City Council

AGENDA – MEETING OF THE COUNCIL OF THE CITY OF NORWICH MAY 2, 2011 7:30 PM PRAYER PLEDGE OF ALLEGIANCE ADOPTION OF MINUTES: Meetings of April 4 & 19, 2011 PUBLIC HEARING 1. 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 SECOND READING AND ACTION ON ORDINANCE CITY MANAGER’S REPORT CITIZEN COMMENT ON RESOLUTIONS NEW BUSINESS – RESOLUTIONS 1. Relative to City Manager Bergren being authorized and directed to receive and record a quit claim deed from Laurel Realty Company conveying to the City of Norwich the fee title to Ridgewood Drive and a portion of Woodland Drive. 2. Relative to tentatively adopting the preliminary budget for Fiscal Year 2011-2012. 3. Relative to an extension of the agreement with Capehart Ventures LLC. 4. Relative to reducing the number and realigning precincts relating to voting. CITY CLERK  PUBLIC HEARING #1 AN ORDINANCE APPROPRIA TlNG $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 facsi.mile 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 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 ofthe 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 ofthe principal thereof and the interest thereon. The net interest cost on such notes, including renewals 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 I 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 HR 1, "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.  RESOLUTION #1 WHEREAS, a subdivision known as the Laurel Park subdivision has been developed pursuant to plans prepared in 1949, revised in 1958, and resubdivided in 1993; and WHEREAS, the streets known as Ridgewood Drive and Woodland Drive were constructed and are located within the subdivision and have been continuously used by the public as public streets since their construction; and WHEREAS, said streets created in said subdivision were to have been conveyed to the City of Norwich but the conveyance of all portions of the same has not yet taken place; and WHEREAS, the Laurel Realty Company, has delivered to the city a quitclaim deed conveying title to the land underlying Ridgewood Drive and the southerly portion of Woodland Drive, the legal descriptions of which are attached hereto as Exhibits A and B; and WHEREAS, the Department of Public Works has examined said streets and found them to have been adequately constructed in accordance with the requirements of the city, 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, subject to the approval of Corporation Counsel, to receive and record said quitclaim deed from the Laurel Realty Company conveying to the City of Norwich the fee title to Ridgewood Drive and that portion of Woodland Drive described herein and to cause such documents to be recorded on the land records of the City of Norwich and to execute, deliver, receive and/or record such other documents on behalf of the City of Norwich as may be necessary to effectuate said transfers. City Manager Alan H. Bergren  RESOLUTION #2 RESOLVED, that the proposed preliminary budget for Fiscal Year 2011- 2012, as amended by Exhibits A and B attached hereto, be tentatively adopted, with a public hearing scheduled for Monday, May 9, 2011 at 7:30 PM in the Council Chambers of City Hall. Mayor Peter A. Nystrom EXHIBIT A - Corrections to 2011-12 Proposed Budget Page # Department Line # Description Change in Expenditures 76-77 Assessor 80012 * Assessment Data Entry Clerk (salary in budget was $34,590 vs. $35,017 per CH 427 Employees contract) 76-77 Assessor 89999 * To adjust Fringe Benefits for correction in Assessment Data Entry Clerk's salary 69 84-85 City Clerk 80012 * Assistant City Clerk (salary in budget was $50,097 vs. $50,715 per CH Employees 618 contract) 84-85 City Clerk 89999 * To adjust Fringe Benefits for correction in Assistant City Clerk's salary 100 93-94 Police 80012 * Four Police Records Computer Operators (salary in budget was $34,590 vs. $35,017 1,708 per CH Employees contract) 93-94 Police 89999 * To adjust Fringe Benefits for correction in Four Police Records Computer Operators's 277 salary 99-100 Fire 80012 * Fire Code Clerk (salary in budget was $39,135 vs. $39,618 per CH Employees 483 contract) 99-100 Fire 89999 * To adjust Fringe Benefits for correction in Fire Code Clerk's salary 78 118-119 Recreation 80012 Recreation Maintainer II (Salary in budget was $44,425 vs. $44,825 per CH Employees 400 contract) 118-119 Recreation 89999 To adjust Fringe Benefits for correction in Recreation Maintainer II's salary 65 129-130 Senior Center 80011 To correct Senior Citizens Director salary. Salary was listed as $64,776 in the 2,269 Proposed budget, but it is $67,045 in the MEUI union contract. 129-130 Senior Center 89999 To adjust Fringe Benefits for correction in Director's salary 376 139-140 PW-Engineering 80011 To correct PW Director's salary. Salary in Proposed budget was listed as $98,800 2,080 (based on a 4% increase on $95,000). The PW Director's 2010-11 salary is $97,000 - a 4% increase on this amount is $100,880. 139-140 PW-Engineering 89999 To adjust Fringe Benefits for correction in Director's salary 336 157-158 Planning & Neighborhood 80012 To correct Code Enforcement Official's salary pursuant to 12/18/2009 Memorandum of 7,002 Services Agreement with City Hall Employees bargaining unit adjusting this position's salary to equal Assistant Building Official's. Salary in budget was $53,283 vs. $60,285 per MOA and CH Employees contract. 