MINUTES
BOARD OF FINANCE
AUGUST 15, 2006
A REGULAR MEETING of the Board of Finance was held on Tuesday, August 15, 2006 in the Council Chambers.
Those in attendance included Mayor Ryan J. Bingham, members of the Board of Finance Daniel Farley, Mark Bushka, James Nichol, and James Zeller, Corp. Counsel Ernestine Yuille Weaver, Comptroller Alice Proulx, and Public Works Director Gerald Rollett, members of the Municipal Buildings Committee Gary Mercier, Chm., Marie Soliani, and Debra Brown, Building Official Brett Zuraitis, Project Architect from Fletcher Thompson Architects Joseph Ferrucci, and Construction Manager from O & G Industries Brian Holmes. Board of Finance members Bruce Cornish and Joseph Nader were absent.
Mayor Bingham called the meeting to order at 4:00 p.m.
MINUTES #025
On a motion by Mr. Zeller, seconded by Mr. Farley, the board voted unanimously to approve the minutes of the regular meeting held July 18, 2006.
OPEN TO THE PUBLIC #035
On a motion by Mr. Farley, seconded by Mr. Bushka, the board voted unanimously to open the meeting to the public. There was no public participation.
P & G PEPPER #050
Mayor Bingham read an e-mail written by Board of Finance member Bruce Cornish in regard to the various payments from the Sanitary Sewer Capital Improvement Fund #490, to P & G Pepper Construction Services, for various sewer line repairs which was tabled on 7/18/2006 because some were dated back to 2004.
Mr. Cornish concurred with the Comptroller’s suggestion that all work should be encumbered by a purchase order. He believed that some up-front confirmation from the contractor as to the City’s request for services, and contractor rates that apply to those services, would eliminate any question upon invoicing. He was in support of the payments at this time.
Please refer to #1910 for a vote on this matter.
WISH LIST FUND #090
On a motion by Mr. Zeller, seconded by Mr. Bushka, the board voted unanimously to transfer a total of $14,638.07 from the Wish List Fund to the Streetscape Fund, per the Comptroller’s memo dated 7/21/06.
WRIGHT-PIERCE #155
On a motion by Mr. Zeller, seconded by Mr. Farley, the board voted unanimously to authorize the payment of $22,960.00 from Sanitary Sewer Capital Improvement Fund #490 to Wright-Pierce for work on the South Main Street Pump Station and Sewer Design.
WALTER COMBES #170
On a motion by Mr. Farley, seconded by Mr. Zeller, the board voted unanimously to authorize the payment of $987.50 from the Sanitary Sewer Capital Improvement Fund #490 to Walter Combes for work on the Crestwood Road Sanitary Sewer Repair Project.
KERIN, FAZIO & LEONARD #180
On a motion by Mr. Zeller, seconded by Mr. Bushka, the board voted unanimously to authorize the transfer $3,800.00 from Contingency to Contract Services in the Assessor’s Budget for an appraisal fee in the Walgreens vs. City of Torrington matter.
Corp. Counsel Yuille Weaver explained that the city needed to clarify the value of the Walgreen property. The issue is that the city assessed the property at $2.9 million and Walgreen’s believes it should have only been assessed for $2.1 million. Actually, our Assessor has since discovered that the property has a value of $6 million. The appraisal will be for the city’s defense in this action.
PRESENTATION ON CITY HALL RENOVATION & IMPROVEMENT AND CITY BARN VEHICLE GARAGE CONSTRUCTION PROJECT #235
Public Works Director Gerald Rollett stated that the Municipal Buildings Committee was asking the Board of Finance to adopt a Resolution to appropriate $19,500,000.00 for the major City Hall Renovation Project and the construction of a small garage on the City Barn site. The Buildings Committee is also recommending a December 2006 referendum date which is set by the Board of Councilmen.
Mr. Rollett explained that City Hall is a massive, well built masonry structure, and, because of this, it’s difficult to perform any renovation work. City Hall has never undergone any major renovation work. Any renovations that were performed were code and use driven, and done in a piece meal manner. The proposed renovations will provide additional square footage and assure the future life of this building.
The construction of a three bay garage at Winthrop Street will allow for the relocation of non City Hall functions including the Traffic Division and the former Parking Authority which is now part of the Traffic Division.
Mr. Rollett indicated the major issues within the renovations are broken down into five key categories: life safety and code issues, health issues, accessibility, increase efficiency, and preservation of its historic significance.
