City Council

City of Saratoga Springs City Council Meeting Minutes Thursday, November 15, 2007 CITY OF SARATOGA SPRINGS CITY COUNCIL MEETING CITY COUNCIL ROOM THURSDAY, NOVEMBER 15, 2007 6:00 P.M. PRESENT: Valerie Keehn, Mayor Commissioner John Franck, Accounts Commissioner Ron Kim, DPS Commissioner Matthew McCabe, Finance Commissioner Thomas McTygue, DPW ABSENT: Supervisor Cheryl Keyrouze Supervisor Joanne Yepsen STAFF PRESENT: Lynn Bachner, Deputy Commissioner, Finance Michele Boxley, Deputy Commissioner, Accounts Frank Dudla, Deputy Commissioner, DPS Michael Englert, City Attorney Eileen Finneran, Deputy Mayor CALL TO ORDER Mayor Valerie Keehn called the meeting to order at 6:00 p.m. PUBLIC HEARING 2008 Comprehensive Budget Mayor Valerie Keehn opened the public hearing on the 2008 comprehensive budget. John Goldberg clarified that there would be a public comment period both at the beginning and the end of the Council meeting. Mayor Valerie Keehn said yes. John Kraus said it appeared that the latest budget documents have changed the tax rate increase from $5.36 to $5.39. Commissioner Matthew McCabe said the numbers had not changed. The $5.36 is the averaged combined rate. The $5.39 is the inside rate. The public hearing on the budget will remain open until the budget is adopted. John Goldberg, Sarazen Street, said the proposed budget was developed behind closed doors without input from other Commissioners. It has been a secretative process. Commissioner Matthew McCabe has made comments that are unsubstantiated. He said that last week that he believed the lease buy back option was illegal and in today’s Saratogian, he said it was questionable. He said that if the Commissioner is going to make statements that something is illegal, there needs to be supporting information. Commissioner Matthew McCabe has formed some anonymous group that arrived at the $8 million figure without input from the committee that spent the last 20 months working on the DPS facility. He said that anonymous opinions are useless. He asked what the City would get for $8 million. He said to adopt a budget this evening would be an insult to all of the contractors/developers who are prepared to respond to the two rfps on November 21. He asked what was the rush. State budgets are adopted late all the time with no recriminations. There is no urgency to adopt the budget. He said that Commissioners Ron Kim and Matthew McCabe need to get into a room together and determine the appropriate number for the DPS facility. Lew Benton, 29 Thorobred Drive, said the committee worked for more than 18 months on this project. They did a comprehensive analysis and strategies to meet the needs of the City. Consultants were used. They looked at renovating the existing space and new construction on seven sites (five public and two private). The reviewed the cost savings by segregating the courts out of the program and they looked at physically segregating the court system. He said that even if City Hall could be renovated, the cost and the disruption to 1 of 5 City of Saratoga Springs City Council Meeting Minutes Thursday, November 15, 2007 services was too much. Last June a development team submitted a proposal in response to an rfp from the City. That proposal was dismissed, even though it included 350 parking spaces. There was some recent discussion on using the Collamer parking lot, but that lot does not meet the City’s standards. He said that in this morning’s paper, he learned that the open, public process that was used by the DPS committee had been subordinated by an anonymous people, citing an unnamed study on an undefined public safety facility. He said this is not planning or budgeting and it certainly does not meet the standards of the City charter. He said it was okay to disagree, but the DPS committee should have been consulted. He said the charter states that the comprehensive budget “shall” include a capital program. He said that Commissioner Matthew McCabe does not have the unilateral authority to remove the capital budget. He urged the Council to take no action on the budget until the rfps have been received. There is more than enough time between now and November 30 to adopt a budget. John Kraus, 227 Grand Avenue, said the solution to the City’s budgetary problems was the $2 million surplus from 2007. He said that hypothetically if the $8 million DPS facility requires $500,000 for financing, then if the City was to add another $4 million to bring the facility to $12, it would require an additional $250,000 making the total yearly payment $750,000. He said the cost should be split between the taxpayers and the City. If the cost is split it drives the tax rate down from $5.36 to $5.19. If the cost was split the $375,000 would come from the taxpayers and the other $375,000 would come from the $2 million surplus. He said that 5 percent of the anticipated 8.8 percent increase is due to normal operational costs. He encouraged the Council to consider a $12 million facility. The public hearing on the 2008 comprehensive budget was closed for this evening, however, will remain open until the budget is adopted. PUBLIC COMMENT PERIOD Mayor Valerie Keehn opened the public comment period. David Bronner, 5 Royal Henley Court, said it had been stated that the City hopes to gain the permit to draw from Saratoga Lake by the end of the year. He said that was an impossible time frame. He noted that DEC has 30 days to review the application to determine if it is complete and there is 60 days for the public to ask for a legislative hearing. There is also a court case that needs to be decided. The City is spending a lot of money on this project. The next Council should be able to take a fresh look at this matter. He said it was time to stop wasting the taxpayer’s money and let the next Council deal with this, unless this Council wanted to pass a resolution to stop this project. Commissioner Thomas McTygue said it is time for the City to move forward on the permit process for Saratoga Lake. There has been a major investment by