City Council

JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 A regular meeting of the Council of the City of Norwich was held July 5, 2017 at 7:30 PM in Council Chambers. Present: Mayor Hinchey, Aldermen Nystrom, Philbrick, Braddock, Gould, Martin and Nash. City Manager Salomone and Corporation Counsel Michael Driscoll were also in attendance. Mayor Hinchey presided. Ald. Gould read the opening prayer and Ald. Philbrick led the members in the Pledge of Allegiance. Upon a motion of Ald. Braddock, seconded by Ald. Gould, it was unanimously voted to adopt the minutes of June 5, 12 and 19, 2017. Mayor Hinchey called for a Public Hearing on AN ORDINANCE APPROPRIATING $2,400,000 FOR THE PLANNING AND DESIGN OF VARIOUS IMPROVEMENTS TO COMBINED SEWER OVERFLOW FACILITIES, AUTHORIZING THE ISSUANCE OF $2,400,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY SEWER REVENUES TO MEET SAID APPROPRIATION, AND AUTHORIZING THE CITY AND THE SEWER AUTHORITY TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A GENERAL RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO. City Clerk read the referral from the Commission on the City Plan: CITY OF NORWICH Commission on the City Plan 23 Union Street, Norwich, CT 06360 Telephone: (860) 823-3739, Fax: (860) 823-3741 Art Sharron, Chairman June 23, 2017 TO: THE HONORABLE MAYOR AND ALDERPERSONS OF THE COUNCIL OF THE CITY OF NORWICH PLANNING AND DESIGN OF VARIOUS IMPROVEMENTS TO COMBINED SEWER OVERFLOW FACILITIES, AUTHORIZING THE ISSUANCE OF $2,400,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY SEWER REVENUES TO MEET SAID APPROPRIATION, AND AUTHORIZING THE CITY AND THE SEWER AUTHORITY TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A GENERAL RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO. The Commission on the City Plan, at its June 20, 2017 regular meeting reviewed the above-referenced referral. Seated were Chairman Art Sharron, Michael Lahan, Frank Manfredi, Swarnjit Singh Bhatia, Daniel Daniska, and Jason Arndt. After careful consideration, the Commission voted unanimously to forward a FAVORABLE recommendation to the Council, pursuant to Chapter XV, Section 4 of the City Charter, FOR PLANNING AND DESIGN OF VARIOUS 1 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 IMPROVEMENTS TO COMBINED SEWER OVERFLOW FACILITIES, AUTHORIZING THE ISSUANCE OF $2,400,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY SEWER REVENUES TO MEET SAID APPROPRIATION, AND AUTHORIZING THE CITY AND THE SEWER AUTHORITY TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A GENERAL RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO. Reason: It is consistent with the Plan of Conservation and Development to provide for adequate infrastructure to meet the community needs and support desired growth patterns. A specific strategy is to improve the wastewater treatment system to address issues related to water quality, combined sewer/storm overflows, inflow/infiltration, and capacity constraints. Respectfully submitted, Art Sharron, Chairman AS/lls Pc: City Clerk, City Manager, City Planner, Chris LaRose, DPU Speaking in favor: John Bilda, 348 Harland Rd, General Manager, NPU, spoke in support of this ordinance that is a revenue pledge and will not have any effect on the bonding of the city. He stated it would give the ability to do removal work on the east side of Norwich. He stated this project is critical for the future health and safety of the citizens of Norwich and is mandated by federal and state regulators. He also stated it will have no effect on the rates and asked for Council support. Speaking in opposition: David Crabb, 47 Prospect St, spoke in opposition because he felt with the restructuring of the NPU board that they needed time to adapt their focus and maybe would want a rate cut. He also stated it would have been helpful to see the exhibit first and that it is premature. Rodney Bowie, 62 Roosevelt Ave, stated he lives in the affected area and things are just fine. He asked if they were going to dig up the street and if so that is not needed. He thought the NPU engineers should be used and the fees should be broken down. There being no further speakers Mayor Hinchey declared the public hearing closed. Mayor Hinchey called for a Public Hearing on AN ORDINANCE APPROPRIATING $19,900,000 FOR IMPROVEMENTS AND UPGRADES FOR THE INTERCONNECTION TO THE SPRAGUE PUBLIC WATER SYSTEM, INCLUDING THE STONY BROOK AND DEEP RIVER WATER TREATMENT PLANTS, THE FAIRVIEW/OCCUM DRINKING WATER STORAGE TANK, THE STONY BROOK TRANSMISSION MAIN, AND THE EXTENSION OF A WATER 2 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 MAIN TO SPRAGUE CONNECTICUT, AUTHORIZING THE ISSUANCE OF $19,900,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY WATER REVENUE TO MEET SAID APPROPRIATION, AUTHORIZING THE CITY AND DEPARTMENT OF PUBLIC UTILITIES TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A JOINT RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO, AND REPEALING PRIOR ORDINANCES Nos. 1699 AND 1724 FINANCING THE STONY BROOK FILTRATION IMPROVEMENTS AND TRANSMISSION MAIN AND CONSOLIDATING AND EXPANDING THOSE IMPROVEMENTS WITHIN ONE ORDINANCE HEREIN. City Clerk read the referral from the Commission on the City Plan: CITY OF NORWICH Commission on the City Plan 23 Union Street, Norwich, CT 06360 Telephone: (860) 823-3739, Fax: (860) 823-3741 Art Sharron, Chairman June 23, 2017 TO: THE HONORABLE MAYOR AND ALDERPERSONS OF THE COUNCIL OF THE CITY OF NORWICH AN ORDINANCE APPROPRIATING $19,900,000 FOR IMPROVEMENTS AND UPGRADES FOR THE INTERCONNECTION TO THE SPRAGUE PUBLIC WATER SYSTEM, INCLUDING THE STONY BROOK AND DEEP RIVER WATER TREATMENT PLANTS, THE FAIRVIEW/OCCUM DRINKING WATER STORAGE TANK, THE STONY BROOK TRANSMISSION MAIN, AND THE EXTENSION OF A WATER MAIN TO SPRAGUE CONNECTICUT, AUTHORIZING THE ISSUANCE OF $19,900,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY WATER REVENUE TO MEET SAID APPROPRIATION, AUTHORIZING THE CITY AND DEPARTMENT OF PUBLIC UTILITIES TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A JOINT RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO, AND REPEALING PRIOR ORDINANCES Nos. 1699 AND 1724 FINANCING THE STONY BROOK FILTRATION IMPROVEMENTS AND TRANSMISSION MAIN AND CONSOLIDATING AND EXPANDING THOSE IMPROVEMENTS WITHIN ONE ORDINANCE HEREIN The Commission on the City Plan, at its June 20, 2017 regular meeting reviewed the above-referenced referral. Seated were Chairman Art Sharron, Michael Lahan, Frank Manfredi, Swarnjit Singh Bhatia, Daniel Daniska, and Jason Arndt. After careful consideration, the Commission voted unanimously to forward a FAVORABLE recommendation to the Council, pursuant to Chapter XV, Section 4 of the City Charter, relative to an Ordinance APPROPRIATING $19,900,000 FOR IMPROVEMENTS AND UPGRADES FOR THE INTERCONNECTION TO THE SPRAGUE PUBLIC WATER SYSTEM, INCLUDING THE STONY BROOK AND DEEP RIVER WATER TREATMENT PLANTS, THE FAIRVIEW/OCCUM DRINKING WATER STORAGE TANK, THE STONY BROOK TRANSMISSION MAIN, AND THE EXTENSION OF A WATER MAIN TO SPRAGUE CONNECTICUT, AUTHORIZING THE ISSUANCE OF $19,900,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY WATER REVENUE TO MEET SAID APPROPRIATION, AUTHORIZING THE CITY AND DEPARTMENT OF PUBLIC UTILITIES TO ENTER INTO GRANT AND LOAN 3 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 AGREEMENTS AND A JOINT RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO, AND REPEALING PRIOR ORDINANCES Nos. 1699 AND 1724 FINANCING THE STONY BROOK FILTRATION IMPROVEMENTS AND TRANSMISSION MAIN AND CONSOLIDATING AND EXPANDING THOSE IMPROVEMENTS WITHIN ONE ORDINANCE HEREIN Reason: It is consistent with the Plan of Conservation and Development to provide for adequate infrastructure to meet the community needs and support desired growth patterns. Respectfully submitted, Art Sharron, Chairman AS/lls Pc: City Clerk, City Manager, City Planner, Chris LaRose, DPU Speaking in favor: John Bilda, 348 Harland Rd, General Manager, NPU, stated these projects have been on the horizon for some time and should not be foreign to anyone. He stated two things have happened since then. 1. The State Department of Health lowered some drinking water standards and 2. Since Flint Michigan, the testing is done differently; both would be fixed by this ordinance. Stating this project will strengthen and modernize our water infrastructure by partnering with Sprague making this a regional project and the State would give us more funding. He stated this will result in a 4% increase to the rate payers in 2020 which is $2.00 per month to have clean drinking water. He asked to support this ordinance. Speaking in opposition: Jon Oldfield, 175 Lawler Ln, stated Norwich water is Norwich water and stated this project is going to cost us money to build and ship to another town when Norwich is broke. He stated that we run a utility company to make money not have giveaways. Rodney Bowie, 62 Roosevelt Ave, stated there is no reason to extend the line to Sprague, he felt that Sprague or any other town shouldn’t be able to hook up to the water. He stated the costs are too high now. Linda Burleson, 24 Manwaring Rd, stated she doesn’t support this ordinance and has done research on this and has many questions. She stated the primary question is what the benefit to Norwich is besides increased rates when Sprague would get a free emergency water extension line and they would benefit. She also stated that the finances don’t add up. She asked the council to say no and asked for more accountability from NPU. Mary Wildowsky, 114 Wawecus Hill Rd, stated the taxes are too high and asked why we are supporting Sprague. 