City Council

JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 A regular meeting of the Council of the City of Norwich was held April 19, 2011 at 7:35 PM in Council Chambers. Present: Aldermen Desaulniers, Braddock, Caron, Hinchey, Popovich, Nash and Mayor Nystrom. City Manager Bergren and Corporation Counsel Michael Driscoll were also in attendance. Mayor Nystrom presided. Ald. Braddock read the opening prayer and Ald. Desaulniers led the members in the Pledge of Allegiance. City Manager Bergren gave his report as follows: DATE: April 19, 2011 TO: Mayor Peter A. Nystrom & Council Members FROM: Alan H. Bergren, City Manager SUBJECT: City Manager’s Report 1. Budget Hearings Emergency Services budget hearings with the Council will be held next Saturday, April 30th at the Yantic Volunteer Fire House from 8:00 A.M. to 12:00 P.M. 2. Downtown Clean-Up Day The Mayor has organized a downtown clean-up day to be held on May 21st from 8:A.M. to 12:00 P.M. For more information or to volunteer, please call the Mayor’s office at (860) 823-3742. 3. Upcoming Events/Meetings ♦ The next Team Norwich meeting will be held on Saturday, May 7th from 9:00 A.M. to 12:00 P.M. at the City Fire House. ♦ The Mayor’s next meeting with the public will be held on Saturday, May 14th from 9:00 A.M. to 12:00 P.M. at the Yantic Volunteer Fire House. For a complete schedule of the Mayor’s public meetings, please call the Mayor’s office at 823-3742. 4. Docent Program The docent program has started at City Hall. If you have a chance, stop by and say hello to our new volunteers in the information booth located on the first floor. Volunteers work in two hour shifts and begin at 8:30 A.M. Thanks to Alderman Braddock , Volunteer trainer/coordinator Karen Neeley, and Jill Brennan, from the City Manager’s Office, Bob Sewart and his staff from Building Maintenance and Leon Barnowski from Information Technology for their help in making all the arrangements. 5. Lincoln Portrait Contest The contest has closed and all entries will be on display beginning May 1st in the Norwich Arts Center gallery located at 60 Broadway. The judging and announcement of the winner will take place at a reception at the gallery on Sunday, May 1st from 2:00 to 4:00 P.M. The portraits will remain on display in the Norwich Arts Center gallery through the end of May. 6. Public Works Projects 1 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 Drainage work in advance of our paving program has begun, with resurfacing of the Cliff Street area tentatively scheduled to start on May 2nd. The Mohegan Park Road was closed last week for the season and will remain closed through October. 7. CCM Day on the Hill The Mayor, Comptroller and I met with our fellow municipal leaders at the Capitol on Wednesday, April 13th. Over 100 municipalities were represented. We met with the Lieutenant Governor and the Mayor spoke directly to her regarding the Governor’s support for the funding of municipalities. Mayor Nystrom called for citizen comment on resolutions. David Crabb, 47 Prospect St., opposes resolution 2. He thinks the Bulletins ad would have been more effective. The last time the Council passed this kind of resolution it cost the taxpayers $200,000 for windows. Sam Browning, 671 Scotland Rd., thinks we should have the Aliano group talk to Thayers to see if something can be worked out. He went over his list of questions that he passed out to the Council. Andy Depta, 105 Vergason Ave., is against resolution 2 as it stands. He thinks it is premature and that we are rushing into this. Is it affordable or profitable? The City seems to want to be in the Real Estate business. What is the total cost before you get a return on your investment? Rodney Bowie, 62 Roosevelt Ave., agreed with the previous speakers being against resolution 2 and he stated that the City is not in the real estate business. JP Mereen, 22 Mediterranean Ln., is in favor of both resolutions. He stated that the Taste of Italy does an outstanding Job and he explained that the City Manager is only going to sit down and negotiate with this corporation. We need to look out for the common good. Keith Ripley, Meadow Lane, echoed the sentiments of previous speakers. The cart is way in front of the horse. How can we help keep the businesses that are downtown already? Resolution 2 needs to be tabled. Chris Dixon, 15 Parkwoods Dr., stated that we already own the land at the marina and for the City Manager to go in and cut a deal is premature. There are too many loose ends. Kathleen Murphy, 227 Boswell Ave., hopes the Council will find due diligence on resolution 2 before forging ahead. First thing we should do is make sure we have our checks and balances. Slow the pace down for the good of Norwich. Joanne Philbrick, 10 Elm Ave., opposes resolution 2. She said she is afraid to pick up a newspaper