Loading...
1984/11/19 -~ EXECUTIVE BOARD MINUTES ~' NOVEMBER 19, 1984 ~The meeting was called to order at 7:35 by Mayor Warren E. Kingsbury. Also in attendance: Deputy Mayors Robert A. Argazzi, Thomas W. Ward, Jr.; Gary Clinton, Finance Director; Domenick Scerra, Town Treasurer; Joanne Ward, Town Clerk; Joseph Adinolfi, Bonding Agent; Roderick Hewitt, Engineer; Morgan Seelye, Director of Public Works; Members of the Finance Board; Thomas Shiet, Reporter. Mayor Kingsbury introduced the topic of the town-wide water project. He announced that he would like to take action in order to appropriate monies for preliminary engineering preparatory work and addressed Mr. Adinolfi regarding the bonding for the project. Mr. Adinolfi~suggested two options if we expand our water system as a joint project with the Town of Meriden: 1. Interlocal agreement - Persuant to Sections 7-339-A - 7-339-L of the Gen- eral Statutes. This is a process by which an advisory board is created, a contract is ironed out between the two communities, a proper subject matter of an interlocaI agreement is the supply of water, and once that agreement is ironed out between the two communities, the agreement itself is subject to bonding so that if You agree that ifs a 50-50 proposition, or 60-40, you can go out for permanent bonding, based on the interlocal agreement. Each municipality can issue bonds up to the percentage required under the interlocal agreement. There are questions of ownership with re- gards to the actual facility .that is created and questions of where the ~'~ plant should be located in the twocommunities and is a ponderous procedure '!,.~,which requires public hearings, approval of local legislative bodies, and in general is a cumbersome process which should be avoided. Mr. Adinolfi felt that if Berlin'had the leverage to avoid the above option, it should do so. Berlin. very likely,~ has the leverage, since the water will come from this town. 2. Berlin retains possession, control and ownership of all its equipment, and sells~'w&~er to Meriden. Under the terms of this contract, the city of Meriden would have to pay the town of Berlin over a 20 year period, what- ever capitol costs are allocated to Meriden. Under Section 83-513, any municipality operating a water Works can finance the capitol project issuing notes in anticipation of bonds and is permitted to roll those notes without paydown for the construction period or five years, whichever is shorter, so that it can stay on temporary notes. For example, if it takes three years to finish the capitol project, it can roll those notes for three years without paydown, and then go on a rollover program for a 15 year period provided the net revenue from the water works system permits a retirement of the then principal at a rate of 1/15th of the total out- standing. The great value of this is that you are on short term paper for a total of 18 years, if takes three years to build the project, or if it takes 5 years to build the project, you are on short term paper for 20 years. Historically, short term paper is considerably less expensive _ to a municipality than long term paper.~ Date of Typing: November 21, 1984 EXECUTIVE BOARD MINUTES -2- NOVEMBER 19, 1984 Mr. Adinolfi pointed out that Meriden would pay the'capitol cost from the execution of the agreement on a. 1/20th basis. You can take those principal payments and pay down the outstanding debt on the receipt of each principal payment and you would charge Meriden on a pass-through basis the cost of the money (i.e. i~ we sold $6 million worth of paper at 6.08% there would be no step up in the cost of the money, it would simply be on a~'pass-through basis, to avoid the argument that if we went into an interlocal agreement we could borrow money on the basis of our own credit),~ ~.~ In short, Berlin will own all capitol assests. Meriden will have the right to purchase water at the current rates. Mr. Adinolfi recommended using this option, especially since short term notes are considerably less expensive. Mr. Argazzi asked what the highest short term note rate could be. Mr. Adinolfi explained that it has gone as high as 9.17%, due to certain conditions. The notes can be rolled over each year, for 15 years, as the statute limits the bonding to 20 years. Berlin can pay off the debt with Meriden's capitol payment by treating it ~ trust dollars. Mr. Bernardi asked if we were responsible for capitol assets in Meriden. Mr. Adinotfi replied no. Meriden would bond its portion of interest rates. Mr. Ward commented on some technicalities to be written into the final contract such as a default clause. It was noted that, while the money to pay the debt can come from the general fund, it must be run through the Water Control Commission books. Mr. Hewitt then discussed the engineering costs. He recommends a $250,000.00 appropriation for preliminary engineering including mapping. Aerial photographs should be taken, at a cost of $130,000.00, since our existing maps are inadequate. They will be used for installing water lines in the streets. Installing the 21-24" pipes will be responsible for the bulk of the costs. The maps should be 1 to 40 in scale as opposed ' to out maps of 1 to 350. The process includes going out into the field and putting out control points, both for horizontal control and for ele- vation for 12 miles of routes. Buying the negatives for maps can be eq- ually expensive and will not be the right scale. Upon motion by Mr. Argazzi, seconded by Mr. Ward, it was voted to rec- ommend the Board of Finance approve the appropriation and place on the call of the TOWN MEETING of $250,000.00 for engineering and plan pre- paration for the Town Wide water system through the bidding process. MOTION CARRIED. UNANIMOUS. The Mayor presented a memorandum of agreement between the Town, Fire District and Louis A. Carta, whereby Mr. Carta agrees to purchase two parcels of real estate situated on the easterly'and westerly sides of FourRo~.Rd.and the Town, as owner of Four Road Road agrees to 'recOnstruct EXECUTIVE BOARD MINUTES NOVEMBER 19, 1984 -3- at its sole cost and expense, that portion of Four Rod Road substan- tially where shown on the map, the Fire District agrees to furnish the pipe and Mr. Carta agrees to pay $6.00 per running foot of water main installed in the reconstructed portion of Four Rod Road having frontage on Carta's property and/or property retained by Balocki on the westerly side of said reconstructed roadway. Upon motion by Mayor Kingsbury, seconded by Mr. Ward, it was voted to approve the above agreement between Mr. Carta, the Fire District and the Town. MOTION CARRIED. UNANIMOUS. Upon motion by Mr. Ward, seconded by Mayor Ktn~sbury, it was voted to approve Mr. Clinton's recommendation that the Town use the paddy wagon for recreational needs with no additional insurance cost. MOTION CARRIED. UNANIMOUS. Upon motion by Mr. Argazzi, seconded by Mr. Ward, it was voted to employ Mr. Scott B. GaEmen as Director of the Co~m~unity Center, ef- fective immediately, at a salary of $13,000.00. MOTION CARRIED. UNANIMOUS. Upon motion by Mayor Kingsbury, seconded by Mr. Argazzi, it was voted to confirm the award of the sewer meter contract to Mr. Brian DiMartino at a cost of $5,340.00. MOTION CARRIED. UNANIMOUS. Upon motion by Mr. Argazzi, seconded by Mr. Ward, it'was voted to approve payment to Mr. DiMartino in the monthly estimate for instal- lation work, project WS 84-08 for the amount of $9,468.65. MOTION CARRIED. UNANIMOUS. Upon motion by Mayor Kingsbury, seconded by Mr. Argazzi, it was voted to approve the refund of excess tax payments to: Grace LaVorgna Marj orie Fuller James D 'A_m._ato $6.46. $766.15' $19.83 from account #258, tax refunds, as excess payments, as recommended by Francis J. Motyka, Tax Collector. MOTION CARRIED. UNANIMOUS. Upon motion by Mr. Argazzt, seconded by Mr. Ward, it was voted to approve the minutes of the October 29th, 1984 meeting. MOTION CARRIED. UNANIMOUS. There being no further business to come before the Executive Board, the meeting adjourned at 11:00 P.M. Respectfully submitted, Gail Petanovttch Secretary