June 7, 2019

CT Construction Digest Friday June 7, 2019

Lamont seeks special session to decide highway tolls
Mark Pazniokas
To no one’s surprise, Gov. Ned Lamont said Thursday he will use his authority to call the General Assembly into special session this summer in a renewed effort to return tolls to Connecticut’s highways. There is no guarantee, however, legislators will answer that call.
House Speaker Joe Aresimowicz, D-Berlin, supports the use of tolls to finance the modernization of the state’s aging transportation infrastructure, but he warned that the governor and his allies need to regain the public-relations battle lost to opponents.
“At best — at best — tolls are a 50-50 proposition in this state,” Aresimowicz said. “And those that are working very hard to disrupt that are putting a lot of misinformation out there.”
Aresimowicz’s comments reflect a belief among lawmakers that the Lamont administration botched the rollout of tolls in February, giving Republicans, the trucking industry and others an opportunity to frame tolls as just another demand on residents.
Before there is a call for a special session, there needs to be a new plan.
“I agree with the speaker in the sense of a reboot,” said Ryan Drajewicz, the governor’s chief of staff. “Now that we are out of session, the boil is now coming down to a simmer and eventually cooling off. What we want to do is really go back to where we initially started, where this is too big of an issue for the administration itself to take on.
“What we want to do is convene leadership from both sides of the aisle.”
The governor said Democrats and Republicans agree that the state needs between $700 million and $800 million in new annual revenue for transportation. The fight is over where to find those dollars.
The part-time General Assembly ended its annual session at midnight Wednesday, two days after the passage of a $43 billion, two-year budget. It erased a projected shortfall of $3.7 billion without raising income taxes and leaves the state with budget reserves of $2 billion.
“That’s the national headline,” said Lamont, a Democrat and former small business owner who took office in January. “This is a state that had a tough time over the last couple of decades and I think it sends a message loud and clear that this is a fresh start for the state.”
With the budget resolved and the regular session over, the question now is whether the administration has a better chance of finding a path to tolls. So far, Republicans, especially in the House, have been inalterably opposed to tolls.
“We are genuinely open to the other perspectives, and we are going to aggressively pursue that. It’s not going to be our way or the highway,” Drajewicz said. “It’s going to be an honest effort to put all ideas on the table. We’d be foolish to go into special session with a rinse and repeat sort of approach.”
Legislators adopted their own limited call to return in special session, confining the agenda to adopting a bond package for school construction and other capital projects. But they acknowledge another try to find new revenue for transportation awaits them.
There seemed to be little appetite Thursday for exploring whether Bridgeport Mayor Joseph P. Ganim should be given a chance to bring a casino to his city. The tribal owners of the state’s two casinos say they are willing to open a small casino, investigating $100 million in the city, but only if Ganim can convince the state to give them exclusive rights to sports betting and other financial inducements.
“My sense is, the tribes deal still seems a little half-baked to me,” Lamont said. “So I don’t know if it’s to be worth going into special session.”
Tolls are back at the top of the governor’s agenda.
If Republicans stay on the sidelines, the margins for success are thin: The consent of 76 of the 91 Democrats in the House and 18 of the 22 Democrats in the Senate. Democrats say privately that they currently see 14 solid yes votes, four hard no votes, and four open to persuasion.
Aresimowicz said he believes he has the sufficient votes necessary for passage in the House.Lamont acknowledged talking to lawmakers skittish about the issue.“We’re going to deal with this head on,” Lamont said, describing dozens of lawmakers telling him they understand the need for tolls. He said they say, “Probably you’re doing the right thing, governor. I understand that. But it’s a tough vote for me to take.”