and see the headlines. She feels that Norwich is reactive instead of proactive. Economic development is the fear of the unknown. It’s premature. Bob Zarnetske, 15 Butternut Dr., urged the council to support the Taste of Italy. They have a proven track record of success because it works financially. Frank Jacaruso is in favor of the Taste of Italy. It started as a one time event and now it is their 20th year. 2 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 Joe Molcan, Hansen Rd., supports resolution 1. On resolution 2 he feels there should be an environmental study first. There are fuel tanks there. We should hold off on this and do a thorough study. Marvin Serruto, 100 Starr St., feels we should proceed with caution on the marina. Hazardous material could be a snake coming back to bite us. Table it and investigate. Brian Kobylarz, Hobart Ave., wants the council to approve the City Manager being able to negotiate and we need to keep our options open. Mark Landry, Washington St., believes that as a taxpayer it is hard to carry this burden as there are too many unknowns. There being no further speakers, Mayor Nystrom declared citizen comment period closed. Upon motion of Ald. Hinchey, seconded by Ald. Braddock, it was unanimously voted to adopt the following resolution introduced by Mayor Nystrom: WHEREAS, the Italian Heritage and Cultural Committee of Norwich will once again sponsor ”The Taste of Italy” at the Howard T. Brown Park on September 10, 2011; and WHEREAS, “The Taste of Italy” allows the Italian Community to share its cultural heritage with the Norwich Community and permits festival goers to enjoy the food, music and entertainments of Italy; and WHEREAS, the Italian Heritage and Cultural Committee of Norwich has requested permission to sell beer and wine during the festival. NOW, THEREFORE, BE IT RESOLVED, that pursuant to Section 13.14.2 of the Norwich Code of Ordinances, the City Manager is authorized to grant the Italian Heritage and Cultural Committee of Norwich permission to serve and sell beer and wine at “The Taste of Italy” festival to be held on September 10, 2011 at the Howard T. Brown Park subject to satisfactory proof that the Italian Heritage and Cultural Committee of Norwich has complied with applicable regulations of the State Liquor Commission. Upon motion of Ald. Desaulniers, seconded by Ald. Braddock, it was voted 6-1 with Ald. Nash voting in opposition, to go into Executive Session for the purpose of discussing a lease of property owned by the City of Norwich, an assignment of said lease to the City of Norwich, a sublease of a portion of said property, and the acquisition of real and personal property by the City of Norwich when publicity regarding the same would cause a likelihood of an increased price to the City of Norwich. This discussion is likely to involve a review of commercial and financial information provided to the Council in confidence by the holder of interest in said property and not required to publically disclose pursuant to the provisions of Connecticut General Statutes § 1-210(b)(5)(B) with respect to said interest. City Manager Alan H. Bergren, Deputy Comptroller Josh Pothier, Corporation Counsel Michael E. Driscoll, Planning Director Peter Davis, NCDC Executive Director Robert Mills, General Manager of the Department of Public Utilities John Bilda and Director of Public Works Barry Ellison shall be asked to participate during all or portions of this Executive Session at the request of the City Council. 3 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 The City Council shall continue in Executive Session for the purpose of discussing the performance and evaluation of City Manager Alan H. Bergren, provided that City Manager Alan H. Bergren does not require that discussion be held at an open meeting. City Manager Alan H. Bergren shall be asked to participate during all or portions of this Executive Session at the request of the City Council. The Council was in Executive Session from 8:25 PM until 9:32 PM at which time Mayor Nystrom stated no votes were taken. Upon motion of Ald. Braddock, seconded by Ald. Hinchey, it was voted 5-2 with Ald. Nash and Caron voting in opposition, to adopt the following resolution introduced by Mayor Nystrom: WHEREAS, the City of Norwich and the American Wharf Development Corporation entered into a Development Agreement on or about January 21, 1987 whereby the American Wharf Development Corporation developed property located at the southern end of Hollyhock Island and certain adjacent property as a marina in accordance with the terms and conditions of the Development Agreement; and WHEREAS, on January 21, 1987 the City of Norwich and the American Wharf Development Corporation entered into a 99 year lease to run from January 21, 1987 whereby the City leased the property for this