4 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 David Crabb, 47 Prospect St, stated there should have been an exhibit to make it easier to understand. He asked to amend this ordinance. Samuel Browning, 671 Scotland Rd, questioned the unresolved issues; Sprague emergency interconnection with no revenue flow of income so the citizens of Norwich will be paying for this. He asked if it’s possible to restructure so that Sprague pays the remaining half. He talked about Stony Brook transmission in Montville and asked if there is revenue from sales and if so what is the breakeven point. Brain Kobylarz, 16 Hobart Ave, stated he wishes there was a place to ask questions. He stated he would like to see regionalization take place but doesn’t mean we give all and they give none. He feels the Town of Sprague should provide a commitment to help us with additional costs for this emergency backup system. He asked who bears the cost to maintain and replace. Stephanie Burnham, 26 Cedar Ln, echoes the previous speakers and asked since Sprague was not a rate payer where are the revenues to offset the costs coming from. She asked for more transparency in explaining the detail to the ratepayers. There being no further speakers Mayor Hinchey declared the public hearing closed. Mayor Hinchey called for the second reading and action on AN ORDINANCE APPROPRIATING $2,400,000 FOR THE PLANNING AND DESIGN OF VARIOUS IMPROVEMENTS TO COMBINED SEWER OVERFLOW FACILITIES, AUTHORIZING THE ISSUANCE OF $2,400,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY SEWER REVENUES TO MEET SAID APPROPRIATION, AND AUTHORIZING THE CITY AND THE SEWER AUTHORITY TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A GENERAL RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO. Upon a motion Ald. Philbrick, seconded Ald. Braddock, it was unanimously voted to waive the reading of the full text and incorporate it into the minutes this being its second reading. Ald. Gould motioned, seconded by Ald. Braddock, to adopt the following ordinance introduced by City Manager Salomone. COUNCIL ORDINANCE AN ORDINANCE APPROPRIATING $2,400,000 FOR THE PLANNING AND DESIGN OF VARIOUS IMPROVEMENTS TO COMBINED SEWER OVERFLOW FACILITIES, AUTHORIZING THE ISSUANCE OF $2,400,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY SEWER REVENUES TO MEET SAID APPROPRIATION, AND AUTHORIZING THE CITY AND THE SEWER AUTHORITY TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A GENERAL RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO. 5 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH: Section 1. The sum of $2,400,000 is appropriated for the planning and design of the Norwich Department of Public Utilities’ (the “Department”) combined sewer overflow project, including, but not limited to, (a) flow metering of the collection system and overflow structures for permit required overflow reporting, (b) collection of flow and rainfall data for hydraulic model calibration and developing baseline conditions; (c) updating and calibrating an existing hydraulic model of the collection system; (d) design and bidding services for a sewer separation project in the Eastside area of Norwich; and (e) development of a revised long term control plan and implementation sequence to reduce CSO discharges, based on cost estimates, cost effectiveness, the requirements of the consent order, affordability analysis for the City of Norwich, and such additional work as may be accomplished within said appropriation and including contingencies, administration, advertising, printing, legal, and financing costs (hereafter the “Project”) as shall be determined by the Sewer Authority of the City of Norwich (the “Sewer Authority”) Said appropriation shall be inclusive of state and federal grants in aid thereof. The Sewer Authority is authorized to enter into contracts, expend the appropriation and implement the Project herein authorized. Section 2. The estimated useful life of the Project is not less than twenty years and Project costs are estimated not to exceed $2,400,000. Of the total estimated Project costs, approximately $237,000 is anticipated to be grant funded by or through the State of Connecticut pursuant to its Clean Water Fund Program (as hereinafter defined), and approximately $1,448,000 is anticipated to be financed by or through the State of Connecticut pursuant to its Clean Water Fund Program, through subsidized interest loans. The Project is a general benefit to the City of Norwich and its general governmental purposes. Section 3. To meet said appropriation: (i) bonds of the City or so much thereof as shall be necessary for such purpose, shall be issued, maturing not later than the twentieth year after their date (or such longer term as may be authorized). Said bonds may be issued in one or more series as determined by the City Manager and the Comptroller - acting on behalf of the City herein - and the General Manager of the Department, or any other authorized designee of the Sewer Authority - acting on behalf of the Department and the Sewer Authority herein - (collectively, the “Issuer Officials”) and the amount of bonds of each series to be issued shall be fixed by a majority of the Issuer Officials in the amount necessary to meet the Issuer’s share of the cost of the Project determined after considering the estimated amount of the State and Federal grants-in-aid of the Project, or the actual amount thereof if this be ascertainable, and the anticipated times of the receipt of the proceeds thereof, 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, or, be combined with other bonds of the Issuer and such combined issue shall be in the denomination per aggregate maturity of $1,000 or a whole multiple thereof, be issued in bearer form or in fully registered 6 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 form, be executed in the name and on behalf of the City by the facsimile or manual signatures of a majority of the Issuer Officials, bear the City seal or a facsimile thereof, be certified by a bank or trust company designated by a majority of the Issuer Officials, which bank or trust company may be designated the registrar and transfer agent, be payable at a bank or trust company designated by a majority of the Issuer Officials and be approved as to their legality by Bond Counsel. They shall bear such rate or rates of interest as shall be determined by a majority of the Issuer Officials. The issuance of such bonds in one or more series, the aggregate principal amount of bonds to be issued, the 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 a majority of the Issuer Officials, in accordance with the General Resolution. In the case of Parity Indebtedness as defined in the General Resolution between the City of Norwich and the Sewer Authority (as hereinafter defined as the “General Resolution”), a majority of the Issuer Officials, shall also determine the revenues and property to be pledged for payment of such Parity Indebtedness; or (ii) temporary notes of the City may be issued in one or more series pursuant to Sections 7-264 and 7-264a of the General Statutes of Connecticut, as amended. The amount of such notes to be issued, if any, shall be determined by a majority of the Issuer Officials, and they are hereby authorized to determine the date, maturity, interest rate, form and other details and particulars of such notes, and to sell, execute and deliver the same; or (iii) sewer assessment notes of the City may be issued in one or more series pursuant to Section 7-269a of the General Statutes of Connecticut, as amended. The amount of such notes to be issued, if any, shall be determined by a majority of the Issuer Officials, and they are hereby authorized to determine the date, maturity, interest rate, form and other details and particulars of such notes, and to sell, execute and deliver the same; or (iv) interim funding obligations and project loan obligations or any other obligations of the City (hereinafter “Clean Water Fund Obligations”) evidencing an obligation