MINUTES ADOPTED AS PRESENTED 09/07/2010
ENFIELD TOWN COUNCIL
MINUTES OF A SPECIAL MEETING
MONDAY, AUGUST 2, 2010
The Special Meeting of the Enfield Town Council was called to order by Chairman Kaupin in the Council Chambers of the Enfield Town Hall, 820 Enfield Street, Enfield, Connecticut on Monday, August 2, 2010. The meeting was called to order at 5:30 p.m.
ROLL-CALL – Present were Councilmen Bosco, Dumont, Edgar, Hall, Kaupin, Keller, Kiner, Lee, Mangini and Nelson. Councilman Crowley was absent. Also present were Town Manager, Matthew Coppler; Town Clerk, Suzanne Olechnicki
DISCUSSION RE: RESOLUTION REGARDING ROAD 2010
Chairman Kaupin explained this involves the four resolutions that the Council would act upon after the Public Hearing.
Mr. Coppler stated the big question involves the bonding part of this. He explained in 2005, the Town had a $23 million dollar project with $19 million dollars bonded, and the balance was to be provided by the General Fund. He noted he’s unsure if the Town will be able to put in the same type of money within a four to five year period as was done in the past. He stated the $19 million dollars that the Town bonded amounts to about $1 million dollars in debt retirement. He noted the same type of situation, in terms of interest rate, is about $6 million dollars more if they’re going with a $25 million dollar project. He stated in that case the yearly payments would be between $1.5 and $1.6 million dollars. He noted this figure also depends on the interest rate.
He explained the Council has tried to handle debt by layering it, i.e., as debt comes off, they’re able to add debt back on so there’s not a big impact on the General Fund. He questioned if the Council feels comfortable bonding the whole $25 million dollars, which is staff’s recommendation, or does the Council prefer to do a portion in bonding as was done in previous years, and a portion coming from the operational budget every year for five years.
Councilman Mangini stated her belief it might be more feasible to do a complete bonding project, rather than taking funds from the operational budget. She stated her understanding the Town has a good bond rating. Mr. Coppler agreed that Enfield does have a good bond rating.
Councilman Kiner questioned what bonding projects are coming off the books within the next ten years. Mr. Coppler indicated he will provide that information.
Councilman Hall stated with the interest rates as they are right now, this is the time to borrow if they’re going to borrow.
Councilman Nelson stated his belief they need to go forward with the road program since there are still many roads left in dire need of construction. He agreed with Councilman Hall and suggested they look at a ten-year project to take advantage of the great interest rates at this time.
Chairman Kaupin questioned whether Councilmen believe there should be a general fund contribution above the bonding. Councilman Nelson stated his belief they should keep paying what they’re paying out of the General Fund.
Chairman Kaupin explained that when they started the Roads 2000 project ten years ago, the thought process was that the Town needs to make an annual financial contribution to the maintenance of the roads. He suggested doing $25 million in bonding plus the annual commitment that the Town has made for roads for the past ten years. He noted he would not want to get to the point where road maintenance is solely dependent upon bonding.
Councilman Hall stated she would rather bond the entire amount. She noted she would not necessarily include the General Fund money within the referendum because it ties up that money. She agreed with the philosophy of keeping that money in a CIP line item for roads, and then bond as much as possible to take advantage of the current interest rates.
Councilman Nelson stated his preference to lock the Town’s money into the road referendum to be sure it goes towards roads.
Councilman Hall stated she supports putting the money toward the continuing upgrades and maintenance of the roads. She noted originally, when they did the Roads 2000 referendum, the interest rates were higher, and that was one of the main factors why they decided to supplement from the General Fund. She agreed they should continue including money over and above the bond issue to keep roads maintained.
Councilman Lee questioned with what baseline $25 million dollars becomes the estimate. He recalled a chart displayed by VHB recently that showed the average ratings of the roads over time and the annual investment in increments that it would take to continue improvements. He questioned if that $25 million dollars was based on the average of roadwork today, or is there something more tangible. Mr. Coppler responded that’s based on the current rate and what the modifier number might be over a five-year period.
Councilman Lee stated he likes the idea of taking advantage of the lending rates on bonds, but agrees they need to maintain the commitment to the on-going maintenance.
Mr. Coppler stated at this time actual bids are coming in about 35% less than engineering estimates. He stated his belief they are still using higher numbers to be on the safe side.
He noted he would try to be more aggressive to get as much done as early on as possible, and they may see they’re getting a lot of the work done in the first three years, and the last two years would show less work being done.
Councilman Lee stated he would like to know at what point maintenance tasks get plugged into the new road program. He questioned if that’s something that they would keep off line and keep within DPW and finance it to a higher degree, or does this get worked into the project.
Mr. Coppler stated to meet the criteria in order to sell bonds, the project has to have a certain life expectancy. He noted crack sealing might not meet that criteria. He assumed they’d have to handle crack sealing within the Town’s budget, i.e., money into CIP every year or putting it into the operational budget for Highway.
Councilman Lee voiced his support of doing as much of the $25 million as possible within the bond.
