The Town Council on Monday approved an ordinance authorizing the borrowing of up to $4 million to complete projects and purchase capital items, including the new Johnston High School athletic complex, a ladder truck for the Fire Department and safety upgrades at schools.
“This money will go a long way for much needed capital improvement projects,” said Mayor Joseph Polisena.
The mayor said the bond would be paid utilizing a total of $6 million in “definite dollars” received through settlements with Rhode Island Resource Recovery Corp. (RIRRC) and Broadrock Gas Services LLC. He said $2 million of that figure would be used to cover interest payments.
The town also negotiated an additional $2 million payment from RIRRC in exchange for securing a third-party to operate gas collection and energy conversion at the Central Landfill. Polisena said while that funding is expected, it is not yet secured.
“If we get the other $2 million, we hit the lottery,” he said.
The interest rate on the bond will be 4.25 percent over the course of 15 years, and the mayor said the settlement payments would more than cover the annual bond payments.
“I’m not putting the town in any further bonded indebtedness,” he said. “I’m very, very cautious. This is basically a no-brainer.”
The new athletic complex has been cited as a priority since the announcement of a $3 million settlement with RIRRC last year. The settlement is being split into an initial $1.5 million payment and additional installments over 14 years.
Polisena said there is “electricity in the air” in the community for the athletic complex.
Officials indicated the need for the new ladder truck is particularly pressing. Polisena said the current vehicle is frequently in need of repairs, forcing the town to “throw good money after bad” to keep the truck in service given the wide range of equipment and services – including life support – it provides at various incidents.
“It’s a life safety issue,” he said. “I’m very concerned about the safety of the men and women of the fire department.”
Fire Chief Tim McLaughlin also spoke of the truck’s poor condition. The vehicle’s life expectancy was 20 years, and it is currently in year 21.
“It’s out [of service] all the time … It’s one thing after another,” he said.
The anticipated cost of the truck is roughly $850,000, the mayor said, although the hope is that bids come in lower. The current vehicle will not be kept, he said, and the town will seek to sell or scrap it.
Polisena also noted that the new ladder truck would require slight modifications at the fire station, specifically the raising of the garage doorway to accommodate the vehicle.
The mayor said the town has, for the last three years, sought federal grant money for the purchase of the ladder truck but has been unsuccessful.
“Our firefighters worked feverishly on that grant,” he said. “I’m extremely disappointed in our federal [congressional] delegation.”
The bond approved Monday additionally includes a pledge of up to $1 million to the school district toward efforts to address fire code issues at various buildings, including fire escape windows and alarm systems. Polisena called the upgrades “severely overdue,” and said the town has “worn out our welcome” with waivers through the fire marshal. He also said the services of a fire engineer will be utilized to plan the project.
“That would be a great help to the school system,” said Schools Superintendent Dr. Bernard DiLullo.
The bond will also finance work at Town Hall – including Americans with Disabilities Act compliance, the installation of a lightning rod, new flagpoles and exterior repairs – along with a roof for the Department of Public Works building and a sand shed. Recent bids for the DPW roof came in higher than anticipated, Polisena said, and new proposals will be sought.
Elsewhere on Monday’s agenda, the council approved a new three-year agreement with Rhode Island Laborers Local 808, which represents town employees.
Town Solicitor William J. Conley said the new agreement is “essentially a status quo contract.” The total fiscal impact, he said, will be $5,000 over the course of three years, with no other provisions changed.
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jtaxassoc
I suggest to the readers to read my "Where's the money going" commentary. The bottom line is there is absolutely no need to take out a bond when all you have to do is get realistic with the endless provisions that invite abuse. A month back, it was noted by Tri-Town that just in Johnston alone 1,326 people applied for heating assistance in which this money could have lowered taxes. Peter A. Filippi III
Friday, April 18, 2014 Report this