to repay any portion of the costs of the Project determined by the State of Connecticut Department of Energy and Environmental Protection, Public Health or other department as applicable to be eligible for funding under Section 22a-475 et seq. of the Connecticut General Statutes, as the same may be amended from time to time (the “Clean Water Fund Program”). The General Manager of the Department, or any other authorized designee of the Sewer Authority, is authorized in the name and on behalf of the City and the Sewer Authority to apply for and accept any and all Federal and State loans and/or grants-in-aid of the Project and is further authorized to expend said funds in accordance with the terms hereof and in connection therewith to contract in the name of the Department with engineers, contractors and others. The City may issue Clean Water Fund Obligations in one or more series and in such denominations as a majority of the Issuer Officials shall determine, provided that the total of all such Clean Water Fund Obligations, bonds and notes issued and appropriation expended pursuant to this ordinance shall not exceed $2,400,000. A majority of the Issuer Officials are hereby authorized to determine the amount, date, maturity, interest rate, form and other details and particulars of such interim 7 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 funding obligations and project loan obligations, subject to the provisions of the Clean Water Fund Program, and to execute and deliver the same. Clean Water Fund Obligations shall be secured solely from a pledge of sewer system revenues; or (v) any combination of bonds, temporary notes, notes, or obligations as set forth in the preceding subsections may be issued, provided that the total, aggregate principal amount thereof outstanding, and including the amount of grant funding obtained pursuant to any Project Grant and Project Loan Agreement, at any time shall not exceed $2,400,000. Section 4. (i) Bonds, temporary notes, sewer assessment notes, Clean Water Fund Obligations and federal obligations all as set forth in section 3 are hereafter referred to as “Bonds”. The Bonds shall be sewer revenue bonds of the City, the payment of principal and interest on which shall be secured solely by revenues derived from the operation of the sewerage system, including use charges, connection charges, benefit assessments or any combination thereof, investment income derived there from, or other property of the sewerage system or revenue derived from the operation of the sewerage system in accordance with the General Resolution. Each of the Bonds shall recite to the effect 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, that such Bond does not constitute a general obligation of the City for which its full faith and credit is pledged, and that such Bond is payable solely from revenues, assessments, charges or property of the sewerage system specifically pledged therefore. (ii) The bonds authorized to be issued by section 3 shall be, issued and secured pursuant to the General Resolution of the City and the Sewer Authority, Sewer System General Revenue Bond Resolution approved by the City Council on November 21, 1994 and by the Sewer Authority on November 22, 1994, as amended, and as supplemented by various supplemental Resolutions adopted pursuant to the General Resolution, and which is hereby ratified, confirmed and approved in its entirety, including without limitation, the rate and revenue covenants therein. The Sewer Authority irrevocably agrees to comply with the provisions of the General Resolution, including Supplemental Resolutions, including but not limited to: to set, establish and collect and maintain rates and revenue as necessary to continually comply with the terms, conditions and covenants of the General Resolution. The City irrevocably agrees to comply with the provisions of the General Resolution. In order to implement the provisions of the General Resolution the City and the Sewer Authority may enter into an indenture of trust with a bank and trust company which indenture may contain provisions customarily included in revenue bond financings, including provisions of a similar nature to those in the General Resolution and which are necessary, convenient or advisable in connection with the issuance of the Bonds and their marketability. A majority of the Issuer Officials are hereby authorized to execute and deliver on behalf of the City and the Sewer Authority an indenture in such final form and containing such terms and conditions as they shall approve, and their signatures on any such indenture shall be conclusive evidence of their approval as authorized hereby. 8 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 (iii) A majority of the Issuer Officials on behalf of the City and the Sewer Authority are authorized to agree to additional terms and to delete or change existing terms and otherwise amend the form of General Resolution in order to obtain State or federal funding, provide better security for the bonds, correct any matter, cure any ambiguity or defect or otherwise benefit the Issuer in their judgment. Such additional or different terms may include restrictions on the use of sewer funds or fund balance or sewer operations, coverage ratios, additional or changed reserve requirements, identification and pledge of revenues securing the Bonds, providing for the form of the Bonds, conditions precedent to the issuance of Bonds and additional Bonds, the establishment and maintenance of funds and the use and disposition there from, including but not limited to accounts for the payment of debt service, the payment of operating expenses, debt service reserve and other reserve accounts, providing for the issuance of subordinated indebtedness, defining an event of default and providing for the allocation of revenues in such event, credit enhancement, providing for a pledge and allocation of sewer revenues to pay for obligations issued by third parties, and provisions of a similar and different nature to those in the General Resolution and which are necessary, convenient or advisable in connection with the issuance of the Bonds and their marketability, and to obtain the benefits of any state or federal grant or low interest loan program, including but not limited to A majority of the Issuer Officials are hereby authorized, in addition to the General Resolution, to execute and deliver on behalf of the Issuer and the Sewer Authority an indenture of trust in such final form and containing such terms and conditions as they shall approve, and their signatures on any such indenture shall be conclusive evidence of their approval as authorized hereby. Section 5. 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. Section 6. Said Bonds shall be sold by a majority of the Issuer Officials in a competitive offering or by negotiation, in their discretion. If sold in a competitive offering, the Bonds shall be sold upon sealed proposals at not less than par and accrued interest on the basis of the lowest not or true interest cost to the City. If the Bonds are sold by negotiation, a majority of the Issuer Officials, are authorized to execute a purchase agreement on behalf of the City and Sewer Authority containing such terms and conditions as they deem appropriate and not inconsistent with this Ordinance. Section 7. The City of Norwich (the “Issuer”) hereby expresses its official intent pursuant to section 1.150-2 of the Federal Income Tax Regulations, Title 26 (the “Regulations”), to reimburse expenditures paid 60 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 any 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 and General Manager of the Department or their designee is authorized to pay project expenses in accordance herewith pending the issuance of reimbursement Bonds, and to amend this declaration. 