monday, August 3, 2009.
Present were Mayor Ryan J. Bingham, Corporation Counsel Ernestine Yuille Weaver, City Councilors Michael Colangelo, Elinor Carbone, Marie Soliani and Drake Waldron, Purchasing Agent Pennie Zucco, Deputy Fire Chief Gary Brunoli, Former Police Chief Robert Milano, Atty. William Conti, Tax Collector Robert Crovo, Members of the Coe Memorial Park Subcommittee Susan Coe Holbrook, Margaret Keywan, Marc Trivella, Mary Zbell and Frank Pennington.  Also present were four representatives from the Bank of America: Lynn Dashevsky, Jack Cockerill, Peter Weston and Atty. David Sfara.  City Councilors Richard Dalla Valle and Thomas Jerram were absent.
Mayor Bingham called the meeting to order at 6:30 p.m.
MINUTES #15
On a motion by Councilor Waldron, seconded by Councilor Colangelo, the Council voted unanimously to accept the minutes of the Regular Meeting held July 20, 2009.
OPEN TO THE PUBLIC #20
On a motion by Councilor Waldron, seconded by Councilor Colangelo, the Council voted unanimously to open the meeting to the public. Susan Holbrook spoke on behalf of the Coe Memorial Park Subcommittee in support of removing Bank of America as trustee of the Adelaide Coe Godfrey trust.

PRESENTATION BY BANK OF AMERICA #77
Mayor Bingham explained that a petition was presented to Probate Court to review other banks' services and the Probate Judge recommended an opportunity be given to Bank of America to present what they do for the City with the Adelaide Coe Godfrey Trust.

Lynn Dashevsky spoke of the number of Bank of America associates living and working in the State of CT, the number of banking centers they have including the two in Torrington, and their tradition of supporting needs in the State. She recounted some of the history of Adelaide Coe Godfrey's will and trust and said Bank of America wants to work and communicate with the City while taking into account Adelaide Coe Godfrey's words, federal & state law and IRS Regulations, the rights of future generations, and probate decrees. She said Bank of America submits annual accounting to Litchfield probate court for review and approval, and copies of reports to the CT Atty. General. The services they provide include an annual meeting for investment review, and an annual written notice of expected distribution from the account.

Jack Cockerill reviewed the investment performance, the current asset allocations, positioning of the portfolio, and gave an investment strategy overview.
As of June 30, 2009 the portfolio had a total return of -12.19%, compared to a -26.2% for the S & P 500 index and a +5.27% for the Barclay's Government Credit Index.  By asset class, equities had a negative return of 25.95% compared to 26.2% for the general market. Fixed Income was positive by 7.33% compared to 5.25% for the Barclay's Index.

Ms. Dashevsky said the account fees are 87 basis points, based on a sliding scale – if the account grows, the fees go down. These translate to $34,857 per year. She said because the trust was established under the will to last forever, the Bank of America has an obligation not to erode the principle.

Councilor Carbone questioned the extraordinary expenses such as $14,000 in legal fees during the first six months of 2009. Ms. Dashevsky replied the local attorney had to step back as he felt it was no longer appropriate for him to represent the trust in light of the probate petitions that were filed, requiring the Bank of America to appear with representation.  Councilor Carbone asked if the trust was being represented, or the bank. Atty. Sfara said banks do not appear in Court in any type of contested matter, and the legal fees are legitimate charges to the trust.

Councilor Carbone pointed out that other banks' fees seem to be almost 30% lower than what Bank of America charges. Ms. Dashevsky said their fees haven't increased.

Councilor Carbone questioned the Columbia Acorn fund investments which are owned by Bank of America. Mr. Cockerill explained that the internal fees to those funds are rebated to the portfolio.  Councilor Carbone said the rebates only account for $4,000 of the $11,000 fees for those funds.

Ms. Dashevsky suggested a performance and fee review.

Councilor Soliani said she would like to see this matter looked into more deeply and is uncomfortable with monies being put into Bank of America's own corporations.

