City Council

CITY OF SARATOGA SPRINGS CITY COUNCIL MEETING CITY COUNCIL ROOM TUESDAY, January 6, 2009 7:00 P.M. PRESENT: Scott Johnson, Mayor John Franck, Commissioner of Accounts Ken Ivins, Commissioner of Finance Ron Kim, Commissioner of DPS Anthony Scirocco, Commissioner of DPW PRESENT: Matthew Veitch, Supervisor Joanne Yepsen, Supervisor STAFF PRESENT: Michele Boxley, Deputy Commissioner, Accounts Patrick Design, Deputy Commissioner, DPW Eileen Finneran, Deputy Commissioner, DPS Kate Jarosh, Deputy Commissioner, Finance Shauna Sutton, Deputy Mayor Joe Scala, City Attorney RECORDING OF PROCEEDING The proceedings of this meeting were taped for the benefit of the secretary. Because the minutes are not a verbatim record of the proceedings, the minutes are not a word-for-word transcript. CALL TO ORDER Mayor Johnson called the meeting to order at 7:00 p.m. PUBLIC COMMENT PERIOD Mayor Johnson said the public comment period is limited to a total of 15 minutes and individuals are limited to two minutes each according to the rules approved in February of 2004 by the City Council. Kyle York of 59 Railroad Place stated at the last meeting the idea of a Blue Ribbon Committee for parking was mentioned. He stated he believes we need a new public safety building; a building for this decade. The City has tried to make this happen, taxpayers are not willing to put up the money for it and the City Council hasn’t been decisive about putting up a huge bond. There are two comprehensive proposals that depend heavily on paid parking. He said that the Blue Ribbon Committee would be the worst thing to do as each person who would be selected has already made their position known. The committee is not needed, but information is. He recommended a website for the parking industry and discussed cities that need it; www.parkingtoday.com, and a universal expert, Donald Shoup, from UCLA and author of High Cost of Free Parking and another person/expert is Alex Garvin is a New York City planner and author of The American City: What Works What Doesn’t. Dave Bronner of 5 Royal Henry Court stated the proper signage is now posted in the Putnam Street garage; kudos to public safety for getting it done. He noted that there is an ongoing problem at the Arterial and Van Dam with clearing crosswalks; the responsibility rests with the hotel and the owner of the old City Council Meeting 1/6/09 firehouse building. This week public works cleared those walkways upon his pointing it out. He was also astounded by the article on the complete streets initiative and he said there are more things to get done in this City when all of a sudden this thing pops up. He said this is a walkable City and a bikeable City; this is a waste of time and potential big bucks, and it is interesting that the individual pushing this doesn’t live in the City. The individual should be told if you want to do this, start a foundation, raise some money, then come talk to us. This issue should be removed from tonight’s agenda. Mark Mincher of 186 Geyser Road spoke in favor of using a Project Labor agreement (PLA). He feels it will be beneficial to the City and residents. He offered to provide any information needed on PLAs. Ian Kleppetar of Wilton stated he is the one who brought up Complete Streets. He said that in the past year he has traveled all over the country doing bike advocacy work and one of the things that bonds these cities is a Complete Streets program. He said that Complete Streets brings life to the city, vitality to the businesses, health to the individual, and decreases demand for parking issues. He works in Saratoga because he feels there is potential for health transportation issues. PRESENTATION Commissioner Franck stated it is the time of the year when they gear up for assessments. He wanted to discuss/explain how New York State Law affects assessment of condominiums. He has been an advocate since he has been in office to get NYS to change this law. They are going to try to take another step in the next few days. A condominium is a form of ownership, not a building style. Condominiums can also be of a townhouse style developments. New York State allows any kind of residential development, including single family homes, to form a homeowner association. The only requirement is commonly owned land. This is currently being done in Amherst and Long Island areas. Commissioner Franck explained that it started with the Condominium Act of 1964, which was adopted under Article 9B of the Real Property Law (RPL), called the Condominium Act and it has been here ever since. Section 339 of the RPL dictates how condos are assessed. The original reason for this law was to prevent municipalities from skyrocketing the assessments in the building. Condominiums started in New York City, when an owner of the building decided to sell off units rather than the whole building. Section 339Y requires assessors to assess condos differently than the traditional single family homes. Condo assessments are not based on the sale price of the individual unit, but on the value of the development as a whole. He explained that when a new house is built in Saratoga, the price of the house is assessed to be the sale price or sales approach when they do a re-evaluation. They are not allowed to do that under Section 339Y. This requires the assessor to evaluate a condo based upon their potential to earn rent; nothing to do with the price. They are stuck to use the income approach rather than the sales approach. Commissioner Franck gave an example of a single family home of 3,651 square feet, and a condominium of 3,685 square feet. The properties were sold about 2 