Residents' objection to project cost increase sparks suit in Newington
Erica Drzewiecki
NEWINGTON - A group of residents is suing the town for violating their rights as citizens by raising the cost of the Town Hall project.
They’re alleging that voters in a November 2017 referendum approved spending for the project, but the Town Council has raised that amount by $2.8 million.
This is a triple violation of the Town Charter, according to a lawsuit filed by attorney Timothy Herbst in Connecticut Superior Court on Tuesday,.
The 13 plaintiffs have made a case against the Town of Newington, specifically Town Manager Tanya Lane, Town Clerk James Krupienski, Mayor Roy Zartarian and the Town Council. They are seeking a court hearing to cease construction until further notice and hold another referendum for voters to sanction the new cost if they see fit.
“The plaintiffs believe there exist at least three separate violations of the town charter and are seeking to have a court not only enforce the charter but issue a mandamus directing the town to schedule another referendum,” Herbst explained.
The group will have its day in court, but when exactly has yet to be determined.
“It was filed electronically with Superior Court today so it’s a question of when we will be assigned a date,” Herbst said Tuesday.
His firm, Cohen and Wolf, is based in Orange, where he practices municipal, land use and zoning law.
“We have never dealt with an issue like this specifically, but our firm is very well versed in mandamus relief,” Herbst said. “We’ve represented municipalities before and we’ve brought actions against municipalities before.”
The lawsuit’s first named plaintiff is Michael Camillo, a member of the Town Planning and Zoning Commission and owner of West Hill Automotive Truck & Trailer in Newington. The other plaintiffs include Dana Havens, an administrator of the popular What’s Happening in Newington Facebook page. Many of those posting to the private page over recent weeks and months are discussing the controversy.
The lawsuit references Section C-408 of the charter, requiring voters to approve a special appropriation exceeding $975,000. It also refers to Section C-303, dictating the responsibility of the town attorney to represent the council and other town boards and commissions.
Town Attorney Ben Ancona’s legal opinion advised against appropriating the $2.8 million without voters’ consent.
“I believe it would be illegal to circumvent the obligations of our Charter and the intent of the electors by applying taxpayer funds from other accounts to exceed $28.8 million without the prior further consent of the voters,” Ancona said.
Lane sought a second opinion from attorney Richard Roberts, who had a different take on the matter.
“While there may have been an understanding by voters reading the explanatory text that the project would not cost more than that amount,” Roberts said, “such an interpretation does not prevent the Town Council from exercising its independent powers under the charter to make additional appropriations if necessary.”
The lawsuit alleges that it was illegal for Lane to seek and follow this second opinion.
Residents are torn over the issue, some taking the side of the plaintiffs and others wanting the long-awaited project to continue despite the overage.
During a Feb. 19 meeting, the council was urged by dozens of citizens to approve more than a half-million dollars for a gym expansion and equipment in the new community center. These are two of the items that went on to raise the final cost. One letter was signed by 39 families endorsing the double gym, which they agreed is necessary for youth basketball.
On March 12, the council voted 6-3 to raise the GMP. The lawsuit alleges that “this improperly contravened Ancona’s legal opinion and relied on the unauthorized legal opinion provided by Roberts.”
The second count alleges, “By failing to follow Ancona’s legal advice and violating the relevant provisions of the charter, the defendants have denied the plaintiffs the right to exercise their constitutional rights as concerned citizens and taxpayers to vote on issues of public concern involving taxpayer dollars. Those rights will be forever denied and lost, causing the plaintiffs and all other electors to suffer irreparable harm.”

Hilton Hartford seeking city’s help for multimillion-dollar renovation
Joe Cooper
One of downtown Hartford’s largest hotels is asking the city to help it secure a multimillion-dollar federal loan for room renovations.
The city council on Monday is scheduled to vote on a resolution that would authorize Mayor Luke Bronin to amend the Hilton Hartford's existing ground lease for three parcels at 315 Trumbull St. so the city could seek a $4.7 million loan from the U.S. Department of Housing and Urban Development (HUD) on behalf of hotel owners, The Waterford Group.
The Waterford Group, which also owns Hartford Marriott Downtown, says a renegotiated ground lease and subsequent federal loan would be used to upgrade its 393 guest rooms and suites, city records show. The renovations, it says, are required by the Hilton brand and its licensing agreement.
The renovations would add to the ownership group’s recent $1 million investment into a new food market located in the Hilton’s lobby.
Mayor Bronin’s office and The Waterford Group could not be reached for comment Thursday morning.
The Hilton last underwent a major renovation in 2011 after its owner reached a deal with the city council to provide the hotel tax breaks and a $7 million HUD loan. The agreement required the hotel to pay a base rent to the city instead of it being subject to real property taxes.
City and hotel officials at the time lauded the finance restructuring deal as saving the hotel from closing, leading to a loss of 140 jobs.
The Hilton currently employs approximately 130 low- to moderate-income workers at the hotel, which includes 15,000 square feet of flexible space, meeting space and a bar and restaurant, city records show.