157-158 Planning & Neighborhood 89999 To adjust Fringe Benefits for correction in Code Enforcement Official's salary 1,159 Services 157-158 Planning & Neighborhood 80012 To adjust for one Administrative Secretary at full-time. The intent of the Proposed 16,650 Services budget was to reduce the hours of one of the Administrative Secretary's to 21 hrs/week as described in the Budget Message on page 5. The listing of positions on page 158 of the budget erroneously reduces both Administrative Secretaries to 21 hrs/week. 157-158 Planning & Neighborhood 89999 To adjust Fringe Benefits for adjustment of one Administrative Secretary to full-time 2,697 Services 157-158 Planning & Neighborhood 80012 * Two Assistant Building Officials (salary in budget was $59,550 vs. $60,285 per CH 1,470 Services Employees contract). 157-158 Planning & Neighborhood 89999 * To adjust Fringe Benefits for correction in Two Assistant Building Officials's salary 238 Services 168 Non-Departmental 80073 Savings in property, casualty, and other insurance policy premiums (20,000) Various All Departments 89999 Savings in projected Workers' Compensation claims and Second Injury Fund (18,502) assessments Net change in Expenditures - Increase/ (Decrease) - * - These positions from the City Hall Employees bargaining unit had increases in Grade level that were not included in the 2011- 12 Proposed budget. Text changes, changes to Departments' budgets with no net effect on expenditures: Pg 146 Changed "Highway Maintenance Supervisor" and "Dispatcher Supervisor" to two "Streets/ Parks Foreman" EXHIBIT B - Additional Funding for Police Department Replacement Cost Page # Department Line # Description Change in Change in % Change in Revenues/ Mill Rate Mill Rate Expenditures 93 Police Department 80017 To add funding to Replacement Cost account 47,000 0.021 0.09% 93 Police Department 89999 To increase fringe benefits commensurate to the increase 3,000 0.001 0.00% in Replacement Cost Expenditures - Increase in Taxes, Mill Rate, % change of 50,000 0.022 0.09% Mill Rate  RESOLUTION #3 WHEREAS, the Council of the City of Norwich by resolution adopted September 4, 2007 authorized the acting City Manager to execute a letter of intent with Capehart Ventures, LLC which proposed to buy tax liens from the City of Norwich for the property known as the Capehart Mill, consisting of approximately of 11 acres of land and improvements located at Fifth Street at the end of Canal in Norwich, Connecticut identified on assessor’s map 30, block 14, lot 22(hereinafter “the Property”); and WHEREAS, said letter of intent, among other things, authorized the City of Norwich to negotiate with Capehart Ventures, LLC to enter into a further agreement respecting said Property; and WHEREAS, the Council of the City of Norwich, by resolution adopted May 19, 2008 authorized City Manager, Alan H. Bergren, to execute a negotiated agreement on the behalf of the City of Norwich and deliver a duplicate original copy of the same to Capehart Ventures, LLC; and WHEREAS, said AGREEMENT OF DEVELOPMENT AND ASSIGNMENT OF MUNICIPAL TAX LIENS BETWEEN THE CITY OF NORWICH AND CAPEHART VENTURES, LLC was signed on July 7, 2008; and WHEREAS, the tax liens then held by the City have been assigned to Capehart Ventures, LLC subject to the right of repurchase by the City of Norwich which provides that if Capehart Ventures, LLC had not foreclosed on the liens within a three year due diligence period following the execution of the Agreement, the City of Norwich could repurchase the tax liens for a nominal value; and WHEREAS, for the last two years and nine months Capehart Ventures, LLC has studied the site, met with owners of the property on numerous occasion, engaged in discussions with the Department of Environmental Protection of the State of Connecticut, conferred with the adjacent property owners, and delayed in its efforts to inspect the site due to vandalism and a fire at the property; and WHEREAS, Capehart Ventures, LLC has invested a significant amount of money in its site study; and WHEREAS, Capehart Ventures, LLC has requested a two year extension to the terms of the Agreement; and WHEREAS, the Council of the City of Norwich finds that such an extension would be in the best interest of the City of Norwich 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 to negotiate a two year extension to the Agreement with Capehart Ventures, LLC, the other terms and conditions of the said Agreement remaining substantially the same; and BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH that, City Manager Alan H. Bergren be and hereby is authorized and directed to execute said extension of the Agreement on behalf of the City of Norwich and deliver a duplicate original copy of the same to Capehart Ventures, LLC. Mayor Peter A. Nystrom  RESOLUTION #4 WHEREAS, the Registrars of Voters of the City of Norwich have proposed reducing the number of precincts in Norwich from ten to five to include relocating the boundaries of precincts; and WHEREAS, this new alignment of precincts will have two precincts located within the present 47th State Assembly District and three precincts within the present 46th State Assembly District; and WHEREAS, this arrangement of precincts will reduce the cost of staffing for primaries and elections by