development to the American Wharf Development Corporation; and WHEREAS, said lease and/or said Development Agreement permitted leasehold financing for the purpose of said marina development and the acquisition, maintenance, repair and replacement of structures and utilities located or placed thereon and personal property used in connection with the marina (hereinafter “the improvements”). NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH, that City Manager Alan H. Bergren be and hereby is authorized and directed on behalf of the City of Norwich to negotiate with representatives of the America Wharf Development Corporation for the purpose of receiving an assignment of the remaining term of leasehold interest of the American Wharf Development Corporation in said property; of acquiring title in the City of Norwich to such of the improvements located thereon as he determines it to be in the interest of the City of Norwich to acquire; and to draft such agreements as may be necessary to accomplish this and to present the same to the Council of the City of Norwich for its consideration and action thereon. BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH, that City Manager Alan H. Bergren be and hereby is authorized in such negotiations to propose such terms and conditions with respect to such agreement or agreements as in his opinion best protect the interests of the City of Norwich, whether or not such terms and conditions are expressly stated in this resolution; but to include in said agreement a requirement that any mortgage or security interest applicable to the assets of the American Wharf Development Corporation on said property, including but not limited to the leasehold interest and the improvements, be released prior to any transfer of the same to the City of Norwich. Upon motion of Ald. Braddock, seconded by Ald. Hinchey, it was voted 4-3, with Ald. Nash, Caron and Popovich voting in opposition, to introduce, waive the reading and set a public hearing for May 2, 2011 for the following ordinance introduced by Mayor Nystrom: 4 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 AN ORDINANCE APPROPRIATING $675,000 FOR THE PURCHASE OF NORWICH MARINA INTERESTS NOT OWNED BY THE CITY, INCLUDING INTANGIBLE, PERSONAL, LEASE AND REAL PROPERTY RIGHTS, AND AUTHORIZING THE ISSUE OF $675,000 BONDS OF CITY AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH: Section 1. The sum of $675,000 is hereby appropriated to acquire (1) all premises and interests in real property currently owned by the City and leased to American Wharf Development Corporation, including but not limited to: (i) the parcel known both as ‘One American Wharf’ and as “46 West Main Street” and shown on the Norwich Tax Assessment Map 101 as Lot 50 consisting of 3.25 acres in total, more or less; and (ii) the parcel known as 150 Chelsea Harbor Drive and shown on the Norwich Tax Assessment Map 102 as Lot 59; and (2) that parcel known as 38 West Main Street and shown as Lot 49 on said Map 101, which parcel is currently owned in fee by American Wharf Development Corporation and (3) other real property, improvements, fixtures, personalty and intangible property in the marina area or located on or used in connection with the above parcels and used in the operation of the marina business, and for engineering, design, administrative, advertising, printing, legal and financing costs related thereto. The City Manager is authorized to enter into contracts consummating the purchase and the terms and purchase details thereof. Section 2. The total estimated cost of the project is $675,000. No portion of the project cost is expected to be paid from sources other than the proposed bond issue. The estimated useful life of the project is twenty years. The project is a general benefit to the City of Norwich and its general governmental purposes. Section 3. To meet said appropriation $675,000 bonds of the City, or so much thereof as may be necessary for said purpose, may be issued, maturing not later than the twentieth year after their date, or such later date as may be allowed by law. Said bonds may be issued in one or more series as shall be determined by the City Manager and the Comptroller, and the amount of bonds of each series to be issued shall be fixed by the City Manager and the Comptroller, provided that the total amount of bonds to be issued shall not be less than an amount which will provide funds sufficient with other funds available for such purpose to pay the principal of and the interest on all temporary borrowings in anticipation of the receipt of the proceeds of said bonds outstanding at the time of the issuance thereof, and to pay for the administrative, printing and legal costs of issuing the bonds. The bonds shall be in the denomination of $1,000 or a whole multiple thereof, be issued in bearer form