Joe Ferrucci, Project Architect from Fletcher Thompson Architects, informed the board that the first part of the project is to build a very modest, pre-engineered, three-bay garage to house the functions of non City Hall departments.
The significant amount of work on the City Hall project will be done “to” the City Hall building; the overall footprint of City Hall will not change. The Buildings Committee investigated several options. Different types of configurations were studied and investigated. Some of the shortfalls include the inefficient way the corridors are organized, the central part of the building isn’t used in the most effective manner, there’s no light to the center of the building, there’s no sense of arrival when you enter from the front of the building and confront a wall, and any electrical service has to be attached to the outside of the walls.
Mr. Ferrucci reviewed the proposed plans for each floor level.
Mr. Rollett said the cost of the project was developed in June 2006 and includes an escalation factor over the next couple of years. The project is estimated at $19,500,000.00, which includes $16 million in actual construction costs and $3.5 million in soft costs, which include relocating employees while the work is being performed.
Mr. Rollett stated that the committee spent years looking at different ways to move forward with this project, including a public private partnership. It looked like there was a potential 10 to 15% savings over conventional construction manager type costs, which Torrington has historically done in the past. The committee talked to a number of key players in the industry. They hired accountants to obtain hard data that could document whether or not the city would derive a true savings from a public private partnership so it could be considered as a viable option. However, none of the companies could substantiate that a true savings would be derived through this method of construction. The accountants were unable to furnish the committee with any concrete data stating that it was a good
idea. The committee was also informed that funds from Small Cities will not be eligible through this concept. The committed decided that it wasn’t a viable option.
Although the committee’s charge was to look at renovating City Hall, the construction manager was asked to look at several different scenarios. They considered demolishing City Hall and rebuilding it at the current site and rebuilding it elsewhere. Both scenarios were in the $24 million range, however, building elsewhere did not include land acquisition.
To rebuild on this site keeps City Hall in a prominent location, which is easily accessible to the public. Parking is an issue, and will continue to be so with the proposed renovations. The demolition of this building may not be possible because it’s listed on the National Historic Register. If it was possible, a historic replication in the reconstruction would be sought, adding additional costs, and the reconstruction of City Hall could never match the structure that presently exists. If a different site was chosen, the city would be left with a 70-year-old building that we may not have a use for. It’s unlikely that someone would purchase this building and put millions into renovation.
There might be some savings over the efficiency of new construction versus trying to reconfigure existing space. However, even if the square footage of new construction could be dropped by 10 or 15%, the cost would still be in excess of $20 million.
The funding recommended is primarily through public bonding. The committee is asking the Board of Finance to support the project and adopt a Resolution to authorize the bonds and notes, and move forward with the project at a cost of $19.5 million. Some Small Cities funding is expected. This recommendation will be forwarded to the City Council whereby they will also adopt similar Resolutions and set a date for the referendum.
Delaying the project by several years will result in a 20 to 30% increase in cost. Once the referendum date is set, the Building Committee will work diligently to educate the public. Construction would begin in the fall of 2007 and be completed by the spring of 2009.
Mayor Bingham referred to an e-mail he received from Mr. Cornish. The memo included the following:
“With respect to the resolution to support the appropriation of $19.5 million for renovation of City Hall, I have two concerns:
a) While this recommendation was the charge of the committee and is a well thought out approach to much needed City Hall code compliance upgrades, is it the only and best alternative?
b) How does this project fit in with the $8 million financing requirement for Phase 1 & 2 of the downtown revitalization plan, as well as the ‘yet to be determined’ Phase 3 financing required to move the fire headquarters to a new location? A capital bonding program for these projects weighed against the current debt service obligations of the City seems advisable.”
Mayor Bingham opened the meeting to questions and comments from the board.
Mr. Zeller inquired about the size of the new Auditorium, the current costs in the proposal, and about contingency monies for unforseen expenses.
Mr. Rollett stated that the new Auditorium will be about half the size of the present one, and city schools could be used if more room is needed.
Mr. Homes, Construction Manager from O & G Industries, stated that costs were brought up to date in June and that they forecasted forward the best they could for the next couple of years. He also stated that a contingency was built-in because the estimates are based on conceptual drawings at this time, and for unknowns within the building, as well as escalations of costs.
Mr. Zeller inquired about the debt service for this project.
Mr. Rollett stated that the impact would range from a low of ½ mill to a high of just over a mill throughout the life of the twenty year bond.
