City Council

CITY OF SARATOGA SPRINGS CITY COUNCIL MEETING CITY COUNCIL ROOM TUESDAY, JUNE 14, 2005 10:00 A.M. PRESENT: Commissioner Thomas Curley, DPS Michael Lenz, Mayor Commissioner Thomas McTygue, DPW Commissioner Stephen E. Towne, Accounts ABSENT: Commissioner Matthew McCabe Phil Klein, Supervisor Anthony Scirocco, Supervisor CALL TO ORDER Mayor Michael Lenz called the meeting to order at 10:05 a.m. PUBLIC COMMENT PERIOD Mayor Michael Lenz opened the first public comment period. There being no one wishing to speak, Mayor Michael Lenz closed the first public comment period. EXECUTIVE SESSION Mayor Michael Lenz moved and Commissioner Thomas McTygue seconded to adjourn to an executive session to discuss land acquisition. Ayes all. Council members returned at 10:15 a.m. Land Acquisition - Corcoran Property (05-118) Mayor Michael Lenz moved and Commissioner Thomas McTygue seconded to authorize the Mayor to sign a purchase contract for the Corcoran property on Route 50 for $275,000 contingent upon the review of the City Attorney. He further noted that a $10,000 deposit may be required. Mayor Michael Lenz said that although Commissioner Matthew McCabe was unable to be at this meeting, he fully supported these motions. Ayes all. Land Acquisition - CT Male Mayor Michael Lenz moved and Commissioner Thomas McTygue seconded to approve the hiring of CT Male by Behan Associates in connection with the Excelsior Park/Spring Run Trail conveyance. Ayes all. Land Acquisition - Monroe Title & Environmental Assessment Mayor Michael Lenz moved and Commissioner Thomas Curley seconded to approve the hiring of Monroe Title by Behan Associates to do a title search for the Corcoran property and to also hire an environmental site consultant to provide an environmental assessment of the property. Ayes all. Page 1 of 4 City of Saratoga Springs City Council Meeting Minutes Tuesday, June 14, 2005 Land Acquisition - PBA Parcel Mayor Michael Lenz moved and Commissioner Stephen Towne seconded to hire Barry Herbold by Behan Associates to perform an appraisal on the PBA parcel on Weibel Avenue. Ayes all. DEPARTMENT OF PUBLIC WORKS Interlaken Water System Presentation Rich Straut, Barton & Logudice, said his firm was retained to evaluate the potential purchase of the Interlaken Water System by the City. They have done so and the presentation this morning was on their findings. He distributed their report and a summary of findings. They were charged with evaluating the system in context of bringing it into the City=s system. They looked at the capital costs and structuring of those costs as well. He then displayed maps of the area. Rich Straut said the Interlaken water system primarily serves the Interlaken development, however, there is also a trailer park that receives water from this system. There are four wells but they do not recommend that well number three be part of the system. The system has a pump house, emergency generator, a 280,000 gallon storage tank, distribution lines and everything that is necessary to run the system. They currently chlorinate the system through the tank and then repump the water to the distribution system. There is a connection to the City system, but the valve is normally closed. This system operates independent of the City system. Rich Straut said there are four wells rated at a total capacity of 259 gpm based on a 1990 report. There is 370,000 gpd flowing from the four wells. One of the wells is used regularly at 125 gpm. Two of the wells are not currently connected and the third pumps only 20 gpm. The third well has aesthetic issues with cloudiness and smell. They do not recommend that it be connected to the City system. The storage tank is a cast in place concrete tank. It was dive tested a few years ago and a large crack on the bottom on the tank was discovered. There is severe leakage from that crack. Average daily consumption is somewhere between 18,000 and 19,000 gpd. They believe that somewhere between 75 and 80 percent of the pumping capacity is lost daily due to the crack. The wells currently pump about 65,000 gpd into the tank. The pump house has its original equipment and they estimate that it is reaching the end of its useful life. The distribution system has 4,000 feet of ductile iron pipe that is only about 20 years old. They believe that because it is iron pipe, the useful life could be many more years. There is no reason to believe that there is any problem with the distribution system pipes. They did not, however, test the pipes. Rich Straut also informed Council members that there are many types of water meters and the City would need to address that issue. The current Interlaken water system has a psi of about 60. The City=s pressure is at about 100 psi. They are recommending that a connection be made from the City system at Route 9P and Crescent Avenue. The residents of Interlaken would see an increase in pressure. There should be some thought given to pressure reducing valves at the homes. They further recommend that well number three be abandon but to bring the remaining three into the City system. The remaining three would need to be upgraded, redeveloped, cleaned and new pumps may be necessary. They recommend abandoning the water storage tank. He said the booster pumps could also be abandoned. The water would be pumped to the pump house, chlorinated and then pumped to the distribution system. The emergency generator would need to be upgraded. There would also need to be some demolition and regrading. The pump house may need some architectural upgrading. Rich Straut said they estimate the capital cost to be about $490,000 for the above noted items. They estimate the purchase price for the land at $70,000. They reviewed a 20 year debt with an operating cost of $83,800/year. If the Interlaken residents continue to pay what they pay now for water, there would be a 14 year payback on the project. The Interlaken residents currently pay $73.50 per quarter (minimum bill) plus $4.46 for every 1,000 gallons used over 15,000. They also pay an annual maintenance fee of $106. The typical Interlaken customer uses 150 gpd which averages to about $400 per year for water. A resident in the City would pay $81.20 for the same amount of water. He said they estimate an excess revenue of $40,000 per year that could be applied to the debt service. Commissioner Stephen Towne clarified that Interlaken customers would pay the same fees which they are paying now. Page 2 of 4 City of Saratoga Springs City Council Meeting Minutes Tuesday, June 14, 2005 Rich Straut said yes. He said the City could bond the project for 20 years and pay it back in 14. Commissioner Thomas McTygue said it needed to be pointed out that the trailer park