or in fully registered form, be executed in the name and on behalf of the City by the manual or facsimile signatures of the City Manager and the Comptroller, bear the City seal or a facsimile thereof, be certified by a bank or trust company designated by the City Manager and the Comptroller, which bank or trust company may be designated the registrar and transfer agent, be payable at a bank or trust company designated by the City Manager and the Comptroller, and be approved as to their legality by Bond Counsel. They shall bear such rate or rates of interest as shall be determined by the City Manager and the Comptroller. The bonds shall be general obligations of the City and each of the bonds shall recite that every requirement of law relating to its issue has been duly complied with, that such bond is within 5 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 every debt and other limit prescribed by law, and that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon. The aggregate principal amount of the bonds, annual installments of principal, redemption provisions, if any, the date, time of issue and sale and other terms, details and particulars of such bonds, shall be determined by the City Manager and the Comptroller in accordance with the requirements of the General Statutes of Connecticut, as amended. In connection with the issuance of any bonds or notes authorized herein, the City may exercise any power delegated to municipalities pursuant to Section 7-370b, including the authority to enter into agreements moderating interest rate fluctuation, provided any such agreement or exercise of authority shall be approved by the City Council. In order to meet the capital cash flow expenditure needs of the City, the City Manager and Comptroller are authorized to allocate and reallocate expenditures incurred for the Project to any bonds or notes of the City outstanding as of the date of such allocation, and the bonds or notes to which such expenditures have been allocated shall be deemed to have been issued for such purpose, including the bonds and notes and Project herein authorized. Section 4. The issue of the bonds aforesaid and of all other bonds or notes of the City heretofore authorized but not yet issued, as of the effective date of this Ordinance, would not cause the indebtedness of the City to exceed any debt limit calculated in accordance with law. The principal and interest on the proposed issue are to be paid from property taxation to the extent not paid from other funds available for the payment thereof and the full faith and credit of the City are pledged to such payment. Section 5. Said bonds shall be sold by the City Manager and Comptroller in a competitive offering or by negotiation, in their discretion. If sold at competitive offering, the bonds shall be sold upon sealed proposals, auction or similar competitive process, at not less than par and accrued interest on the basis of the lowest net or true interest cost to the City. A notice of sale or a summary thereof describing the bonds and setting forth the terms and conditions of the sale shall be published at least five days in advance of the sale in a recognized publication carrying municipal bond notices and devoted primarily to financial news and the subject of state and municipal bonds. If the bonds are sold by negotiation the purchase contract shall be approved by the City Council. With respect to the receipt of original issuance premium or bid premium upon the sale of the bonds or notes herein authorized, the Manager and Comptroller are authorized, but not required, to apply original issuance premium and bid premium, if applicable, to fund any purpose for which bonds of the City are authorized to be issued, and such application shall reduce the amount of authorized and unissued bonds of the purpose to which the premium was applied, in the amount so applied. Section 6. The City Manager and the Comptroller are authorized to make temporary borrowings in anticipation of the receipt of the proceeds of any series of said bonds. Notes evidencing such borrowings shall be signed by the manual or facsimile signatures of the City Manager and the Comptroller, have the seal of the City or a facsimile thereof affixed, be payable at a bank or trust company designated by the City Manager and the Comptroller, be certified by a bank or trust company designated by the City Manager and the Comptroller pursuant to Section 7-373 of the General Statutes of Connecticut, as amended, and be approved as to their legality by Bond Counsel. They shall be issued with maturity dates which comply with the provisions of the General Statutes governing the issuance of such notes, as the same may be amended from time to time. The notes shall be general obligations of the City and each of the notes shall recite that every requirement