Mr. Nichol inquired whether the building would be set for a while after the renovations and improvements are done, and whether they were expecting unforeseen things that might drive the costs upward.
Mr. Rollett said the committee was not aware of anything; however, there is no guarantee. The committee believes the estimates are very conservative and they are confident with their numbers.
Mr. Bushka inquired whether the total cost could be less than $19.5 million.
Mr. Rollett stated that was possible. Once they move forward and get cost estimates based on the actual design, they will bond the exact amount needed, but they can only bond “up to” what’s authorized. They are confident that Small Cities funding and utility grants will be available. Mr. Rollett noted they have a CL&P Account Executive on their Buildings Committee who will make certain the city uses every utility grant available.
Mr. Farley inquired about parking, and whether the 10%, or $1.6 million, was standard for architectural fees.
Mr. Rollett indicated parking will remain a problem. Several additional spaces will become available behind the building when the Traffic Department is moved out, but it will not be enough to provide what is needed. Parking behind St. Francis church will still be used.
Mr. Holmes said the $1.6 million, or 10%, was the standard fee and added that it included engineering services as well as architectural fees.
Mr. Rollett indicated that the contracts with Fletcher Thompson and O & G Industries for architectural and construction services have already been executed, pending a successful resolution.
Mr. Zeller inquired about the $15,000.00 cost to hold a referendum.
Mr. Rollett stated that several costs will be incurred prior to any bonding; i.e. the referendum. They will initially be funded by the city, then built into the project at a later date. Should the referendum fail, the city will continue to bear its cost.
Comptroller Alice Proulx stated the $15,000.00 for the referendum would have to come from Contingency since it’s not a budgeted expense.
Mr. Farley asked Mr. Rollett if the building committee had a back up plan should the referendum be defeated.
Mr. Rollett stated that he would piece meal the renovation work.
Mr. Farley commended the Building Committee for their hard work, but added that he wasn’t getting good feedback from people he was talking to.
Member of the Building Committee Marie Soliani stated, the key to a successful referendum is to educate the public about the condition of City Hall. She said City Hall deserves to be brought back to what it was when it was originally built, not only for the employees, but for everyone who walks through the doors to conduct business. She hoped the Board of Finance would give the Building Committee the chance to educate the public on the need to renovate City Hall.
Mr. Farley said there was no question that City Hall has to be renovated. His concern was that the past few years have been financially difficult because of all the projects the city has undertaken.
Mrs. Soliani said the committee waited to bring this project to the public after the schools had been addressed. In the meantime, city hall continues to deteriorate.
Mr. Bushka asked Mr. Rollett if he thought the state would step in to mandate some of the major repairs to bring the building up to code and ADA requirements, should the referendum fail.
Mr. Rollett said yes. The city has already paid fines due to the lead and asbestos in the building. Spaces in the building are actually sealed off because of lead issues. He has been piece mealing projects to accommodate OSHA. The same issues have arisen with the Fire Marshal at the State level. The state won’t pursue anything as long as we have an active program and an active committee who plans to do something. Mr. Rollett is certain that the state will revisit the matter should the referendum fail, and he doesn’t know what the answer will be. That will be a major problem for the city. It’s possible we will face a City Hall that will be closed. That’s part of educating the public.
Building Official Brett Zuraitis indicated that sooner or later, something has to be done with this building. Because it is a public building it will have to be brought up to ADA standards as soon as a section of the building is worked on. He stated that the city could end up paying as much or more piece mealing the project than doing the entire project at one time.
MOTION TO ADOPT RESOLUTION #1805
Mr. Zeller made a motion to adopt a Resolution recommending the appropriation of $19,500,000.00 for the Torrington City Hall Renovation and Improvement and City Barn Site Vehicle Garage Construction Project. Mr. Farley seconded the motion. On a roll call vote, Mr. Nichol, Mr. Zeller, Mr. Farley, and Mr. Bushka voted in favor of the motion. Unanimously approved.