reducing the number of precincts while also allowing the City to add an additional polling place to the four presently used NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH that, the makeup of the voting precincts in Norwich be amended in accordance with the list attached to this resolution as Exhibits A, B, C, D and E identifying the areas to be within Precinct 1, Precinct 2, Precinct 3, Precinct 4 and Precinct 5 respectively. Mayor Peter A. Nystrom  EXHIBIT A PRECINCT 1 All of the streets and residences contained within that portion of the City of Norwich; 1) bounded on the west by the Town of Franklin; 2) on the north by the Town of Sprague; 3) on the east by the Shetucket River; and 4) on the south by Hunters Road from the Shetucket River to its intersection with State Highway 169 (Harland Road); then running northerly on State Route 169 (Harland Road) to its intersection with Old Canterbury Turnpike; then running westerly in a direct line to Interstate 395 adjacent to Debbie Court; then southerly down the middle of Interstate 395 to its overpass of West Town Street, including all lands between the northerly entrance and southerly exit of Interstate 395 at Exit 82; then running in a westerly direction in a direct line from the northern most point of the southerly exit from Interstate 395 at Exit 82 to Plain Hill Road; then southerly on Plain Hill Road to Huntington Avenue, westerly on Huntington Avenue to Vergasson Avenue, then northwesterly on Vergasson Avenue to Vergasson Avenue Extension, then to Hilltop Road to a point west of the intersection of Hilltop Road and Wisconsin Avenue; and then in the general southeasterly direction to the border of the Town of Franklin. The properties and residences located along the described portions of all streets mentioned as the southerly boundary of Precinct 1 shall be within Precinct 1.  EXHIBIT B PRECINCT 2 All of the streets and residences contained within that portion of the City of Norwich; 1) bounded on the west by the northerly entrance ramp of Interstate 395 at Exit 82; then by the middle of Interstate 395 to the southerly border of Precinct 1, 2) on the north by the southerly border of Precinct 1; 3) on the east by the Shetucket River to South Golden Street, 4) on the south by a line commencing at the easterly end of South Golden Street running generally northerly to State Route 12 (North Main Street); then generally southeasterly along State Route 12 (North Main Street) to the intersection of Roath Street; then by Roath Street to Broad Street; on Broad Street to its intersection with Platt Avenue; on Platt Avenue to its intersection with Rockwell Street; on Rockwell Street to its intersection with Crescent Street; on Crescent Street to its intersection with Washington Street on Washington Street to its intersection with Town Street, then to West Town Street to the entrance to the north onbound ramp for Intersection 395 at Exit 82. The properties and residences located along the described portions of all of streets mentioned as the southerly boundary of Precinct 2 shall be within Precinct 2.  EXHIBIT C PRECINCT 3 All of the streets and residences contained within that portion of the City of Norwich; 1) bounded on the west by the Towns of Bozrah and Franklin, 2) on the north by the southerly boundaries of Precincts 1 and 2, 3) on the east by State Route 2 (Washington Street) to its intersection with Sturtevant Street, then in a westerly direction on Sturtevant Street to Yantic River, then generally northwesterly along the Yantic River to the intersection of Asylum Street and the Canada Bridge, then in a generally northwesterly direction along Asylum Street to Asylum Street Extension, then to Cranberry Pond Road to the overpass of Interstate 395, then southerly through the middle of Interstate 395 to the overpass for Wawecus Hill Road; 4) on the south by Wawecus Hill Road from the overpass of Interstate 395 to the Bozrah Town Line. The properties and residences located along the described portions of all of the streets mentioned as the easterly and southerly boundaries of Precinct 3 shall be within Precinct 3.  EXHIBIT D PRECINCT 4 All of the streets and residences contained within that portion of the City of Norwich; 1) bounded on the west by the town of Bozrah and from the overpass of Wawecus Hill Road at Interstate 395 by a line through the middle of Interstate 395 to the overpass of Cranberry Pond Road; 2) on the north by the southerly boundary of Precinct 3 to Sturtevant Street, 3) on the east by the east branch of the Yantic River from Sturtevant Street to the Thames River and by the Thames River southerly to the boundary on said river with the towns of Preston and Montville; 4) on the south by the Town of Montville.  EXHIBIT E PRECINCT 5 All of the streets and residences contained within that portion of the City of Norwich; 1) bounded on the west by the Thames River from the Preston Montville line to its confluence with the east branch of the Yantic River, then along the east bank of the Yantic River to Sturtevant Street; 2) to the north by portions of the easterly boundary of Precinct 3 and the southerly boundary of Precinct 2, then heading in a generally easterly line to the boundary between the City of Norwich and the Town of Preston; 3) on the east by the Town of Preston; 4) on the south by the Town of Preston.