of law relating to its issue has been duly complied with, that such note is within every debt and other limit prescribed by law, and that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon. The net interest cost on such notes, including renewals 6 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 thereof, and the expense of preparing, issuing and marketing them, to the extent paid from the proceeds of such renewals or said bonds, shall be included as a cost of the project. Upon the sale of said bonds the proceeds thereof, to the extent required, shall be applied forthwith to the payment of the principal of and the interest on any such temporary borrowings then outstanding or shall be deposited with a bank or trust company in trust for such purpose. Section 7. Resolution of Official Intent to Reimburse Expenditures with Borrowings. The City (the “Issuer”) hereby expresses its official intent pursuant to §1.150-2 of the Federal Income Tax Regulations, Title 26 (the ‘Regulations”), to reimburse expenditures paid sixty days prior to and after the date of passage of this ordinance in the maximum amount and for the capital project defined in Section 1 with the proceeds of bonds, notes, or other obligations (“Bonds”) authorized to be issued by the Issuer. The Bonds shall be issued to reimburse such expenditures not later than 18 months after the later of the date of the expenditure or the substantial completion of the project, or such later date the Regulations may authorize. The Issuer hereby certifies that the intention to reimburse as expressed herein is based upon its reasonable expectations as of this date. The Comptroller or his designee is authorized to pay project expenses in accordance herewith pending the issuance of reimbursement bonds, and to amend this declaration. Section 8. The City Manager and Comptroller are hereby authorized to exercise all powers conferred by section 3-20e of the general statutes with respect to secondary market disclosure and to provide annual information and notices of material events as enumerated in Securities and Exchange Commission Exchange Act Rule 15c2-12, as amended, as may be necessary, appropriate or desirable to effect the sale of the bonds and notes authorized by this ordinance. Section 9. It is hereby found and determined that it is in public interest to issue all, or a portion of, the Bonds, Notes or other obligations of the City as qualified private activity bonds, or with interest that is includable in gross income of the holders thereof for purposes of federal income taxation. The City Manager and the Comptroller are hereby authorized to issue and utilize without further approval any financing alternative available to municipal governments pursuant to HR1, “Making Supplemental Appropriations for Job Preservation and Creation, Infrastructure Investment, Energy Efficiency and Science, Assistance to the Unemployed, and State and Local Fiscal Stabilization, for the Fiscal Year Ending September 30, 2009, and for other purposes” (the “American Recovery and Reinvestment Act of 2009”), as the same may be reauthorized or reenacted, or analogous legislation, including but not limited to any ‘tax credit bond,” or “Build America Bonds” including Direct payment and Tax Credit Versions. Mayor Nystrom called for citizen comment. David Crabb, 47 Prospect St., commended the City Clerk, the Assessor and the Comptroller offices. He stated that the Chinese investment is to fast. If it seems to good to be true it is. Harry Ruley, Mass., wants closure on two relatives that were murdered in Norwich some years ago. He has documentation but doesn’t feel like anyone will listen to him. Joanne Philbrick, 10 Elm Ave., thanked everyone who gave their assistance with the blight issue she mentioned. She comes with an open mind to each meeting and she applauded Ald. Caron and Nash for voting against the ordinance concerning the marina. This is putting the cart in front of the horse once again. You need to be open and honest with the public. 7 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH APRIL 19, 2011 Andy Depta, 105 Vergason Ave., echoed Joanne’s feelings. Perception is everything. His concerns on resolution 2 was that he was always told you can’t negotiate in good faith without appropriation of some dollars. Beryl Fishbone, 19 Bliss Pl., told the council they will have to go home and look in the mirror and say I did the best I could. When someone comes to the City they should be brought to the Leffingwell museum to show what Norwich looked like in the past. You need to sell the vision of what the marina could be, not what it was. There being no further speakers, Mayor Nystrom declared citizen comment period closed. Upon motion of Ald. Braddock, seconded by Ald. Desaulniers, it was unanimously voted to adjourn at 9:32 PM. CITY CLERK 8