9 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 Section 8. It is hereby found and determined that it is in the public interest to issue all, or a portion of, the Bonds of the City authorized to be issued herein as qualified private activity bonds, or with interest that is includable in gross income of the holders thereof for purposes of federal income taxation. A majority of the Issuer Officials are hereby authorized to issue and utilize without further approval any financing alternative currently or hereafter available to municipal government pursuant to law, including but not limited to any “tax credit bond,” or “Build America Bonds” including Direct Payment and Tax Credit Versions. Section 9. This Ordinance shall be effective upon adoption by the City Council and its approval by the Sewer Authority. On a roll call vote of 7-0 motion passes unanimously. Mayor Hinchey called for the second reading and action on AN ORDINANCE APPROPRIATING $19,900,000 FOR IMPROVEMENTS AND UPGRADES FOR THE INTERCONNECTION TO THE SPRAGUE PUBLIC WATER SYSTEM, INCLUDING THE STONY BROOK AND DEEP RIVER WATER TREATMENT PLANTS, THE FAIRVIEW/OCCUM DRINKING WATER STORAGE TANK, THE STONY BROOK TRANSMISSION MAIN, AND THE EXTENSION OF A WATER MAIN TO SPRAGUE CONNECTICUT, AUTHORIZING THE ISSUANCE OF $19,900,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY WATER REVENUE TO MEET SAID APPROPRIATION, AUTHORIZING THE CITY AND DEPARTMENT OF PUBLIC UTILITIES TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A JOINT RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO, AND REPEALING PRIOR ORDINANCES Nos. 1699 AND 1724 FINANCING THE STONY BROOK FILTRATION IMPROVEMENTS AND TRANSMISSION MAIN AND CONSOLIDATING AND EXPANDING THOSE IMPROVEMENTS WITHIN ONE ORDINANCE HEREIN Upon a motion Ald. Martin, seconded Ald. Gould, it was unanimously voted to waive the reading of the full text and incorporate it into the minutes this being its second reading. Ald. Braddock motioned, seconded by Ald. Martin, to adopt the following ordinance introduced by City Manager Salomone. COUNCIL ORDINANCE AN ORDINANCE APPROPRIATING $19,900,000 FOR IMPROVEMENTS AND UPGRADES FOR THE INTERCONNECTION TO THE SPRAGUE PUBLIC WATER SYSTEM, INCLUDING THE STONY BROOK AND DEEP RIVER WATER TREATMENT PLANTS, THE FAIRVIEW/OCCUM DRINKING WATER STORAGE TANK, THE STONY BROOK TRANSMISSION MAIN, AND THE EXTENSION OF A WATER MAIN TO SPRAGUE CONNECTICUT, AUTHORIZING THE ISSUANCE OF $19,900,000 REVENUE BONDS OF THE CITY SECURED SOLELY BY WATER REVENUE TO MEET SAID APPROPRIATION, AUTHORIZING 10 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 THE CITY AND DEPARTMENT OF PUBLIC UTILITIES TO ENTER INTO GRANT AND LOAN AGREEMENTS AND A JOINT RESOLUTION WITH THE STATE OF CONNECTICUT WITH RESPECT THERETO, AND REPEALING PRIOR ORDINANCES Nos. 1699 AND 1724 FINANCING THE STONY BROOK FILTRATION IMPROVEMENTS AND TRANSMISSION MAIN AND CONSOLIDATING AND EXPANDING THOSE IMPROVEMENTS WITHIN ONE ORDINANCE HEREIN BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH: Section 1. The sum of $19,900,000 is appropriated for the planning, design acquisition and construction of improvements and upgrades for the interconnection to the Sprague Public Water System, including (i) the Stony Brook and Deep River Water Treatment Plants, (ii) the Fairview/Occum Drinking Water Storage Tank, (iii) the Stony Brook Transmission Main, and (iv) the extension of a water main to Sprague, Connecticut, including for each, site work, easements, land acquisition, related and appurtenant improvements, or so much thereof, or such additional improvements as may be accomplished within said appropriation provided herein, and including contingencies, administration, advertising, printing, legal, and financing costs (hereafter the “Project”) as shall be determined by the Norwich Department of Public Utilities (the “Department”). The Project components shall consist of the following related upgrades and improvements: Stony Brook Filtration Improvements (Estimated cost: $7.0 million) The planning, design, acquisition and construction of the replacement of the Stony Brook contact clarifier non-buoyant media with a dissolved air flotation system, upgrading the PLC controls, replacing the existing filter multi-media, and improvements to the waste handling system located in Montville, Connecticut, including the rehabilitation, repair or replacement of all or any portions of the contact clarifier media system. Deep River Filtration Improvements (Estimated cost: $2.0 million) The planning, design, acquisition and construction of the replacement or rehabilitation of the Deep River rapid sand filtration and automatic backwash system, and upgrading the PLC controls located in Lebanon, Connecticut, including the rehabilitation, repair or replacement of all or any portions of the filtration and backwash system and related and appurtenant improvements. Stony Brook Transmission Main Rehabilitation (Estimated cost: $5.4 million) The planning, design, acquisition and construction of the rehabilitation and or replacement of the Stony Brook transmission main located in Montville, Connecticut and Norwich, Connecticut including the rehabilitation, repair or replacement of all or any portions of the existing transmission main system. Fairview/Occum Water Storage Tank Aeration/Mixing System (Estimated cost: $850,000) The planning, design, acquisition and construction of the disinfection byproduct reduction aeration/mixing system, furnishing and installation of a chlorine analyzer, and upgrades to the SCADA system at the Fairview/Occum drinking water storage tank located in Norwich, Connecticut including the rehabilitation, repair or replacement of all or any portions of the electrical system, controls. Sprague Emergency Interconnection (Estimated cost: $3.2 million) 11 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 The planning, acquisition and construction of approximately 10,000 linear feet of 12 inch water main along Rt. 97 from the end of the Norwich public water system at Canterbury Turnpike to the Sprague public water system on Main Street within the Baltic section of Sprague, including preparation of a diversion permit within the City of Norwich and Town of Sprague, Connecticut Said appropriation shall be inclusive of state and federal grants in aid thereof. The Council finds such Project components to be related and the Department is authorized to enter into contracts, expend the appropriation and implement the Project, or any component thereof, herein authorized. Section 2. The estimated useful life of the Project is not less than thirty years and Project costs are estimated not to exceed $19,900,000. Of the total estimated Project costs, approximately $6,177,500 is anticipated to be grant funded by or through the State of Connecticut pursuant to its Clean Water Fund Program (as hereinafter defined), and approximately $12,267,500 is anticipated to be financed by or through the State of Connecticut pursuant to its Clean Water Fund Program, through subsidized interest loans. The Project is a general benefit to the City of Norwich and its general governmental purposes. Section 3. To meet said appropriation: (i) bonds of the City or so much thereof as shall be necessary for such purpose, shall be issued, maturing not later than the thirtieth year after their date of issue (or such longer term as may be authorized). Said bonds may be issued in one or more series as determined by the City Manager and the Comptroller – acting on behalf of the City herein - and the General Manager of the Department, or any other designee appointed by the Board – acting on behalf of the Department and the Board of Public Utilities Commissioners (hereafter the “Board”) herein - (collectively, the “Issuer Officials”) and the amount of bonds of each series to be issued shall be fixed by a majority of the Issuer Officials in the amount necessary to meet the Issuer’s share of the cost of the Project determined after considering the estimated amount of the State and Federal grants-in-aid of the Project, or the actual amount thereof if this be ascertainable, and the anticipated times of the receipt of the proceeds thereof, 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, or, be combined with other bonds of the Issuer and such combined issue shall be in the denomination per aggregate maturity 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 facsimile or manual signatures of a majority of the Issuer Officials, bear the City seal or a facsimile thereof, be certified by a bank or trust company designated by a majority of the Issuer Officials, which bank or trust company may be designated the registrar and transfer agent, be payable at a bank or trust company designated by a majority of the Issuer Officials and be approved as to their legality by Bond Counsel. They shall bear such rate or rates of interest as shall be determined by a majority of the Issuer Officials. The 12 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 issuance of such bonds in one or more series, the aggregate principal amount of bonds to be issued, the 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 a majority of the Issuer Officials, in accordance with the General Resolution. In the case of Parity Indebtedness as defined in the General Resolution between the City of Norwich and the Board (as hereinafter defined as the “General Resolution”), a majority of the Issuer Officials, shall also determine the revenues and property to be pledged for payment of such Parity Indebtedness; or (ii) temporary notes of the City may be issued in one or more series pursuant to Section 7-244a of the General Statutes of Connecticut, as amended. The amount of such notes to be issued, if any, shall be determined by a majority of