Mr. Cockerill offered to do an analysis of those funds.

Mayor Bingham said that every last dollar needs to be applied to the park. He said everyone involved has a similar sentiment – to see if Bank of America really offers the best rate of return.

Ms. Dashevsky said they have had to recalculate how much principle they access, and when, in order to1) pay the City as much as they possibly can from the trust, 2) meet the IRS requirements to pay out even more from the trust than previously, and 3) not to erode the trust assets.

Councilor Carbone suggested the Council consider soliciting what other trustees are charging.

Mayor Bingham suggested the Council also petition Probate Court to allow the City to compare other banks and make a recommendation in a formal process.

Councilor Carbone said it may not be necessary to justify to Probate Court the bank comparison, in light of CGS 45a-242, and the fact that Bank of America is not the original Trustee. She suggested Council simply petition the Court to remove the Trustee and appoint a successor trustee.

ADD TO AGENDA #1695
On a motion by Councilor Carbone, seconded by Councilor Colangelo, the Council voted unanimously to add an item to the agenda.
PETITION PROBATE COURT TO REMOVE TRUSTEE  #1717
Councilor Carbone made a motion to direct the Mayor and Corporation Counsel to petition Litchfield Probate Court to remove Bank of America as trustee and appoint a successor trustee with a recommendation that it be Torrington Savings Bank, not precluding Bank of America from competing.

Councilor Carbone modified her motion as follows: To direct the Mayor and Corporation Counsel to petition Litchfield Probate Court to remove the current Trustee of the Adelaide Coe Godfrey Trust and appoint a successor Trustee. Councilor Colangelo seconded the motion.

Atty. Weaver pointed out it must be proven that there is unfitness, unwillingness or persistent failure of the fiduciary to administer the estate effectively. She suggested the Council not move to replace the fiduciary without additional information. Atty. Weaver recommended finding out what the City's and Trustee's obligations are to each other, and to perform due diligence with Bank of America.

Councilor Carbone rescinded her motion with a request that Corporation Counsel come back with an opinion on this. Councilor Colangelo rescinded his second.

**Councilor Colangelo moved to table the motion to direct the Mayor and Corporation Counsel to petition Litchfield Probate Court to remove the current Trustee of the Adelaide Coe Godfrey Trust and appoint a successor Trustee. Councilor Carbone seconded and the motion to table was unanimously approved.                     ** Note: motion was previously rescinded.
Atty. Sfara pointed out that removal with cause, trustee unfitness, would be difficult to prove since accountings have been approved every year, and removal without cause requires the consent of all the beneficiaries, meaning the consent of the Attorney General who speaks for all the people.
DISCUSSION: Police Chief Pension Agreement  #2249
Atty. Conti noted in the April 3, 2006 City Council meeting, the pension cap was set at 60% with Former Chief Milano and Chief Maniago receiving 67% because Chief Milano paid some $6500 to buy back 3 ½ years of service time. He said now the base level has been raised, but the City doesn't want to give the Former Chief the 7% that was purchased. He said this is a breach of the City's obligation and of past practice. Atty. Conti added that no negotiations were done for the buy-back of service time.  He said this Council has already recognized that these employees are entitled to more than the Management Resolution employees.

Atty. Weaver said she is looking for a final understanding from Council if the 67.5% was intended to be the cap or max allowable for Former Chief Milano and Chief Maniago or if it intended to add 7% onto the maximum given to the Police Dept. Her interpretation of the minutes and materials is that 67% was noted to be a maximum.

Atty. Conti said he interpreted it as the Chief & Deputy Chief would get 7% above the contract at that time, and they are entitled to at least 74.5%.
Councilor Soliani asked if Former Chief Milano had tried to re-negotiate his pension before retiring.  Former Chief Milano said he had a written acceptance for the 7% dating back to 2000.  He said the City has held onto his money for nine years and returned it without any interest.