months apart in 2008. One year after the sale, the assessed value of the single family home is $485,200 and the assessed value of the condo is $453,255. Assessed value is at 78%. The sales price of the single family home was $575,600 and the condo sold for $1,315,000. The condo is assessed at a 56% discount because of Section 339Y. He said that this is prevalent throughout the city because we can’t go higher than fair market rents. The fact that the condo unit has never been rented or may never be rented is irrelevant under New York State law. Commissioner Franck used Water’s Edge as an example of a development that could have been built as a condominium development rather than a homeowner’s association. If it had been built as a condo development, those properties would be assessed for 50 – 60% less. A 3,000 square foot property on the water versus a 3,000 square foot property on the hill with a partial lake view would be assessed for the same price. Under condominium law you take the whole project and divide by square footage. If Geyser Crest said they decide to call that a condominium association because they have common land, the City would take a loss on assessment values. He said that if there is common land, any development can form Page 2 of 14 City Council Meeting 1/6/09 a condominium association. There would be a break for new people going in to new units, but the law is unfair to the assessment situation throughout the City. He said there are inequities in condominium assessments because Section 339Y also places a ceiling on the aggregate value of the units. When a condo is assessed, it has to be assessed before it is built; not much information is provided. Sometimes you get a general idea of the square footage of the units and/or a general idea of the flavor of the building. Then you take the whole building, subtract common areas (hallways, stairways, pools, etc.) and the rest is living space. Then we have to figure out what we can get per square foot in Saratoga Springs and divide the whole thing to come up with the assessment. All assessors across NYS are working blind on this. The ceiling provides a built in assessment cap. It sounds like many of the condo owners are getting a break, but many aren’t. If one condo is in the middle of the building with no windows and another condo of the same square footage is on the top floor with windows all around, the assessment is going to be the same. The condo on the top floor could sell for $80,000 - $90,000 more than the middle condo, but both are assessed the same. The amenities mean nothing. Commissioner Franck said that currently, Saratoga Springs falls in the 1 - 5% of total parcel buildings being condos, but in the next 5 years, we will be 5 – 10% based upon what is currently being built and what is proposed to be built. This is becoming a little more material of our tax base. One of the next moves that Commissioner Franck is proposing is to ask Senator Little to re-introduce her bill. The current bill in 2008 (S1058) never got to the floor, so it has to be re-introduced. They are going to ask new Senator Roy McDonald to work with them to support the Senate Bill and Assemblyman Tedesco to support the Assembly companion bill. Commissioner Franck said that at the suggestion of supervisor Veitch, a meeting has been scheduled for Thursday morning at the County Board of Supervisors, and they also want to meet with Supervisor Art Johnson because of his past experience as an assessor in Wilton. He said that previously there has been no cohesiveness in getting this through so they are trying to get the various counties to work together to make this equitable for everyone. Commissioner Franck is also going to solicit his fellow Councilmen and Mayor to do a resolution to back Senator Little’s legislation to remove limitations on assessments of condominiums as of January 2010.. At the next Council meeting, they will be producing a resolution. He believes the people who are in condos should be grandfathered in. This has to be a legislative move in Albany. Hopefully with Senator McDonald’s help, they can move forward with these changes. Commissioner Franck said that a change in the law would erase the inequities in the system and in this time of fiscal crisis the time is right for this effort. Mayor Johnson asked if Commissioner Franck will submitting more details of what he is offering to the Council prior to the next Council meeting. He said he would wait for more information to be brought to the council on the 20th before soliciting comments from the Council. Commissioner Franck stated he wants to see how the meeting goes with Senator McDonald. He would like to introduce at the next meeting for discussion a resolution similar to those presented in other municipalities. He is also going to ask the school to do a new resolution through the Board of Education. EXECUTIVE SESSION Mayor Johnson moved and Commissioner Ivins seconded to move to executive session regarding proposed, pending or current litigation; personal private information of a person or corporation, or matters leading to the appointment, employment, promotion, demotion, discipline, suspension, dismissal or removal of a person or corporatio n, including but not limited to the ongoing investigation in 2007 involving the DEC and the Department of Public Works. Mayor Johnson reported one matter was resolved in Executive Session. The matter was pending before the State of New York Department of Environmental Conservation (DEC) in the matter of the violations of Articles 17 & 27 of the Environmental Conservation Law (“ECL”), Article 12 of the Navigation Law of the