currently receives free water. He said there was some agreement many years ago when Bunny Farone was building this project and there was a mishap with the water system that they would be allowed to have water. He said this would be an issue for the City Attorney. They need to pay for water. The County never pursued the issue. He said that the Council needs to be aware that this could create some legal matters. Commissioner Thomas McTygue said the City needs a letter of commitment from the Saratoga County Water Authority that the City is proceeding in the right direction and that they are amenable to this proposal. The price of $70,000 is for the purchase of the land. The cost of the Interlaken Water System is $1. Commissioner Thomas McTygue said the City may need to provide City water during the construction phases of this project. He was also suggested that the City may want to consider installing a pressure reducing valve. Rich Straut said it could be added to the system, however, it complicates the project somewhat. He suggested that the City continue to pump as normal. He said the distribution lines throughout Interlaken should be able to handle the 100 psi. He suggested that perhaps individual homes may want to install pressure reducers. Commissioner Thomas McTygue said it might behoove the City to install a master pressure reducer. Rich Straut said that while many of the homes in Interlaken are at about 60 psi, there are other homes in this area closer to 100 psi. He said DOH recommends near 60 psi. He did not believe that a master pressure reducer was necessary, however, they could be installed at individual homes. Rich Straut said that the City would not likely need to shut down the Interlaken system during construction. Commissioner Thomas McTygue said that his department is in the process of setting up a meeting with the HOA to discuss this proposal. He said there needs to be an agreement that they understand that their rates will not change. He said the City=s water department budget would pay the $70,000 for the purchase of the land the remainder of the $490,000 would be bonded. Commissioner Stephen Towne asked about additional capital costs. Rich Straut said the proposed upgrades to the system should last 20 years. He said perhaps the wells may need to be redeveloped, but the equipment will last 20 years or more. The equipment will require periodic maintenance and those expenses have been included. Commissioner Stephen Towne asked if the four wells were drawing off of the same aquifer. Rich Straut said they believe they are all on the Colonie aquifer, however, one of the wells appears to be on the edge. Commissioner Stephen Towne asked if there was the potential for additional well drilling. Rich Straut said that would depend on the size of the parcel being purchased. Commissioner Stephen Towne asked if was reasonable to assume that there was about 350,000 gpd, excluding well three. Rich Straut said yes. He said there is no reason to suspect that the distribution system cannot handle the 100 psi. They are iron pipes and they can last as long as 100 or more years. Commissioner Stephen Towne asked if 80 percent of the water that is currently being pumped is lost each day due to the crack, is it reasonable to assume that excess of 280,000 gpd could be added to the City system. Rich Straut said that was possible. He reminded Council members though about the Geyser Crest well fields in that they have the potential to pump a certain sustainable capacity during droughts. He urged caution with that same thought for the Interlaken system. Commissioner Stephen Towne asked if it could be a supplement to the City system. Rich Straut said yes. Ken Green, chair of the Interlaken water committee, asked if residents would be able to continue to use their owns wells. Commissioner Thomas McTygue said yes. Ken Green asked if Interlaken would continue to be able to use the pump station building for storage of the maintenance equipment. Commissioner Thomas McTygue said he could not guarantee that request. Ken Green asked if they would be able to continue to water their lawns during restricted times. He pointed out that they have a well to do so. Lou Schneider clarified that there is a fifth well that is strictly used for watering lawns. It does not go through the pump house. Rich Straut said that well was separate from this discussion. He said it was not part of the Saratoga County Water Authority system. David Wallingford, chair Saratoga County Water Authority, said that fifth well is owned by the HOA. It is not part of this discussion. There are only four wells that are tied to the distribution system. Page 3 of 4 City of Saratoga Springs City Council Meeting Minutes Tuesday, June 14, 2005 Commissioner Thomas McTygue said the storage of their maintenance equipment would need to be discussed with the HOA. He would also need to have the City Attorney review the matter. Lou Schneider said that several years ago, the City turned on the water valve to Interlaken and many of the residents had overflowing toilets. He said they will need the pressure reducer. David Wallingford said the Saratoga County Water Authority currently holds 50 psi with a maximum of 60 psi at Interlaken. Ryan Finneran, Interlaken Maintenance Committee, said there was an agreement under the original PUD that the HOA would be able to store their maintenance equipment in the pump house. He said is an important issue and hoped that agreement could be maintained. Commissioner Thomas McTygue said the City would need to look into that matter. He pointed out that there is no formal agreement with the Saratoga County Water Authority for storage of their equipment in the pump house. He said it would be unusual for the City to maintain a storage facility for this HOA when it does not do so for any other HOA. David Wallingford said the County simply let the existing agreements stand and allowed them to use the pump house for storage. Commissioner Thomas McTygue said if they find that the pump house will remain and if there is space in the building perhaps something could be worked out. David Wallingford said the Saratoga County Water Authority will work on a letter of intent for the City. Commissioner Thomas McTygue thanked Rich Straut for the presentation. PUBLIC COMMENT PERIOD Mayor Michael Lenz opened the second public hearing. There being no one wishing to speak, Mayor Michael Lenz closed the second public hearing. ADJOURNMENT Mayor Michael Lenz moved and Commissioner Stephen Towne seconded to adjourn the meeting at 11:00 a.m. Ayes all. There being no further business, Mayor Michael Lenz adjourned the meeting at 11:00 a.m. Respectfully submitted, Kathy Moran Clerk Approved: Page 4 of 4