the Issuer Officials, and such majority is hereby authorized to determine the date, maturity, interest rate, form and other details and particulars of such notes, and to sell, execute and deliver the same; or (iii) interim funding obligations and project loan obligations or any other obligations of the City (hereinafter “Clean Water Fund Obligations”) evidencing an obligation to repay any portion of the costs of the Project determined by the State of Connecticut Department of Energy and Environmental Protection, Public Health or other department as applicable to be eligible for funding under Section 22a-475 et seq. of the Connecticut General Statutes, as the same may be amended from time to time (the “Clean Water Fund Program”). The General Manager of the Department, or any other designee appointed by the Board, is authorized in the name and on behalf of the City and the Board to apply for and accept any and all Federal and State loans and/or grants-in-aid of the Project and is further authorized to expend said funds in accordance with the terms hereof and in connection therewith to contract in the name of the Department with engineers, contractors and others. The City may issue Clean Water Fund Obligations in one or more series and in such denominations as a majority of the Issuer Officials shall determine, provided that the total of all such Clean Water Fund Obligations, bonds and notes issued and appropriation expended pursuant to this ordinance shall not exceed $19,900,000. A majority of the Issuer Officials are hereby authorized to determine the amount, date, maturity, interest rate, form and other details and particulars of such interim funding obligations and project loan obligations, subject to the provisions of the Clean Water Fund Program, and to execute and deliver the same. Clean Water Fund Obligations shall be secured solely from a pledge of water system revenues; or (iv) promissory notes, bonds or other obligations made payable to the United States of America to meet any portion of the costs of the Project determined by the federal government, including acting through the Rural Utility Service of the United States Department of Agriculture (“USDA”) or other federal program or agency, to be eligible for loan and/or grant monies; or (v) any combination of bonds, temporary notes, notes, or obligations as set forth in the preceding subsections may be issued, provided that the total, aggregate principal amount thereof outstanding, and including the amount of grant funding obtained pursuant to any Project Grant and Project Loan Agreement, at any time shall not exceed $19,900,000. 13 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 Section 4. (i) Bonds, temporary notes, or water assessment notes, Clean Water Fund Obligations and federal obligations all as set forth in section 3 are hereafter referred to as “Bonds.” The Bonds shall be water revenue bonds of the City, the payment of principal and interest on which shall be secured solely by revenues derived from the operation of the water system, including use charges, connection charges, benefit assessments or any combination thereof, investment income derived there from, or other property of the water system or revenue derived from the operation of the water system in accordance with the General Resolution. Each of the Bonds shall recite to the effect 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, that such Bond does not constitute a general obligation of the City for which its full faith and credit is pledged, and that such Bond is payable solely from revenues, assessments, charges or property of the water system specifically pledged therefore. (ii) The bonds authorized to be issued by section 3 shall be, issued and secured pursuant to the General Resolution approved by the City Council on August 7, 2000, and the Board on July 17, 2000, as amended, and as supplemented by various supplemental Resolutions adopted pursuant to the General Resolution, and which is hereby ratified, confirmed and approved in its entirety, including without limitation, the rate and revenue covenants therein. The Board irrevocably agrees to comply with the provisions of the General Resolution, including Supplemental Resolutions, including but not limited to: to set, establish and collect and maintain rates and revenue as necessary to continually comply with the terms, conditions and covenants of the General Resolution. The City irrevocably agrees to comply with the provisions of the General Resolution. In order to implement the provisions of the General Resolution the City and the Board may enter into an indenture of trust with a bank and trust company which indenture may contain provisions customarily included in revenue bond financings, including provisions of a similar nature to those in the General Resolution and which are necessary, convenient or advisable in connection with the issuance of the Bonds and their marketability. A majority of the Issuer Officials are hereby authorized to execute and deliver on behalf of the City and the Board an indenture in such final form and containing such terms and conditions as they shall approve, and their signatures on any such indenture shall be conclusive evidence of their approval as authorized hereby. (iii) A majority of the Issuer Officials on behalf of the City and the Board are authorized to agree to additional terms and to delete or change existing terms and otherwise amend the form of General Resolution in order to obtain State or federal funding, provide better security for the bonds, correct any matter, cure any ambiguity or defect or otherwise benefit the Issuer in their judgment. Such additional or different terms may include restrictions on the use of water funds or fund balance or water operations, coverage ratios, additional or changed reserve requirements, identification and pledge of revenues securing the Bonds, providing for the form of the Bonds, conditions precedent to the issuance of Bonds and additional Bonds, the establishment and maintenance of funds and the use and disposition there from, including but not limited to accounts for the payment of debt service, the payment of operating expenses, debt service reserve and other reserve accounts, providing for the issuance of subordinated indebtedness, defining an event 14 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 of default and providing for the allocation of revenues in such event, credit enhancement, providing for a pledge and allocation of water revenues to pay for obligations issued by third parties, and provisions of a similar and different nature to those in the General Resolution and which are necessary, convenient or advisable in connection with the issuance of the Bonds and their marketability, and to obtain the benefits of any state or federal grant or low interest loan program, including but not limited to the Clean Water Fund and Federal Department of Agriculture Programs. A majority of the Issuer Officials are hereby authorized, in addition to the General Resolution, to execute and deliver on behalf of the Issuer and the Board an indenture of trust in such final form and containing such terms and conditions as they shall approve, and their signatures on any such indenture shall be conclusive evidence of their approval as authorized hereby. Section 5. 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. Section 6. Said Bonds shall be sold by a majority of the Issuer Officials in a competitive offering or by negotiation, in their discretion. If sold in a competitive offering, the Bonds shall be sold upon sealed proposals at not less than par and accrued interest on the basis of the lowest not or true interest cost to the City. If the Bonds are sold by negotiation, a majority of the Issuer Officials, are authorized to execute a purchase agreement on behalf of the City and Board containing such terms and conditions as they deem appropriate and not inconsistent with this Ordinance. Section 7. The City of Norwich (the “Issuer”) hereby expresses its official intent pursuant to section 1.150-2 of the Federal Income Tax Regulations, Title 26 (the “Regulations”), to reimburse expenditures paid 60 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 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 and the General Manager of the Department or their designee is authorized to pay project expenses in accordance herewith pending the issuance of reimbursement Bonds, and to amend this declaration. Section 8. It is hereby found and determined that it is in the public interest to issue all, or a portion of, the Bonds of the City authorized to be issued herein as qualified private activity bonds, or with interest that is includable in gross income of the holders thereof for purposes of federal income taxation. A majority of the Issuer Officials are hereby authorized to issue and utilize without further approval any financing alternative currently or hereafter available to municipal government pursuant to law, including but not limited to any “tax credit bond,” or “Build America Bonds” including Direct Payment and Tax Credit versions. Section 9. This Ordinance shall be effective upon adoption by the City Council and its approval by the Board. 