RESOLUTION OF BOARD OF FINANCE
Torrington City Hall Renovation and Improvement and City Barn Site Vehicle Garage Construction Project
August 15, 2006
RESOLVED, that the Board of Finance recommends that the City of Torrington appropriate $19,500,000.00 for costs related to renovations and improvements to the Torrington City Hall, 140 Main Street in Torrington, and to construction of a three-bay vehicle garage at the City Barn site, 59 Winthrop Street in Torrington with related storage, work space and other facilities. The City Hall portion of the project is contemplated to include rebuilding of the central portion of the building to provide a usable basement and three floors of office space located around a central square and introduce natural light into the building center, installation of a new elevator, roof replacement, HVAC systems replacement and improvements, flooring, ceiling, mechanical, lighting and electrical system upgrades, telecommunications upgrades,
security system installation, life-safety and code compliance improvements including installation of fire sprinklers, accessibility/ADA compliance improvements, indoor air quality improvements, building leak and mold abatement, window replacement, hazardous materials abatement, parking lot and other site improvements, and other project-related improvements and work, while retaining key architectural features of the building including the facade, main marbled corridors and the grand central staircase. The City Hall and City Barn site vehicle garage portions of the project are contemplated to be completed substantially in accordance with the descriptions and conceptual plans included in the report entitled “City of Torrington - Municipal Buildings Project - Torrington City Hall” dated July 17, 2006 and prepared by the Municipal Buildings Committee. The Municipal Buildings Committee will be authorized to reduce or modify the scope of the project, and the entire
appropriation may be expended on the project as so reduced or modified. The appropriation may be spent for design, construction, acquisition and installation costs, related site and other improvements, equipment, furnishings, materials, technology infrastructure, moving, storage and other temporary relocation costs, traffic control costs, permit fees, survey and study costs, architect, engineering and other consultant fees, legal fees, net temporary interest and other financing costs, and other expenses related to the project and its financing.
FURTHER RESOLVED, that the Board recommends that the City authorize the issue of $19,500,000.00 bonds or notes and temporary notes to finance said appropriation and hereby approves the issue of such bonds or notes and temporary notes.
BUS: MAYOR & MEMBERS #1835
On a motion by Mr. Zeller, seconded by Mr. Farley, the board voted unanimously to consider business presented by Mayor Bingham and members of the Board of Finance.
Mr. Bushka informed the board that he attended a meeting on July 19th with Mike Michaud, Alice Proulx, Charlene Antonelli, Thomas Jerram, and Steve Nocera in regard to vehicle replacement. A fleet management consulting company will make a presentation to them in the near future on ways the city can save money on maintenance costs, purchase costs, etc.
P & G PEPPER #1910
A motion, second, and vote was taken on the P & G Pepper matter which was inadvertently omitted earlier. (Please refer to #050.)
On a motion by Mr. Farley, seconded by Mr. Zeller, the board voted unanimously to accept the Council’s request for the payments of $2,092.00, $3,416.76, $2,963.61, $4,860.04, and $3,182.54 from the Sanitary Sewer Capital Improvement Fund #490 to P & G Pepper Construction Services for various sewer line point repairs.
Mr. Farley pointed out that the city has new parking meters downtown and inquired whether they will fit into the plan to renovate downtown Torrington.
Mayor Bingham said it was his belief that they would fit in.
Mr. Nichol stated that the Waterbury Housing Fund, a group that furnishes about $8 million in rehabilitation loans was very successful, especially with blighted properties. He had the name of a contact person for the Mayor.
Mayor Bingham said he would follow up on it and set up a meeting.
Mr. Zeller indicated that repointing and replacing bricks at the Police Department will be a significant project for the city depending on how much work is done. The project was broken down into two stages. What’s immediately necessary and what should continue to be done. He already inquired whether there was any kind of warranty and they were going to check with the Building Department.
Mayor Bingham stated that the consultant hired to determine the extent of the repair work that will be required on the Police Department Building, helped Mrs. Antonelli write the bid specs and they should be available in the near future.
Mr. Zeller suggested looking at the other municipal buildings in town.
BUS IN SECTION B #2310
On a motion by Mr. Zeller, seconded by Mr. Farley, the board voted unanimously to consider business in Section B.
EXECUTIVE SESSION #2320
On a motion by Mr. Zeller, seconded by Mr. Bushka, the board voted unanimously to go into Executive Session at 5:04 p.m. to discuss the reappointment of Robert Crovo, Tax Collector, and renegotiate his contract for a term 2007 to 2011.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
On a motion by Mr. Zeller, seconded by Mr. Farley, the board voted unanimously to reconvene into Open Session.
On a motion by Mr. Bushka, seconded by Mr. Zeller, the board voted unanimously to adjourn at 5:50 p.m.
Ernestine Yuille Weaver
Corporation Counsel
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