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HomeMy WebLinkAboutMinutes - City Council - 07/24/2009CITY COUNCIL 24 JULY 2009 The South Burlington City Council held a special meeting on Friday July 24, 2009, at 1:30 p.m. in the Conference Room, City Hall, 575 Dorset St. Members Present: J. Knapp, M. Emery, S. Dooley Also Present: T. Dipietro, Storm Water Superintendent, B. Hoar, Director of Public Works, D. Gravelin, Assistant City Manager, J. Baird (Burlington Free Press) Vice-Chair Dooley presiding, called the meeting to order at 1:30 p.m. 1. Consider adoption of a resolution to submit to the voters an article to issue bonds to fund construction of storm water improvement projects and adoption of a warning for a Special City Meeting for the voters to vote on said matter. Assistant City Manager Gravelin reviewed the timeline necessary to meet a State imposed deadline for contracts for the improvement of storm water facilities, to be in place by September 1, 2009, in order to be eligible for ARRA 2009 stimulus funding. A necessary public vote is required with the proper warning of a public vote, in order to authorize the borrowing of up to $716,500 to finance the upgrade of individual storm water retention ponds at Twin Oaks, Ridgewood/Indian Creek, Winding Brook, and Harbor Heights developments. He explained that the authorization was necessary in order to accommodate certain conditions regarding the application for ARRA 2009 stimulus funds. It is anticipated that the ARRA funding will service 50% of the debt with the balance coming from the developments' homeowners associations. As there is a scheduled public vote for September 15, 2009, expected to be formally warned on August 10, staff suggests a review of the projects and floor vote be warned and conducted at a meeting on August 24, ratified by Australian Ballot September 15th. ACM Gravelin stated that the financing plans for these projects will be very similar to the previously authorized Quarry Ridge program, utilizing state revolving funds (SRF funds) with a 5-year term. He further noted that any contracts resulting from these actions will note a clear understanding of the subsequent Australian Ballot, homeowners' associations provide adequate financial guarantees to the City, and subject to the availability of ARRA funding. He further brought to the Council's attention, several questions raised by Councilor J. Knapp prior to the meeting. They were presented and discussed as followed. 1. Concerned about the idea of approving projects totaling $716,500 in a public meeting. It was one thing to approve a project that was only $75,000 and is covered by either ARRA funds or the homeowner's obligation to repay the city. I am more concerned about the size of the current borrowing. I like the idea of approving each project individually so that each can proceed on its own. Councilor Knapp noted his concern about whether homeowner associations can be prepared timely to provide necessary assurances. Councilor Dooley questioned whether these project improvements need to occur even without the financing and whether Quarry Ridge was asked and provided the same assurances. Staff answered yes to both, and the homeowners association provided a letter agreement and assurances are included in the maintenance agreements. 2. Would like to know if the homeowner's association has been creating reserves through the regular or special assessments, and if they have reserves what is the status of those reserve accounts. I would feel better knowing what resources are available to these boards at the start of the process. T. Dipietro reported that four of the homeowner's associations have reserves to cover the full amounts. Harbor Heights plans to send a special assessment to its members to cover the costs. Referring to a handout listing the projects, Councilor Dooley asked why the Twin Oaks project indicated City funds. T. Dipietro explained that Twin Oaks project boundary includes certain City streets. In response to a question on how the homeowner's reserves are held, T. Dipietro said they are all different, some specific, some general, or to be replenished with special assessment. 3. If we pursue this approval, we need to have a commitment from each homeowner's association affirming the obligation to repay the entire amount, plus a partial assignment of the Homeowners Association's dues to cover the payments and the right to act through a trustee to require the association to make and collect the special assessments if they do not. Staff indicated that without the funding the contracts will be null and void. Councilor Knapp wants to make certain that Council be assured that the City cannot be exposed this funding without recourse to collect. 4. There is also the question of potential escrow funds. I recall that when storm water became an issue at first, there was a response that included creating an escrow for storm water remediation. That morphed from escrows to credits on the purchase price with the purchaser assuming the obligation to participate in the remediation plan. If there are escrows, I wonder if we can reach out to the law firms/banks holding them and gather those funds into some kind of trust/escrow account managed by the city and use the funds to apply to storm water problems. Councilor Knapp pointed out that there may be several methods of collecting escrow funds with property transfers and wondered if there was a way to research how and with whom theses escrows are held and how these could be used for these and like projects. ACM Gravelin suggested speaking with the City Manager to research this further. Discussion turned to the listing of these projects presented by T. Dipietro, with his review of specific details. It was pointed out that Indian Creek and Ridgewood are included as one project. Councilor Emery inquired if City Clerk was informed of this meeting. ACM Gravelin indicated he has kept her advised through e-mail and will review materials with her upon her return. Councilor Dooley referred to a point that Chairman Boucher raised of soliciting by letter to the Secretary of State's office, to grant an extension of this deadline to September 15th Australian Ballot, and the timing conflict between voice vote and the Australian ballot as required by City Charter. As the September 1st deadline is a date determined by the ANR, it was not certain whether the Secretary of State could help. Councilor Emery suggested it would be good to apprise the Secretary of State of the issue. ACM Gravelin will continue discussion with the City Clerk and City Attorney. He presented a draft warning prepared by City Attorney Stitzel and read it out loud to the Council, and is attached to these minutes. Without further discussion, M. Emery motioned to authorize the warning to schedule a public vote at a meeting on August 24, 2009 at 7:00 p.m. for this foregoing purpose, seconded by J. Knapp, and upon vote the motion passed. There being no further business, the City Council Adjourn at 2:25 p.m. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.