15 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 Section 10. Simultaneously upon effectiveness of this Ordinance, Ordinances 1699 and 1724 shall be repealed. Any expenses paid from, debt issued, funding agreements and contracts entered into and projects undertaken pursuant to Ordinances 1699 and 1724, shall remain in full force and effect, shall be funded from, issued, entered into, and enforceable against the City and Board, pursuant to the authorization of this Ordinance and the terms thereof. On a roll call vote of 5-2 with President Pro Tem Nystrom and Ald. Nash voting in opposition the motion passes. Presentation by Gregg Schlough regarding the 134th Annual State Firefighters Association Convention & Parade which is September 15-17, 2017. Upon a motion of Ald. Gould, seconded by Ald. Braddock, it was unanimously voted to accept the report from the Commission on the City Plan. Upon motion of Ald. Philbrick, seconded by Ald. Braddock, it was unanimously voted to accept the report from the Commission on the City Plan. City Manager’s Report: To: Mayor Hinchey and members of the City Council From: John Salomone, City Manager Subject: City Manager’s Report Date: July 5, 2017 The Mayor and I continue our weekly meetings and we attended the monthly SECOG and SEAT together. I attended the Public Works and Capital Improvements meeting at the Public Works Department on June 19th. I gave the committee an update on the Human Services and Youth Services move to City Hall and to the Recreation Department and explained the City Hall Annex would be listed for sale. I also discussed the timeline for the paving bond that will be proposed to the council and residents in the near future. I attended the NCDC Board Meeting on June 22nd and also had a meeting regarding the Norwich Transfer Station with staff regarding the transition to Willimantic Waste. I had my monthly meeting with Department Heads. Deanna Rhodes, City Planner announced that the department was working on several grant projects, including Uncas Leap. Ryan Thompson, Public Works Director concurred and stated that funding for a traffic analysis for the closure of Chelsea Harbor Drive was also in process. He stated that a large play scape was being installed at the Taftville Park along with a handicapped swing. Leanne Gomes announced her staff was getting ready for their upcoming office move and that the Recreation Department would be holding a fundraiser in October with the Wizards basketball team. Brigid Marks, Human Resources Director stated the City is in the process of union negotiations and that the City will be pursuing interest (contract) arbitration for the police collective bargaining agreement. 16 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 I had the pleasure of being invited to be on “What’s your Gripe” hosted by Jon Oldfield at the Comcast Public Access Studio on June 27th. On Wednesday, the Mayor, Ryan Thompson and I went to Newington to meet with William Britnell, Principal Engineer, from the State Highway Design Unit for CT DOT. I gave them a copy of the resolution that the Council had approved on June 19th regarding the Rt. 82 roundabouts. We had a productive discussion and the design will be reviewed by the DOT. The “Development Agreement” for the Reid & Hughes has been prepared and sent to Betsy Crum, Executive Director of the Women’s Institute and we are waiting for the fully executed agreement. Norwich Police Detective Ryan Kelsey received 2 awards from the US Attorney’s Office, District of CT on June 14, 2017 in New Haven. Ryan assisted in the investigations of a large-scale distribution of narcotics and a cold case homicide. Congratulations and good work Detective Kelsey. I had the pleasure of viewing the Norwich Fire Works on Friday, June 30th at the Norwich Harbor. Great job to the Norwich Events Organization for bringing back a Norwich tradition. Also, thank you to Kelly August and committee, on the celebration for the 50th anniversary of the Rose Arts Festival. Special thanks to Norwich Police, Norwich Public Works, Norwich Fire Department, Norwich Public Utilities, sponsors and volunteers for making both of these events possible. Mayor Hinchey called for citizen comment on resolutions. David Crabb, 47 Prospect St, spoke in opposition of resolution #1. Mayor Hinchey declared citizen comment on resolutions was closed. Upon a motion of Ald. Braddock, seconded by Ald. Gould, it was unanimously voted to put the following resolution introduced by Mayor Hinchey on the floor. Ald. Philbrick asked to take each one individually. Upon a motion of Ald. Philbrick, seconded by Ald. Braddock, it was unanimously voted on #1 CD Office- Administration for the Council to recommend $150,798.00. Upon a motion of Ald. Nash, seconded by Ald. Martin, it was unanimously voted on #2 TVCCA- Home Again Project for the Council to recommend $10,000.00. Upon a motion of Ald. Braddock, seconded by Ald. Nash, it was unanimously voted on #3 Norwich Human Services- Norwich Works for the Council to recommend $38,000.00. Upon a motion of Ald. Gould, seconded by Ald. Nash, it was voted on #4 NHS- Norwich Community Care Team for the Council to recommend $10,000.00. Motion to amend by Ald. Philbrick, seconded by Ald. Gould to increase the amount to $15,000. On a vote of 2-5 with Mayor Hinchey, President Pro Tem Nystrom, Ald. Nash, Martin and Braddock voting in opposition. The amendment fails. Motion passes at $10,000. Ald. Philbrick asked to be excused from the meeting and left at 9:15 pm. 17 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 Upon a motion of President Pro Tem Nystrom, seconded by Ald. Braddock, it was unanimously voted on #5 Safe Futures- Domestic Violence Response Team for the Council to recommend $ 15,000.00. Upon a motion of Ald. Gould, seconded by President Pro Tem Nystrom, it was unanimously voted on #6 United Congregational Church for the Council to recommend 0. Upon a motion of Ald. Braddock, seconded by Ald. Nash, it was unanimously voted on #7 Norwich Public Works- Playground Phase III for the Council to recommend 55,000.00. Upon a motion of Ald. Nash, seconded by Gould, it was unanimously voted on #8 Norwich Public Works- Taftville Sidewalks Phase II for the Council to recommend $86,000.00. Upon a motion of Ald. Braddock, seconded by Ald. Gould, it was unanimously voted on #9 Norwich Public Works- ADA Sidewalk Ramps for the Council to recommend $66,000.00. Upon a motion of Ald. Gould, seconded by Ald. Braddock, it was unanimously voted on #10 ARC of New London for the Council to recommend $0. Upon a motion of Ald. Martin, seconded by Ald. Braddock, it was voted to put on the floor #11 East Great Plains Volunteer FD for the Council to recommend 0. On a vote of 4-1-1 with Ald. Nash voting in opposition and Ald. Gould recused herself. Motion passes at 0. Upon a motion of President Pro Tem Nystrom, seconded by Ald. Braddock, it was unanimously voted on #12 Norwich Police Dept-Taftville Public Safety Camera System Expansion for the Council to recommend 99,000.00. Upon a motion of Ald. Nash, seconded by Ald. Braddock, it was unanimously voted on #13 Norwich Housing Authority-Rosewood Manor for the Council to recommend $55,195.00. Upon a motion of Ald. Braddock, seconded by Ald. Nash, it was unanimously voted on #14 CD Office Neighborhood Preservation/Property Rehab Program for the Council to recommend 254,000.00. The resolution as amended is as follows: WHEREAS, the City of Norwich is an entitlement community receiving U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) dollars; and WHEREAS, a delay in funding by HUD required the city to estimate the PY 17 budget to be $685,000 with a recapture of $85,000 from previous program years; and WHEREAS, HUD has since announced the city will be receiving approximately $753,993 for program year PY 2017 and the recapture of $85,000.00 from previous program years; and 18 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 WHEREAS, the Community Development Advisory Committee (CDAC) held public meetings and voted on their recommendations for CDBG allocations in the month of March and June; and WHEREAS, the Council of the City of Norwich held a public hearing regarding the recommendations on June 5, 2017 and at a public meeting on July 5, 2017 and the allocation process is subject to a 30-day comment period from June 6, 2017 until July 6, 2017 prior to being placed