Massachusetts Communities Hit by Gas Blasts Receive $80M to Repair Infrastructure
ANDOVER, Mass. (AP) The utility blamed for a series of natural gas explosions in Massachusetts in September has agreed to pay $80 million to three communities to cover road repairs and other associated costs of the disaster, officials announced May 7.
The explosions and fires Sept. 13 in Lawrence, Andover and North Andover were triggered by over-pressurized gas lines. One person died, dozens were injured and more than 100 structures were damaged. Thousands of customers were left without natural gas service, including heat and hot water, during the winter months.
"We all wish the number was higher, but if you take into account the time value of money and the cost of lengthy litigation into account, this is a good deal," Lawrence Mayor Daniel Rivera said at a news conference to announce the settlement with Columbia Gas of Massachusetts.
Rivera, who has been highly critical of Columbia Gas, said it takes the financial burden of repairs off taxpayers.
Nearly $62 million of the settlement has already been paid to the communities, Andover Town Manager Andrew Flanagan said.
Flanagan said it would take several years for his town to see all the benefits of the settlement.
Of the $80 million, $57 million will pay for repairs to about 50 miles of roads that had to be dug up for gas main replacement.
Columbia Gas President Mark Kempic called the settlement the "best possible outcome" and thanked the communities for their "strength, patience and resilience."
"We wish this didn't happen, obviously. However, our goal now is to put people back into the position they would have been if it didn't happen," Kempic said.
NiSource Inc., the parent company of Columbia Gas of Massachusetts, said in a quarterly report to investors that the potential financial costs of the disaster have jumped to more than $1.6 billion.

Gov. Lamont to host bipartisan talks with party leaders on tolls
PAUL HUGHES
HARTFORD — Gov. Ned Lamont vowed Thursday to call the state legislators back to vote on highway tolls, while House Speaker Joe Aresimowicz gave tolls a 50-50 chance for passage.
Lamont said he plans to hold bipartisan talks with legislative leaders to try to map a route forward on highway tolls after the legislature adjourned another session Wednesday without authorizing development of an electronic tolling system.
“We’re going to sit down with the leadership in the next couple of weeks and work on this collaboratively, but we are going to get it done,” he told reporters.
An agreement between Democrats has proved elusive, let alone an overarching bipartisan deal given the continued Republican opposition to tolls and insistence on the GOP alternative plan that relies on state bonding and matching federal funds.
No matter how the bipartisan talks go Lamont reiterated his intention to call the legislature back in a special session to vote up-or-down on highwy tolls.
He said Republicans and Democrats agree the state needs to spend $700 million to $800 million a year to move beyond just maintaining transportation infrastructure and systems to fixing the underlying problems and building out.
“Obviously, the Republicans want to borrow more. I’d like to use a user fee via electronic tolling, and we sit down and see if there is some middle ground there, but at the end of the day I’m not going to let people avoid a tough vote because it is the most important thing we can do to get this state moving,” he said.
House Speaker Joe Aresimowicz, D-Berlin, only gave tolls a half-chance of passing the legislature at this time when he handicapped a toll vote Thursday for reporters.
“At best, at best, tolls are 50-50 proposition in this state,” he said.
Aresimowicz said toll opponents have effectively spread misinformation, and a big part of the challenge in building support is going to be counteracting all that false and inaccurate information.
To improve the odds of passage, he said legislators and the public need to be given the lowdown on the financial shape of the Special Transportation Fund, the strict federal limits on how toll revenue can be spent, and oversight.
“Once those things get out there, OK, maybe we improve it, it is a little bit better than 50-50,” Aresimowicz said.
Nearly 60 percent of Connecticut opposed tolls in a poll that The Hartford Courant and the Sacred Heart University released last week. The level of opposition was virtually unchanged from a March poll.
“Connecticut already has enough taxes and a high cost of living. Businesses and people are moving out. Tolls on the highways will just make it worse,” said Patrick Sasser, founder of No Tolls CT, a grassroots opposition group.
Members of No Tolls CT were a regular presence at the state Capitol in the final days of the 2019 session.
Both Aresmowicz and House Majority Leader Matt Ritter, D-Hartford, said tackling tolls in a special session could be advantageous because there will be no other competing legislative business or distractions.
“Maybe it is better in a special session when you’re focused on that issue only,” Ritter said.
Democratic leaders have yet to show they can line up the Democratic majorities needed to approve a tolling plan. It takes 76 votes in the House and 19 votes in the Senate, or 18 votes, plus the tie-breaking vote of Lt. Gov. Susan Bysiewicz.
Aresimowicz continued to assert Thursday that he had enough votes in his 91-member caucus, but he also continued to qualify that claimed support.
“As far as the 76 votes for tolling, we have that. What we don’t have is the 76 votes for a tolling plan that is a plan the Senate feels comfortable with, and that would eventually get the governor’s signature,” he said.
Lamont and Democratic leaders negotiated a plan to toll Interstates 84, 91, 95 and the portions of Route 15 that comprise the Merritt and Wilbur Cross parkways.
Aresimowicz and Ritter said the governor’s office and Democratic leadership are not wedded to that legislation, and there is now more time to negotiate a revised tolling plan.
“What that looks like, and how the votes go, and what the Senate is able to do is still up in the air until we see a final plan,” Aresimowicz said.