Leases Due Now by Ed Wainwright

Approve negotiated leases for Region 12 elementary schools now

Newstimes/Spectrum

Posted: 02/04/2009 09:54:01 PM EST

To the Editor:

Region 12 has been trying to solve the elementary school buildings issue for seven years.

In 2006 a number of referendums failed regarding consolidation and renovation of the town schools.

In 2006 and 2007 the towns brought forth formal town proposals prepared by architects for renovations of the local schools.

In 2007 and 2008, after much deliberation with an independent evaluation of these proposals, the June 2008 deadline for submission to the state of Connecticut was missed.

The lease committee was working with the town selectmen since August 2007 on long-term leases containing a list of prior repairs submitted by the towns.

In November 2008 the lease committee reached agreement in principle and agreement on the lease language. The cost of the town school repairs list is just under $1.8 million.

Assuming a 20-year bond, on average these repairs will cost less that .05 percent of the annual school budget.

After using the current year repair budget of $100,000 and using the 1 percent fund, the bond would be less than $1.4 million.

Here are reasons to approve the negotiated 20-year lease now:

1. It is important capitalize on the low interest rates and the goodwill created by the lease committee. This is first time the town officials and the region are in agreement on this subject.
After all this time and effort, it is prudent and ethical to approve the leases. To shelve the 20-year lease indicates the region was not negotiating in good faith.

2. The annual cost of the elementary school repairs is less than the annual cost of the repairs of the Shepaug Middle School/High School building.

3. It is unlikely there will be a repair and maintenance referendum this spring, if further changes are made and must be vetted, since the budget referendum must take first priority. There will not be enough time between the first week of April and the first week of May (when the first budget referendum is required) to hold a repair and maintenance referendum.
It takes six weeks to go through process of a hearing and the 30-day period. So the repair/maintenance referendum will take place after the budget and the current leases expire on June 30.
Then the 20-year lease renegotiation will occur in the fall of 2009 to adjust the lease language and repairs list to reflect the maintenance referendum.
With the region and towns in agreement now, why open another negotiation cycle later this year?

4. One immediate benefit of approving the negotiated 20-year lease now, is the Burnham school fuel oil tank is eligible for state reimbursement.
This means $20,000 of state aid that the region could receive to assist with the cost of this replacement.
Whereas, if the 20 year lease is shelved, this replacement job at Burnham will be completed before the 20 year lease is in place and therefore there will be no state aid.

Ed Wainwright
Bridgewater