Open Space Funds Approved—

Council Moves $15 Million, Temporarily Suspends Charter Panel Search

By John Voket

A fast moving session of the Newtown Legislative Council Wednesday handled more than $15 million in business including bonding initiatives for the Reed School oil spill, two strategic open space acquisitions, and a long-term open space fund. The council also approved a cost-cap insurance policy for Fairfield Hills remediation activities, the auction of homes and property on Mile Hill South to help pay for those remediation activities, and made an appropriation that would transfer payroll funds to trim next year’s budget.

In other business, council members accepted what was described as a “glowing” and positive municipal audit, hired an audit firm for 2005, and accepted a proposed business incentive plan designed by the town’s economic development commission. Chairman William Rodgers also suspended a search for applicants to staff a charter review panel, which has been ongoing since last December, because of a shortage of qualified and interested candidates.

“The expressions of interest were tremendously underwhelming,” Mr Rodgers told the panel.

He suggested the process of seating a committee for eventual charter revision be put on hold, not only for a lack of applicants, Mr Rodgers explained, but also because the most pressing issue potentially facing the panel had been removed from consideration.

That concern, the establishment of a management authority for Fairfield Hills, will likely be authorized by state legislative action in the coming weeks. The “enabling act,” which was formulated by Ad Hoc Fairfield Hills Management Committee members William Lavery, Amy Dent, and Richard Sturdevant, would give town leadership and voters the opportunity to formulate a non policy-making authority that would report to town officials, instead of being an autonomous tax district.

“There are some things that have some time urgency to them, but the most pressing thing — the Fairfield Hills Authority — is being taken care of,” Mr Rodgers said. “We could seat a charter committee as large as 15 or as small as five, but are lacking in response to seat even the smallest [committee]. My suggestion is we put this off for review until after budget season.”

In budget related action, the group moved to purchase a cap-cost insurance policy to help underwrite significant and unexpected cost overruns in the remediation of contaminated soil from around all the buildings at Fairfield Hills. The policy, which is already budgeted, will cost about $400,000, and would kick in and pay up to a $10 million cap once a deductible is met, and if certain aspect of the soil remediation costs escalated over certain budget limits.

According to First Selectman Herb Rosenthal, the single premium, five-year policy could ultimately cover about $7 million of dollars in unanticipated costs, for instance, if remediation workers discover significantly more hazardous substance once excavating begins this spring.

Sale Of Homes Approved

Later during the meeting, the council voted to support the auction/sale of five town-owned homes on Mile Hill South. After the presentation of numerous reports from local real estate agents by Mr Rosenthal, council members seemed satisfied that the sale would benefit the community, because the revenue would be specifically earmarked to underwrite some of the aforementioned remediation costs on Fairfield Hills.

Now that the measure is approved, Mr Rosenthal can begin organizing the auction. He told the council that bids were expected to exceed $200,000 for four of the parcels, and $250,000 for a fifth larger parcel, which straddles the corner of Wasserman Way and Mile Hill Road South.

Following that action, the council unanimously accepted a proposal that had been forwarded by selectmen via the Board of Finance, to appropriate unanticipated revenue from state conveyance taxes. The appropriation would cover payroll expenses for the final municipal pay period of this fiscal year, instead of budgeting it in 2005.

According to Mr Spragg, the move would save the town more than $600,000 in the coming year’s budget.

Open Space Bonding Authorized

Next, the council acted to authorize bonding to be applied to the purchase of two unique properties on Lake Zoar for town use. If the purchases can be negotiated, and are approved within the $2 million budget allotted, the purchases would provide both a town beach/marina complex on Eichler’s Cove, and a strategic parcel that bridges several local and state trail networks, and provides scenic hilltop and waterfront views of the lake just north of the Rochambeau Bridge.

While the marina and beach property made sense to the council members, first district Republican Michael Iassogna argued that the smaller trail parcel might better serve the town financially if developed into a single lot home.

“The Eichler’s Cove marina is a good piece of property for the town irrelevant of its ability to generate revenue,” he said. “But my bigger concern is the second piece. It can’t be subdivided, so it should easily be able to pay for its services.”

Mr DiCandido concurred.

“Hallelujah,” Mr DiCandido exclaimed. “I have no problem bonding $2 million or $10 million for open space. I have a problem with the way it is being sold to the town.”

Mr Iassogna continued: “I want to make sure the public understands that this will not help to lower taxes today — maybe 20 years from now, but not today. In the short term it will actually increase taxes because we have to pay the debt service.”

After some further discussion and approval of the $2 million acquisition initiative, they also approved an additional $10 million in bonding, at $2 million per year, to create an additional fund to acquire other approved open space parcels.

The final major order of business for the night was to approve a special appropriation to bond for costs related to the Reed School spill. After Mr Rosenthal explained details of a presentation made to the Board of Finance Monday (see related story), the council agreed to seek a total of $1 million, which would be supplemented by more than $216,000 in revenues derived from cuts and transfers in the Board of Education’s current budget.

“The Board of Education is in no way responsible for this spill,” the first selectman said. The measure would also transfer responsibility for oversight on ongoing oil remediation at Reed School, and the administration of all costs, claims and legal action, if taken, to the town.