Councilor Soliani said the Former Chief had agreed to 67% but didn't try to negotiate for more. Former Chief Milano said past Chiefs retired under the pension agreement of Local 442.

Councilor Colangelo said his interpretation is the same as Corporation Counsel Weaver's, but is shocked that interest wasn't paid on Former Chief Milano's money.

Councilor Soliani pointed out the wording is "pension benefit maximum at 67½%."

Atty. Weaver said the problem is in trying to merge two separate contracts. Mayor Bingham said the pension discussion in 2006 had been an opportunity to bridge the gap. Former Chief Milano said that never in the history of the Torrington Police pension plan and from the institution of the union in 1965 forward has a Police Chief retired without benefitting from the current percentages offered in the union pension plan.
ADD TO THE AGENDA #3292
On a motion by Councilor Colangelo, seconded by Councilor Carbone, the Council voted unanimously to add an item to the agenda.
FORMER POLICE CHIEF PENSION AGREEMENT  #3329
On a motion by Councilor Colangelo, seconded by Councilor Carbone, the Council voted unanimously to concur with Corporation Counsel in that the Former Police Chief's Pension is set at 67½% and to send the matter to the Board of Trustees for the Police & Firemen Pension Fund.
RESOLUTION: CT DEPT. EMER. MGT. AGREEMENT #3364
On a motion by Councilor Colangelo, seconded by Councilor Carbone, the Council voted unanimously to adopt a resolution to authorize the Mayor to enter into an agreement with the State of CT Dept of Emergency Management & Homeland Security Coordinating Regional Planning Organization Council of Governments of the Central Naugatuck Valley and the DEMHS Region 5 Regional Emergency Planning Team.
Resolved, that the Board of Councilmen may enter into with and deliver to the State of Connecticut Department of Emergency Management and Homeland Security and all documents which it deems to be necessary or appropriate; and
Further Resolved, that Ryan J. Bingham as Mayor/Chairman of the Board of Councilmen, is authorized and directed to execute and deliver any and all documents on behalf of the Board of Councilmen and to do and perform all acts and things which he deems to be necessary or appropriate to carry out the terms of such documents, including, but not limited to, executing and delivering all agreements and documents contemplated by such documents.
RESOLUTION: CT COMMUN. DEVEL. BLOCK GRANT #3374
On a motion by Councilor Waldron, seconded by Councilor Soliani, the Council voted unanimously to adopt a resolution to authorize the Mayor to apply to the Department of Economic and Community Development of the State of CT for $385,000 through the State's Community Development Block Grant Program funded by the Recovery Act for sidewalk reconstruction from Main Street to Prospect Street. Mayor Bingham clarified that this is intended for Water Street.
Whereas, federal monies are available under Title XII of Division A of the American Recovery and Reinvestment Act of 2009, Public Law 111-005 (approved February 17, 2009) to carry out the program under Title I of the Housing and Community Development Act of 1974, 42 U.S.C §5301, et. Seq., as amended, and administered by the State of Connecticut, Department of Economic and Community Development as the Connecticut Small Cities Community Development Block Grant Recovery Program (CDBG-R; and
Whereas, pursuant to Chapter 127c, and Part VI of Chapter 130 of Connecticut General Statutes, the Commissioner of the State of Connecticut Department of Economic and Community Development is authorized disburse such federal monies to local municipalities; and
Whereas, it is desirable and in the public interest that the City of Torrington make an application to the State for $385,000.00 in order to undertake a Small Cities Community Development Program and to execute an Assistance Agreement.
NOW THEREFORE BE IT RESOLVED by the City Council 1)That it is cognizant of the conditions and prerequisites for the state financial assistance imposed by Part VI of Chapter 30 of the CGS and 2) That the filing of an application for State financial assistance by City of Torrington in an amount not to exceed $385,000.00 is hereby approved and that Ryan J. Bingham, Mayor is directed to execute and file such application with the Connecticut Department of Economic and Community Development, to provide such additional information, to execute such other documents as may be required, to execute an Assistance Agreement with the State of Connecticut for State financial assistance if such an agreement is offered to execute any amendments, decisions, and revisions thereto, and to act as the authorized representative of City of Torrington.
HOUSING REHAB GRANT FUND #3407
On a motion by Councilor Waldron, seconded by Councilor Carbone the Council voted unanimously to approve payment of $75.00 from the Housing Rehab Grand Fund #0250 to The City of Torrington Corporation Counsel for a Title Search performed for 130 Highland Ave., tabled on July 20, 2009.
CITY HALL ADA IMPROVEMENTS #3465
On a motion by Councilor Waldron, seconded by Councilor Colangelo the Council voted unanimously to approve payment of $8100.00 from Fund #317 to L. Wagner & Assocs. for professional services rendered from April 1, 2009 through June 30, 2009 for City Hall ADA Improvements Project.
CHIP SEALING OF ROADS #3473
On a motion by Councilor Soliani, seconded by Councilor Carbone, the Council voted unanimously to accept the Purchasing Agent's recommendation to award a unit price contract to Comer Contracting Inc for the Chip Sealing of Roads for the 2009/2010 season.