this community. The election was not about the water issue. He reminded everyone that Skidmore did a poll on the water issue and 42 percent supported going to Saratoga Lake. The Council has continued to pursue the Saratoga Lake option. He said that getting the permit does not build a facility. The permit could be placed on the shelf until the City is ready to do something. If the new Council wants to hook into the County water line that is their prerogative. He reminded everyone that the expenditures to date have been paid for by the users of the system – the $3,000 tapping fee. He said Council should continue to pursue Saratoga Lake. Mayor Valerie Keehn asked about the details of Atlantic Drilling and how they were approved to be on the Spencer property drilling. Commissioner Thomas McTygue said the Spencer family has been stealing water from the City for nearly 15 years. They had an illegal tap off of the city’s main. A neighbor recently turned them in. Bill McTygue said that Atlantic Drilling was subcontracted by Barton & Loguidice as part of the recent approvals by the Council to continue the site investigation work and permitting process. Mayor Valerie Keehn asked if the contract was for fixed amount. Bill McTygue said no. The contract with Barton & Loguidice was to perform the site investigations and the work was subcontracted. Commissioner Thomas McTygue said there are already lawsuits filed on the Saratoga County water line. He said it was important for everyone to understand that if the Saratoga Lake option is stopped and then another future Council decides that it wants to pursue Saratoga Lake, the entire process would need to be started again. He said the County water system is being constructed for a maximum of 6 mgpd and they don’t have any customers. The County is loaning $28 million of the County’s surplus to this project. He said it’s important for the City to get the permit and then simply hold it. 2 of 5 City of Saratoga Springs City Council Meeting Minutes Thursday, November 15, 2007 Joan Winchell, 47 Cliffside Drive, said that affordable housing begins with affordable taxes. An 8.6 percent increase in taxes is not affordable. It’s hard on the seniors and very difficult for the working class people to maintain homes in the City. The DPS facility should take priority over the recreation facility. John Kraus, 227 Grand Avenue, said at the last Council meeting he asked what the increase would be on the water and sewer budgets. He said he wanted to be sure that those budgets would be in balance with the proposed increase. Commissioner Thomas McTygue said the increase would between 4.5 and 8 percent. The water revenues have flattened out due to conservation. He said though that the City has the sixth lowest rate in the state. He reminded everyone that the City has done some major renovation work at the water treatment plant. The City needs to build up the surplus again. The next Council will establish the new rate. MAYOR’S DEPARTMENT Nothing at this time. ACCOUNTS DEPARTMENT Nothing at this time. FINANCE 2008 Comprehensive Budget Commissioner Matthew McCabe said there is a fundamental misunderstanding on what the Council is willing to adopt. He said he took the Mayor’s budget and revised it as he has done in previous years. There are disagreements, however, he has left some room for flexibility to move ahead with the DPS facility. He has put into this budget what he can support and he will not support any more increases. The new Council can address any additional increases. Commissioner Matthew McCabe said that on November 1, 7 & 15 the 2008 comprehensive budgets were presented. The proposed budget has a net reduction of $21,587 in the general fund. This budget includes funding for the DPS facility as well as 21 other capital improvement projects. The proposed general fund budget is at $37,860,442.87. The proposed 2008 capital budget totals $13,298,314 with $11,513.314 of that being bonded which leaves approximately $14 million available to bond. The combined tax rate inside is $5.39, outside is $5.34 with an average of $5.36 per $1,000 of assessed value. This is an increase of 8.63 percent over 2007. On a $250,000 home, the City taxes would be $1,340 which is an increase of $107 per year or $27 per quarter. He said that budgets have been reviewed by Commissioners. No budgets will be stripped between now and adoption and all the necessary City services can be provided under this budget. Commissioner Matthew McCabe said he had previously reviewed the proposed 2008 capital budget. That budget includes $8 million for the DPS facility and $3,513.314, excluding water and sewer projects, to be bonded. Included is the capital program is $2 million for City Hall renovation. The debt service tax levy was reduced by the VLT revenue of $500,000. This amount is enough to cover the new facility’s first year payment. The second year payment of two interest payments and one principal payment is at $610,000. The remaining amounts to be bonded is at $436,666 over 30 years. The VLT money is in a revenue line to be used for the DPS facility. The Council has the obligation to address all of the needs for the City and the flooding and sewer issues on the south side are just as important as the DPS facility. This budget give the City the ability to get off the ground on the DPS facility. Commissioner Matthew McCabe moved and Commissioner Ron Kim seconded to adopt the 2008 preliminary budget and the capital program as presented at the November 1, 7 and 15 meetings. Commissioner Ron Kim said that he would not support this motion this evening. He said that it raises the taxes too high. There is $2 million in surplus that is being placed in the reserve account that could be used for the DPS facility. The community has stated that it wants the Council to act on the DPS facility. He would not support a tax rate that puts this kind of burden on the taxpayers while the budget sets aside this large surplus. He also would not support this motion because there are two rfps out for the design