Councilman Mangini questioned if $25 million dollars will be enough to encompass maintenance, and how can they get a better ballpark on that figure. She stated her understanding they have to apply the money toward exactly what the text details, and they would not be able to use that money for items unrelated to roads. She suggested adding language such as, “for reconstruction, maintenance and repair of various roads”.
Mr. Coppler stated based upon the presentation by VHB, they indicated the figure would be around $41 million dollars if the Town was very aggressive and did all the work that needed to be done in five years. He noted the recommendation was based on the ability of getting those roads done within a five-year period. He explained there’s a lot of work involved in doing all the bids, and there’s a limit to what can physically be done in a five-year period. He stated on the affordability side, they felt $25 million dollars allows the Town to meet their other obligations in a declining revenue stream.
Councilman Mangini questioned whether language would be included to address maintenance. Mr. Coppler stated in order to pass bond counsel, maintenance funding should come from General Fund monies and not bond monies.
Councilman Dumont stated her belief they should try to bond as much as possible. She agreed they should do some funding for the next five years out of the General Fund as was done in the past.
There was a consensus that the referendum will include $25 million dollars in bonding, plus an additional contribution from the Town’s General Fund every year as was done over the past 10 years.
Chairman Kaupin questioned if the Town Manager and Director of Finance are comfortable with the $25 million dollar bonded figure based on future debt payments. Mr. Coppler responded yes. Chairman Kaupin questioned what General Fund contribution the Town Manager feels comfortable with on a yearly basis. Mr. Coppler referred to LOCIP funds and noted for the foreseeable future, the Town will be getting about $300,000 to $350,000 every year, and there are only a certain number of projects for which LOCIP monies may be used. He recommended using LOCIP money for crack sealing or other roads that aren’t part of the road referendum. He noted one drawback is that those monies could be used at the discretion of the Town Council on any given year, therefore, it could be redirected for one of the other purposes, i.e., at one time those monies were spent on basketball and tennis courts.
Chairman Kaupin stated Roads 2000 and 2005 projects were successful because the Town made a financial commitment on the question. He noted he wants the Town to make a commitment to the roads. He added he does not mind bonding $25 million dollars, however, he would not use the LOCIP figure. He noted he would rather hand-tie future Councils and Managers so that there’s a commitment to road infrastructure and road improvement.
Mr. Coppler suggested $.5 million dollars per year.
It was the consensus of the Council to go with $25 million dollars in bonding plus an additional $2.5 million dollars from the General Fund, therefore, the referendum question would be $27.5 million dollars over five years.
Chairman Kaupin stated in order for the public to support any referendum, they need to know what the cost will be. He noted they need to show the voters the debt payment in the current fiscal year and how it’s changing based on current debt load, and when $25 million in bonding is added, they will see the final impact. He noted figures should be based on current dollars, current mill rates, and the current budget so the voters understand the increase to the bottom line number per year is a million dollars, which equates to one-third of a mill. He emphasized the need to get that information out prior to the public hearing and posted on the Town’s website.
RESOLUTION #1022 by Councilman Lee, seconded by Councilman Mangini.
WHEREAS, certain roads within the Town of Enfield are in need of maintenance, repair or reconstruction; and
WHEREAS, the Enfield Town Council wishes to provide funding for this maintenance, repair, or reconstruction; and
WHEREAS, the Enfield Town Council wishes to seek input on this project from the public.
NOW, THEREFORE, BE IT RESOLVED, that the Enfield Town Council does hereby schedule a Public Hearing to be held on August 23, 2010 at 5:30 p.m. in the Enfield Town Hall Council Chambers, 820 Enfield Street, Enfield, Connecticut in order to allow public comment on the proposed “Reconstruction and Repair of Various Town Roads and Roadside Element.”
AMENDMENT #1 by Councilman Nelson, seconded by Councilman Dumont to change the start time of the meeting to 7:00 p.m.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared AMENDMENT #1 adopted 10-0-0.
Upon a ROLL-CALL vote being taken, the Chair declared RESOLUTION #1022 adopted 10-0-0.
MOTION #1023 by Councilman Nelson, seconded by Councilman Mangini to go into Executive Session.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #1023 adopted 10-0-0, and the meeting stood recessed at 6:24 p.m.
EXECUTIVE SESSION
The Executive Session of the Enfield Town Council was called to order by Chairman Kaupin at 6:26 p.m.
ROLL-CALL – Present were Councilmen Bosco, Dumont, Edgar, Hall, Kaupin, Keller, Kiner, Lee, Mangini and Nelson. Also present were Town Manager, Matthew Coppler; Town Clerk, Suzanne Olechnicki
Personnel Matters, Pending Litigation and Real Estate Negotiations were discussed with no action or votes being taken.
Chairman Kaupin adjourned the Executive session at 6:37 p.m. He reconvened the Special Meeting at 6:38 p.m. and stated during Executive Session, Personnel Matters,
Pending Litigation and Real Estate Negotiations were discussed with no action or votes being taken.
ADJOURNMENT
MOTION #1023 by Councilman Nelson, seconded by Councilman Mangini to adjourn.
Upon a SHOW-OF-HANDS vote being taken, the Chair declared MOTION #1023 adopted 10-0-0, and the meeting stood adjourned at 6:39 p.m. |