ROAD SALT PURCHASE #3488
On a motion by Councilor Colangelo, seconded by Councilor Soliani, the Council voted unanimously to accept the Purchasing Agent's recommendation to waive the bid process and accept the State Bid Contract #08PSX0189 for the purchase of Road Salt for the fiscal year 2009-2010.
SECTION B #3498
On a motion by Councilor Waldron, seconded by Councilor Soliani, the Council voted unanimously to consider business in Section B.
MUNICIPAL RENOVATIONS #3507
On a motion by Councilor Waldron, seconded by Councilor Soliani, the Council voted unanimously to approve the following payments from the Municipal Renovations Fund #0316.

Mike Clark
7/22/2009
578.68
Misc Exp - City Hall
Special Testing Laboratories, Inc.
23234
1295.00
Soil samples
Torrington Business Park
8/1/2009
9461.73
August rent
Turri Electric
11657
500.00
City Hall Ave pole fixture

OPEN TO PUBLIC: AGENDA ITEMS ONLY #3519
On a motion by Councilor Colangelo, seconded by Councilor Waldron, the Council voted unanimously to open the meeting to the public on "agenda items" only.  

Susan Coe Holbrook said the Coe Memorial Park Subcommittee had some issues with what the Bank of America had said, (**end Tape 1) specifically whether legal counsel represented the Bank of America or the Trust. She said the Bank of America did not take over the Trust until 2005, and recounted some of the Trust's history. Ms. Holbrook said the Trust has gone through five different banks, through acquisitions and mergers and that the Coe family always did business in this town -- their wishes should be considered. Ms. Holbrook said the Bank of America did not give annual performance reviews to the beneficiaries.
BUSINESS BY DEPT HEADS #265
On a motion by Councilor Colangelo, seconded by Councilor Waldron, the Council voted unanimously to consider business presented by Department Heads.   No business was presented.
BUSINESS BY MAYOR AND COUNCIL #279
On a motion by Councilor Colangelo, seconded by Councilor Carbone, the Council voted unanimously to consider business presented by the Mayor and members of City Council.
No business was presented.
EXECUTIVE SESSION: PENDING LITIGATION #293
On a motion by Councilor Colangelo, seconded by Councilor Waldron, the Council voted unanimously to enter executive session under pending litigation at 8:05 p.m.
OPEN SESSION
On a motion by Councilor Soliani, seconded by Councilor Waldron, the Council voted unanimously to return to open session at 8:20 p.m.
ADJOURNMENT
On a motion by Councilor Waldron, seconded by Councilor Colangelo, the Council voted unanimously to adjourn at 8:20 p.m.

ATTEST: JOSEPH L. QUARTIERO, CMC_
              CITY CLERK

Respectfully submitted,
Carol L. Anderson, CCTC
Asst. City Clerk