and construction on the High Rock Avenue parking lot with an estimated construction amount of $12 million. There was an rfp for the Woodlawn Avenue site with a lease buy back agreement. That proposal got the City a parking garage. The 3 of 5 City of Saratoga Springs City Council Meeting Minutes Thursday, November 15, 2007 rfps are due in six days and there is no reason to not wait. His office has heard from a number of people on these two rfps. He asked what contractors and developers would think of the City if we continue to release rfps and then do nothing on the project. He said that somehow this community is fine with spending money on a gym but having a difficult time with spending $8 million on a police facility. The myth is that if the City budgets $8 million then the facility will be built and that is not true. None of the estimates for a facility have come back at $8 million. His department has spent the last 22 months with a committee and consultants reviewing this project and there is a good faith estimate with 2009 dollars. He said now that the cost of gas and oil has increased, those estimates could go up. This is the second time the City has spent $30,000 on consultants for a DPS facility. Under former Commissioner Thomas Curley the estimate to construct a facility was at $7 million now the price has increased to $17 million and $60,000 has been spent on consultants and feasibility studies. He did not want the taxpayers to think that a facility was going to get built with $8 million; therefore, he would not support this motion. He pointed out that there is money in the capital budget for the fire station feasibility study but no money to purchase the land. This budget raises taxes too high and he would not support it. Commissioner Matthew McCabe said there is $200,000 included in the capital budget for land purchase. He said that DPS facility and the budget are not myths. If the Council did not approve something now, it was likely that nothing would get approved. He was not sure if the rfps could be reviewed by November 30. He wanted to put a number in the budget to make this project happen. Commissioner Thomas McTygue moved and Commissioner John Franck offered a friendly amendment to remove the $8 million for the DPS facility from the capital budget leaving the remaining funding as is. Commissioner Matthew McCabe reminded everyone that the capital budget can be amended; however, it comes with a cost to do so. Commissioner John Franck noted that if the 2008 capital budget is amended, the payments are simply shifted to 2009. Commissioner Ron Kim said that he was not amenable to the friendly amendment, therefore, withdrew his second to the original motion. There was much discussion on whether Commissioner Kim could withdraw his second to the motion. Michael Englert said that appeared that if the friendly amendment is not friendly, then Commissioner Ron Kim could withdraw his second. Commissioner Matthew McCabe suggested that he could make a new motion which supported the friendly amendment. He said the Council needs to realize that the remaining capital projects need to go on. He was trying to bring the best budget forward. He was not willing to approve a $12 million DPS facility. The south side projects are just as important and they need to be funded. The bottom line is the cost to the taxpayers. This budget addresses the City’s needs and he intended to bring this budget back to Tuesday’s Council meeting. He would not support a budget that did not include a capital program. He asked for a five minute recess. Commissioner Thomas McTygue moved and Commissioner John Franck seconded to recess for 10 minutes at 7:15 p.m. Mayor Valerie Keehn said she wanted to adjourn the meeting. There should be some consideration given to waiting until the rfps were opened. She was not interested in voting on a budget that did not include any funding for a DPS facility. She said she did not want a 10 minute recess. Ayes: three (Commissioner Thomas McTygue, John Franck, Matthew McCabe ); Nays: two (Mayor Valerie Keehn and Commissioner Ron Kim). Motion carried. Mayor Valerie Keehn reconvened the meeting at 7:20 p.m. Commissioner Matthew McCabe said that he intended to bring back the same budget on Tuesday. He said he would not allow a budget to be adopted that did not include a capital program. He asked the City Attorney to do some research on whether Commissioner Ron Kim could withdraw his second. PUBLIC COMMENT PERIOD 4 of 5 City of Saratoga Springs City Council Meeting Minutes Thursday, November 15, 2007 Mayor Valerie Keehn opened the second public comment period. Lew Benton, 29 Thorobred Drive, reminded Council members that the comprehensive budget “shall” include a capital program. Commissioner Matthew McCabe reminded everyone that it is within his purview to edit the proposed budgets. He said this started with the Mayor’s lack of bringing forth a capital program budget. John Kraus, 227 Grand Avenue, said Commissioner Matthew McCabe should not be stuck on the next meeting date of November 20. He said the rfps come in on November 21 and there was still time to adopt a budget by November 30. The Council could schedule a special meeting. He appealed to the Council to look at the $2 million surplus and to use some of that money. He again said that the $700,000 should be split with the taxpayers. It would bring the tax rate down to $5.32 or 7.7 percent increase. John Goldberg, Sarazen Street, said he was disappointed in Commissioner Matthew McCabe. He said the taxpayers do not understand what the $8 million represents. Commissioner Matthew McCabe said this is an aggressive budget. He said that we don’t know what the $12 million represents. John Goldberg said yes we do – there have been plans from the consultants. ADJOURNMENT Mayor Valerie Keehn moved and Commissioner Matthew McCabe seconded to adjourn the meeting at 7:25 p.m. Ayes all. There being no further business, Mayor Valerie Keehn adjourned the meeting at 7:25 p.m. Respectfully submitted, Kathy Moran Approved: Clerk 5 of 5