into effect. NOW THEREFORE BE IT RESOLVED BY THE NORWICH CITY COUNCIL that the allocation sum of $838,993 in CDBG entitlement grant funds shall be allotted as follows, and that the City Manager, through his designee, is hereby directed to submit the Annual Action Plan for the City of Norwich to HUD no later than August 16, 2017 CDBG Requests - PY 2017 PY 2017 Allocation $ 753,993.00 Recapture $ 85,000.00 $ 838,993.00 CDAC Council PY 2017 Request Recommendation Recommendation 1 CD Office - Administration $ 150,798.00 $ 150,798.00 $ 150,798.00 PUBLIC/SOCIAL SERVICES 2 TVCCA - Home Again Project $ 20,000.00 $ 10,000.00 $ 10,000.00 3 Norwich Human Services - Norwich Works $ 48,884.49 $ 38,000.00 $ 38,000.00 4 NHS - Norwich Community Care Team $ 15,000.00 $ 10,000.00 $ 10,000.00 5 Safe Futures - Domestic Violence Response Team $ 15,000.00 $ 15,000.00 $ 15,000.00 6 United Congregational Church $ 8,000.00 $ - $ - Total Public/Social Service $ 106,884.49 $ 73,000.00 $ 73,000.00 OTHER 7 Norwich Public Works - Playground Phase III $ 95,000.00 $ 55,000.00 $ 55,000.00 8 Norwich Public Works - Taftville Sidewalks Phase II $ 86,000.00 $ 86,000.00 $ 86,000.00 9 Norwich Public Works - ADA Sidewalk Ramps $ 66,600.00 $ 66,000.00 $ 66,000.00 10 ARC of New London $ 30,424.00 $ - $ - 11 East Great Plain Volunteer FD $ 74,000.00 $ - $ - 12 Norwich Police Dept-Taftville Public Safety Camera System Expansion $ 99,930.00 $ 99,000.00 $ 99,000.00 13 Norwich Housing Authority - Rosewood Manner $ 75,000.00 $ 55,195.00 $ 55,195.00 14 CD Office Neighborhood Preservation/ Property Rehab Program $ 350,000.00 $ 254,000.00 $ 254,000.00 Total Other $ 876,954.00 $ 615,195.00 $ 615,195.00 Total Public Service $ 106,884.49 $ 73,000.00 $ 73,000.00 Total Other $ 876,954.00 $ 615,195.00 $ 615,195.00 CD Administration $ 150,798.00 $ 150,798.00 $ 150,798.00 Total Requests $ 1,134,636.49 $ 838,993.00 $ 838,993.00 Upon a motion of President Pro Tem Nystrom, seconded by Ald. Braddock, it was unanimously voted to adopt the following resolution introduced by Mayor Hinchey. WHEREAS, on June 29, 2016 the City of Norwich Police Department notified the Council of the City of Norwich and City Manager John Salomone that it had applied for funds in the amount of $16,638 under the 2016 Edward Byrne Memorial Justice Assistance Grant (JAG) Program established within the United States Department of Justice, said funding to be used for the purchase of a portable speed detection monitor and trailer unit and additional handheld laser units for traffic calming and enforcement; and WHEREAS, federal guidelines require that all JAG applicants make any JAG application “available for review by the governing body or organization designated by the body”; and 19 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 WHEREAS, this JAG application was posted on the Norwich Police Department website for public comment; and WHEREAS, the Norwich Police Department has been awarded the grant but release of funding under this grant requires confirmation of satisfactory completion of the Governing Body Review which has been performed by the Council of the City of Norwich; and WHEREAS, the Council of the City of Norwich finds this grant application, and the receipt of funds by the Police Department of the City of Norwich for the purpose described in the application to be in the best interest of the City of Norwich. NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF NORWICH, that it go on record as fully supporting this application, the award of the grant pursuant to the same, the receipt of funding, and, if required, authorizes, currently and retroactively, City Manager John Salomone to execute, enter into, and submit on behalf of the City of Norwich and the Norwich Police Department any and all materials, communications, or authorizations required by the application and/or in connection with the receipt of any funds approved under the application to be used by the City of Norwich Police Department for the purposes stated in the application and grant. Upon a motion of Ald. Braddock, seconded by Ald. Gould, it was unanimously voted to schedule a public hearing and second reading and action for the following ordinance introduced by City Manager Salomone on July 17, 2017, 7:00 pm AN ORDINANCE AMENDING ORDINANCE 1749 AND APPROPRIATING ADDITIONAL FUNDS FROM THE UNRESTRICTED FUND BALANCE OF THE CITY CONSOLIDATION DISTRICT WHEREAS, on June 12, 2017, the Council of the City of Norwich appropriated $311,000 of unrestricted fund balance (“UFB”) of the City Consolidation District (“CCD”) for the purpose of mitigating the CCD tax levy; and WHEREAS, upon the appropriation of this $311,000 of UFB of the CCD, there was no longer an adequate amount of UFB available for purposes of making an additional contribution to the Firefighters portion of the City of Norwich Retirement Plan; and WHEREAS, the projected costs of overtime, replacement cost, and negotiated salaries and benefits for fiscal year 2016-17 increased to $374,000 higher than anticipated compared to the adopted 2016-17 budget. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH THAT Ordinance 1749, adopted June 19, 2017, be amended as set forth herein effective retroactive to June 19, 2017. Ordinance 1749 - AN ORDINANCE APPROPRIATING ADDITIONAL FUNDS FROM THE UNRESTRICTED FUND BALANCE OF THE CITY CONSOLIDATION DISTRICT 20 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 WHEREAS, the cost of overtime, replacement cost, and negotiated salaries and benefits for fiscal year 2016-17 are $330,000 $374,000 higher than anticipated compared to the adopted 2016-17 budget for the City Consolidation District (“CCD”).; and WHEREAS, the CCD has an unrestricted fund balance (“UFB”) which is projected to be $926,000, or 12% of the operating expenditures of the CCD as of June 30, 2017, including the impact of the $330,000 budget variances described above; and WHEREAS, the UFB of the CCD fund has accumulated primarily as a result of greater-than-anticipated current and prior tax levy collections over the years; and WHEREAS, although the City does not have a formal policy for the UFB level of the CCD fund, because the expenditures in this fund vary moderately, the Comptroller and City Manager deem a UFB level of 8% of operating expenditures, or $615,000, to be adequate for this fund; and WHEREAS, as of the City of Norwich Retirement Plan’s most recent actuarial valuation report dated July 1, 2015, the Firefighters portion of the Plan has an Unfunded Accrued Liability of $15,326,208 and a funded ratio of 60.9%; and WHEREAS, an additional contribution to the Firefighters portion of the City of Norwich Retirement Plan will have a long-term impact on mitigating property taxes for the taxpayers of the CCD. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH THAT the sum of $330,000 $374,000 be and hereby is appropriated from the UFB of the CCD to increase the fiscal year 2016-17 budget for CCD expenditure line items as follows: 80012 Employees $44,000 80014 Overtime 25,000 80017 Replacement Cost 238,000 89999 Fringe Benefits 23,000 Total $330,000 80012 Employees $34,000 80014 Overtime 30,000 80017 Replacement Cost 268,000 89999 Fringe Benefits 42,000 Total $374,000 BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH THAT $311,000 be and hereby is appropriated from the UFB of the CCD to increase the fiscal year 2016-17 budget for CCD expenditure line item 89999 “Fringe Benefits” for the purpose of making an additional contribution to the Firefighters portion of the City of Norwich Retirement Plan. Purpose: To amend Ordinance 1749 to only appropriate funds from the unrestricted fund balance of the City Consolidation District fund for projected expenditures in excess of the 21 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 adopted 2016-17 budget and for an additional contribution to the City of Norwich Retirement Plan. Upon a motion of Ald. Gould, seconded by Ald. Braddock, it was unanimously voted to schedule a public hearing and second reading and action for the following ordinance introduced by City Manager Salomone on July 17, 2017, 7:00 pm AN ORDINANCE AMENDING ORDINANCE 1750 APPROPRIATING ADDITIONAL FUNDS FROM THE UNRESTRICTED FUND BALANCE OF THE TOWN CONSOLIDATION DISTRICT WHEREAS, on June 12, 2017, the Council of the City of Norwich appropriated $346,000 of unrestricted fund balance (“UFB”) of the Town Consolidation District (“TCD”) for the purpose of mitigating the TCD tax levy; and WHEREAS, upon the appropriation of this $346,000 of UFB of the TCD, there was no longer an adequate amount of UFB available for purposes of making an additional contribution to the Volunteer Firefighters’ Relief Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH THAT Ordinance 1750, adopted June 19, 2017, be amended as set forth herein effective