June 22, 2000

A work session of the Jamestown Town Council was called to order at the
Jamestown Philomenian Library, 26 North Road at 7:30 PM by Council
President David J. Long.

  The following members were present:

Kenneth G. Littman
Craig A. Amerigian
Bruce W. McIntyre
David Swain

also present were:
Maryanne Crawford, CPA, Town Administrator/Finance Director
Arlene D. Kalooski, Town Clerk

guest speakers present were:

David Ferrara, Esq., Bond Attorney

Anthony B. Simeone, Executive Director, Clean Water Finance Agency

John J. Manning, Principal Sanitary Engineer, Office of Water Resources

Council President Long noted that this work session was scheduled for the
purpose of discussing options for the financing of the installation,
expansion, construction and improvements of sewers, storm drains, pumping
stations and sewage treatment and disposal facilities.  

Mr. Manning, coordinator for the Department of Environmental program,
informed the Council that Rhode Island offers low interest rate financing
for projects of this nature.
      Additionally, Mr. Manning noted that in preparation for applying for
financing through RI Clean Water Financing, Jamestown should consider the
following criteria: 

  1) request placement on the Department of Environmental Management
priority list

  2)  apply for a Certificate of Approval for the project

  3) provide impact statements for an environmental review

The complete process takes approximately forty days and can be done at the
same time that the Town applies for financing.
Mr. Simeone presented an overview of the State revolving funds made
available through Rhode Island Clean Water Financing.
      Interest rates offered can fluctuate; however, they are well below
the market rate.
       Funds could be made available to complete the approved project,
with a three (3) year construction draw period whereby interest only
payments would be made on money drawn.
      When the project is complete the full principal interest is not due
until one year following the completion.
      Up-front interest payments could be capitalized, allowing an
increased amount available for borrowing.
       Presently the interest rate is at approximately 3.5% and 4.0%. 
The Town Administrator presented the following four (4) bond amortization

     level debt payment with a 6% interest rate
     level principle payment with a 6% interest rate
     level debt payment with a 4% interest rate
     level principle payment with a 4% interest rate

The Town Administrator suggested setting a sewer assessment fee for the
bond payment as opposed to increasing the rate structure.
      At present, there are approximately 900 sewer users on the system.  

Counselor Ferrara informed the Council that the question relating to the
borrowing of funds should appear on the November 7, 2000 ballot. 
Mr. Simeone noted that the State of Rhode Island is convinced that there
is such a great need to encourage waste water management they are
considering offering 0% financing.

Council President Long invited comments and questions from the audience.

Jerry Cook, 75 Hamilton Avenue, commented that if this charge were on his
tax bill it would then be tax deductible, whereas his water bill is not.
      Mr. Cook further stated that the municipal water system is a benefit
to the entire community, similar to the school; whether you have children
in the school or are connected to the system

Richard Allphin, Clarke Street, noted that as a user he is not objecting
to paying for it; however, suggested cost be based on usage.
      Mr. Allphin further stated that he believed this would help conserve

Richard Hines, 1088 East Shore Road, stated that the basic issue is who
pays for it and what possible rationale can be used for charging residents
that are not on the system.
      Non users have their own expenses in the up keep of their septic

Other residents in favor of costs being paid by the users of the municipal
water system were:

Philip Willis
David Martin
Donald Forrest
Gary Girard

Discussion continued, with comments from several residents expressing
their concerns regarding the costs of being on the municipal system vs.
the maintenance of septic systems by residents not on the system.

There being no further discussion, the work session ended at 9:20 PM.


Arlene D. Kalooski
Town Clerk