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