retroactive to June 19, 2017. Ordinance 1750 - AN ORDINANCE APPROPRIATING ADDITIONAL FUNDS FROM THE UNRESTRICTED FUND BALANCE OF THE TOWN CONSOLIDATION DISTRICT WHEREAS, the cost of property tax credits for volunteer firefighters for fiscal year 2016-17 are $8,000 higher than anticipated compared to the adopted 2016-17 budget for the Town Consolidation District (“TCD”).; and WHEREAS, the TCD has an unrestricted fund balance (“UFB”) which is projected to be $376,000, or 64% of the operating expenditures of the TCD as of June 30, 2017, including the impact of the $8,000 budget variance in property tax credits for volunteer firefighters; and WHEREAS, this UFB has accumulated as a result of greater-than-anticipated current and prior tax levy collections over the years; and WHEREAS, although the City does not have a formal policy for the UFB level of the TCD fund, because the expenditures in this fund do not vary greatly, the Comptroller and City Manager deem a UFB level of 5% of operating expenditures, or $30,000, to be adequate for this fund; and WHEREAS, the contribution to the Volunteer Firefighters’ Relief Fund is the largest expenditure of the TCD; and 22 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 WHEREAS, as of the Volunteer Firefighters’ Relief Fund’s most recent actuarial valuation report dated January 1, 2016, the Volunteer Firefighters’ Relief Fund has an Unfunded Accrued Liability of $3,569,000 and a funded ratio of 39.27%; and WHEREAS, an additional contribution to the Volunteer Firefighters’ Relief Fund will have a long-term impact on mitigating property taxes for the taxpayers of the TCD. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH THAT the sum of $8,000 be and hereby is appropriated from the UFB of the TCD to increase the fiscal year 2016-17 budget for TCD expenditure line item 80122 “VFF Tax Abatement.” BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF NORWICH THAT the sum of $346,000 be and hereby is appropriated from the UFB of the TCD to increase the fiscal year 2016-17 budget for TCD expenditure line item 89270 “VFF Relief Fund Contribution.” John L. Salomone Purpose: To amend Ordinance 1750 to only appropriate funds from the unrestricted fund balance of the Town Consolidation District fund for projected expenditures in excess of the adopted 2016-17 budget and for an additional contribution to the Volunteer Firefighters’ Relief Fund Plan. Upon a motion of Ald. Nash, seconded by Ald. Gould, it was unanimously voted to refer the following to The Public Safety Committee and to schedule a public hearing and second reading and action for the following ordinance introduced by Ald. Nash, Gould and Philbrick on July 17, 2017, 7:00 pm: Council Ordinance AN ORDINANCE APPROPRIATING $3,200,000 FOR PUBLIC SAFETY EQUIPMENT AND AUTHORIZING THE ISSUE OF $3,200,000 BONDS OF THE CITY TO MEET SAID APPROPRIATION 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 $3,200,000 is appropriated for the City of Norwich’s (the “City”) share of costs relating to purchase of an engine tanker for the East Great Plain Volunteer Fire Department; a rescue pumper and a large squad vehicle for the Taftville Volunteer Fire Department; a pumper for the Yantic Volunteer Fire Department; a pumper for the Laurel Hill Fire Department; and any additional public safety equipment, including communications equipment, as later determined and approved by resolution of the Council of the City of Norwich for the City’s fire or police departments as may be accomplished within said appropriation (collectively, “Equipment”), and for administrative, consulting, advertising, printing, legal and financing costs to the extent paid therefrom. Said appropriation shall be in addition to grant funding and all prior and future appropriations for said purpose. 23 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 Section 2. The total estimated cost of the Equipment is $3,200,000. Other than the sale value, trade-in value, or scrap value of all items being replaced pursuant to this appropriation and bond ordinance, no portion of the Equipment cost is expected to be paid from sources other than the proposed bond and note financings. The estimated useful life of the Equipment is twenty (20) years. The Equipment is a general benefit to the City and its general governmental purposes. Section 3. To meet said appropriation $3,200,000 bonds of the City, or so much thereof as may be necessary for said purpose, may be issued, maturing not later than the twentieth (20th) 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 Pullman & Comley, LLC, 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, that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon and shall be paid from property taxation to the extent not paid from other funds available for the payment thereof. 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 (the “Statutes”). 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 of the Statutes, including the authority to enter into agreements managing interest rate risk. The City Manager and Comptroller, on behalf of the City, shall execute and deliver such reimbursement agreements, letter of credit agreement, credit facilities, remarketing, standby marketing agreements, standby bond purchase agreements, and any other commercially necessary or appropriate agreements which are necessary, appropriate or desirable in connection with or incidental to the sale and issuance of such bonds or notes. 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. 24 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 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 process, at not less than par and accrued interest on the basis of the lowest net or true interest cost to the City. 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 Statutes, and be approved as to their legality by Pullman & Comley, LLC, Bond Counsel. They shall be issued with maturity dates which comply with the provisions of the 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, that the full faith and credit of the City are pledged to the payment of the principal thereof and the interest thereon and shall be paid from property taxation to the extent not paid from other funds available for the payment thereof. 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 Equipment. Upon the sale of said bonds the proceeds thereof, to the extent required, shalt 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 that 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. 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 Equipment to any bonds or notes of the City outstanding as of the date of 25 JOURNAL OF THE COUNCIL OF THE CITY OF NORWICH JULY 5, 2017 such allocation, and the bonds or notes to which such expenditures have been allocated shall be deemed to have been issued for such purpose. Section 10. It is hereby found and determined that the issue of all, or a portion of, the bonds, notes or other obligations of the City authorized to be issued herein as qualified private activity bonds, or with interest that is includable in gross income of the holders thereof for purposes of federal income taxation, is in the public interest. The City Manager and the Comptroller are hereby authorized to issue and utilize without further approval any financing alternative currently or hereafter available to municipal governments pursuant to law. Section 11. The City Manager and Comptroller are hereby authorized to prepare and distribute preliminary and final Official Statements of the City, to execute and deliver on behalf of the City all such other documents, and to take all action, necessary and proper for the sale, issuance and delivery of any bonds or notes relating to the Equipment in accordance with the provisions of the Statutes and the laws of the United States. Section 12. This ordinance shall not take effect unless and until adopted by the City Council and approved at referendum. Upon a motion by Ald. Braddock, second by Ald. Nash, it was unanimously voted to go into Executive Session pursuant to Connecticut General Statute Section 1-200, that the members of the Norwich City Council go into Executive Session for the purpose of discussing the performance and evaluation of City Manager John Salomone, who does not require that these discussions be held at an open meeting. Director of Human Resourses, Brigid Marks, shall be asked to attend all or portions of this Executive Session at the request of the City Council The council was in Executive Session from 9:25 pm to 9:32 pm, at which time Mayor Hinchey, stated no votes were taken. Upon a motion of Ald. Nash, seconded by Ald. Braddock, it was unanimously voted to return to regular session. Upon motion of Ald. Nash, seconded by Ald. Gould, it was unanimously voted to adjourn at 9:33 pm. CITY CLERK 26