FINANCIAL BUSINESS REQUEST (FBR)
Motion/Request:
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MOTION to authorize the transfer from Account #21090305-58915 (CNR-Undesignated) to Account #21070101-57300 (CNR-Board of Education-New Equipment) and to authorize the appropriation of up to $400,000 from Account #21070101-57300 (CNR-Board of Education-New Equipment) for the emergency replacement of the Chiller at the Gales Ferry School.
Upon future issuance of tax-exempt bonding reimburse such funds to Account #21090305-58915 (CNR-Undesignated); and,
In anticipation of such reimbursement, declare the Town’s official intent under Federal Income Tax Regulation Section 1.150-2 that project costs may be paid from temporary advances of available funds and that (except to the extent reimbursed from grant moneys) the Town reasonably expects to reimburse any such advances from the proceeds of borrowings in an aggregate principal amount not in excess of the amount of borrowing authorized above for the project
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Background:
Town Council Meeting July 9, 2025: At the Board of Education request, a Bid Waiver was granted to the Tradesmen of New England.
However, a funding source was not identified at that time.
Board of Education July 8, 2025 Meeting:
At their July 8, 2025 meeting the Board of Education requested the Town Council grant a Bid Waiver to their current HVAC service provider (Tradesmen of New England) to replace the Chiller at the Gales Ferry School that recently failed
The Board of Education requested $380,000 in the Fiscal Year 2025/2026 Capital Budget to replace the Chiller at the Gales Ferry School. Recently the Chiller failed and based on the urgent need to replace the Chiller before the start of the new school year the Board of Education has requested a Bid Waiver to use their current HVAC service provider the Tradesmen of New England to do this work. (please see attached Letter, Proposal, and equipment cost)
In his letter dated July 8, 2025 BOE Chairman Anthony Favry noted the cost and logistical advantages provided by this vendor as follows:
• Cost Savings; The replacement chiller unit from this vendor is being offered at cost, saving approximately 20% compared to market pricing. Alao, as part of their ongoing contract negotiations, the vendor has agreed to credit the Town a minimum of $30,000. This would bring the total project cost below the bond bonding authorization approved in this year's budget.
• Timeline: The selected unit can be delivered in two weeks, whereas the only other viable option has a delivery lead time of 19 weeks, With school starting in late August, this accelerated timeline is critical to ensure a safe and functional learning environment for students and staff.
• Budget Compliance: The funding for this project was approved as part of the current fiscal year's capital bonding allocation, and the proposed solution keeps us within the approved budget.
Department Comment/Recommendation:
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Finance Director Comment/Recommendation:
While this project was identified as bondable in the Capital Improvement Plan that was part of the FY 2025-26 approved budget, such projects still require formal appropriation and bond authorization by the Council and any other necessary channels (Town Meeting and Referendum if needed based on dollar threshold) as dictated by the Town Charter.
Mayor Comment/Recommendation:
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