TOWN OF GRANBY
BOARD OF SELECTMEN
SPECIAL MEETING
MINUTES
JANUARY 17, 2006
The special meeting of the Board of Selectmen was called to order by First Selectman John Adams at 6:30 p.m.
PRESENT: John Adams, Ronald Desrosiers, Frank Judice, Sally King, Mark Neumann, William F. Smith, Jr., Town Manager; and Courtney McGuire, Student Representative
No public addressed the Board.
A. Review of Board of Selectmen Rules of Procedure
ON A MOTION by Selectman Desrosiers, seconded by Selectman King, the Board voted unanimously (5-0-0) to accept the Rules of Procedure for the Board of Selectmen dated July 28, 2003.
B. Resignations and Appointments to be Considered
ON A MOTION by Selectman Desrosiers, seconded by Selectman Neumann, the Board voted unanimously (5-0-0) to appoint Selectman King as Vice-Chairman of the Board of Selectmen.
ON A MOTION by Selectman King, seconded by Selectman Desrosiers, the Board voted unanimously (5-0-0) to appoint Donald Holtman of Katz and Seligman as Town Attorney.
ON A MOTION by Selectman Neumann, seconded by Selectman Desrosiers, the Board voted unanimously (5-0-0) to appoint Roger Hernsdorf as Town Treasurer.
C. Consideration of Capital Program Priority Advisory Committee (CPPAC) Submissions for 2006
The Board of Selectmen was furnished with a memo from Town Manager Smith providing information on the town’s capital projects for 2006. Project details were also provided on summary forms. No new projects from last year’s list were introduced.
Town Manager Smith reviewed the projects, which included bridges, Park Pond House, Open Space/Traffic Control Improvements, Public Works Storage Additions and Sewer/Water. Estimated cost and start year information was also provided.
Additional discussion covered an update on the Broad Hill Road Bridge (under construction) and the Silver Street Bridge (in the preliminary design phase), estimated cost for each bridge project, and the cost to the town after reimbursements. There was also preliminary discussion on the Mechanicsville Road bridge and what might be done to alleviate the flooding after rainstorms.
ON A MOTION by Selectman Desrosiers, seconded by Selectman Judice, the Board voted unanimously (5-0-0) to approve the list of 2006 Capital Projects that were forwarded to CPPAC for their consideration.
D. Consideration of Accepting a Hartford Foundation for Public Giving Grant
Town Manager Smith stated the town has received approval from the Hartford Foundation for Public Giving in the amount of $35,000 for repairs to Cossitt Library.
ON A MOTION by Selectman King, seconded by Selectman Desrosiers, the Board voted unanimously (5-0-0) to authorize the Town Manager to accept the Hartford Foundation grant on behalf of the town.
The discussion that followed explored the possibility of setting up a fund to use for repairs and renovations to the Cossitt Library and repairs to other buildings.
E. Consideration of Board Resolutions for Bonding
Town Manager Smith notified the Board last November that it might not be economically beneficial for the town to continue with the forward swap presently in place for $10,000,000 in bonding. The Town Manager indicated this has proved to be true and he is recommending termination of the forward swap and set up for a traditional bond sale. The swap agreement must be terminated before February 1, 2006 or it will be necessary to begin payments to the Bank of America.
ON A MOTION by Selectman Desrosiers, seconded by Selectman King, the Board voted unanimously (5-0-0) to approve the Resolution for Approval of the Purchase Agreement Provisions and Termination of Swap as follows:
RESOLUTION FOR APPROVAL OF THE PURCHASE AGREEMENT
PROVISIONS AND TERMINATION OF SWAP
WHEREAS, the Town of Granby (the “Town”), through its legislative process, has authorized the issuance of the Town's bonds, notes or temporary notes for costs related to alterations to the Wells Road Intermediate School and the Kelly Lane Intermediate School, an addition to the Frank M. Kearns Elementary School, the acquisition of land for school purposes, and various public improvement projects, and
WHEREAS, said authorizations provide that if the bonds are sold by negotiation, provisions of the purchase contract shall be approved by the Board of Selectmen, and
WHEREAS, the Town Manager has determined to negotiate the sale of the Town's $10,000,000 General Obligation Bonds, to be dated February 15, 2006 and issued on February 16, 2006 (the "Bonds") to William Blair & Company LLC, and
WHEREAS, said authorizations provided that the Town Manager, subject to the approval of the Board of Selectmen, is authorized to enter into an interest rate swap agreement in connection with the issuance of the bonds, and
WHEREAS, on December 10, 2003, the Town entered into an interest rate swap (the "Swap") agreement with Bank of America (the "Swap Agreement"), and
WHEREAS, the Swap Agreement provides that payments shall begin on February 1, 2006, unless terminated at an earlier date.
NOW, THEREFORE, BE IT RESOLVED, that the form of the purchase contract attached hereto (the “Purchase Contract”) and the provisions contained therein are hereby approved, and
FURTHER RESOLVED, that the Town Manager is authorized to complete the sale of the Bonds, including determining the purchase price for and the interest rates on the Bonds and negotiating, executing and delivering the final Purchase Contract, and
FURTHER RESOLVED, that terminating the Swap is in the best interest of the Town and that the Town Manager is authorized to terminate the Swap and the Swap Agreement, to negotiate, execute and deliver any documents in connection with the termination of the Swap and to pay any termination payments related thereto from the proceeds of the Bonds, and
FURTHER RESOLVED, that the Town Manager is authorized to execute and deliver any documents in furtherance of these resolutions on behalf of the Town in such form as he shall deem necessary and appropriate.
Town Manager Smith will provide exact terms of the bond sale at the next Board meeting.
ON A M0TION by Selectman Neumann, seconded by Selectman Desrosiers, the Board voted unanimously (5-0-0) to adjourn the meeting at 6:55 p.m.
Respectfully submitted,
William F. Smith, Jr.
Town Manager
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