Page 3 of 14 City Council Meeting 1/6/09 State of New York and Title 6 of the Official Compilation of Codes, Rules and Regulation (“6 NYCRR”) of the State of New York against City of Saratoga Springs, Respondent. Council voted 4 in favor, 0 against, and 1 abstention by Commissioner Kim to enter into a consent order with the DEC to resolve the 2007 investigation of activities of the City primarily involving the DPW garage as well as the compost facility. The proposed consent order provides as follows: o The City agrees to allocate $185,000 to develop environmental benefits projects within the City limits. These are projects that will be directed within the City to improve, restore, protect and/or reduce risk to public health and/or the environment. Beyond that, achieve by the City’s continued compliance with applicable laws and regulations of the State of New York. o The City agrees to pay $50,000 as a civil penalty and $35,000 in administrative costs to be reimbursed to the DEC in the State of New York in the context of its investigation. Mayor Johnson stated that this is a matter that was pending when this administration started and goes back to matters in 2007 and before. The City was faced with overwhelming evidence through assessment by Council that there was some issue to be dealt with, some problem to be rectified, or some remediation that needed to be done. It was the opinion of counsel that was adopted by City Council this evening that we should enter into the proposed settlement as recited. Mayor Johnson explained that if the City had not entered into this consent order, we would be looking at fines that are in excess of multiples of millions of dollars. This is a chapter that is better left behind us as a City. He asked the City to accept this settlement as a good settlement on behalf of the City; the Council are the fiscal watchdogs on behalf of the City and collectively recognized that they are doing what they thought is best for the City solely from a business point of view. A press release was made available. Commissioner Scirocco stated he was pleased with the outcome. The DPW continues its commitment to work with the DEC to make sure they do things the way they should be done in the City. He believes they reached a favorable settlement. They look forward to specialized training for the DPW employees and continuing to upgrade his department as required by the consent order. Commissioner Kim explained his abstention was caused by not having received the consent order until 3 p.m. today. He said he did not have a chance to fully read the document and digest it. He has no complaints with the presentation to the Council in session. He said that if he was going to vote to spend money they didn’t have he should at least have the opportunity to read the document. He stressed that his abstention was not because he didn’t think it was wise for them to settle this, he didn’t vote because he didn’t have an opportunity to read it; that’s why he abstained. Mayor Johnson noted this matter has been discussed by City Council in session for months with an update to the Council by the City Attorney and himself as to the status of the ongoing negotiation. This is not something that just arrived today as far as a resolution or an issue to be resolved by the Council. Commissioner Scirocco stated he likes the idea of the EBP (Environmental Benefits Project). It is an important aspect of the settlement and the City has agreed to allocate $185,000 toward it. This money goes towards local environmental projects for the benefit of the community. Consent Agenda Mayor Scott Johnson moved and Commissioner Scirocco seconded to approve the consent agenda as follows: 1. Approval of 12/16/08 City Council Minutes 2. Approve Payroll 1/2/09 $242,966.92 3. Approve Payroll 12/19/08 $414,838.84 4. Approve Payroll 12/31/08 $216,935.84 Page 4 of 14 City Council Meeting 1/6/09 5. Approve Payroll 12/26/08 $467,831.43 6. Approve Warrant 2008 Mid MC8DEC08 $67,417.73 7. approve Warrant 2008 Regular 3DEC08 $372,148.69 8. Approve Warrant 2009 Regular 1JAN09 $247,221.10 Ayes - All Mayor’s Department Discussion and Vote: Basketball Sponsors & YMCA of Saratoga Pool Table Donation (09-01) Mayor Johnson moved and Commissioner Ivins seconded to accept a sponsorship by 26 different organizations and to accept a donation of a pool table and supplies from the Saratoga YMCA in the value of $2500. Discussion and Vote: Acceptance of Award and Authorization for Mayor to Sign Urban and Community Forestry Grant Contract (09-02) Mayor Johnson moved and Commissioner Ivins seconded to accept the award by New York State and for the Mayor to enter into contract with the State of New York in connection with the Urban and Community Forestry Grant. Mayor Johnson explained this is a grant the Council previously authorized the City to apply for earlier in the year. They have received indication they will be receiving the grant up to $20,000 for the inventory of trees and the general urban forestry condition of Saratoga Springs. There is a matching component on part of the City as follows: $10,000 in cash equivalent as well as $10,000 of in kind services. This is notification that we received the grant and to accept the grant status from New York State as well as authorization for the Mayor to sign the contract that allows us to accept the grant. Ayes – All Appointment: Zoning Board of Appeals Mayor Johnson announced the appointment of William Moore to the Zoning Board of Appeals. Mr. Moore is a life-long City resident and the owner of an appraisal company since 1985 with an office on Broadway. He is married and has served on other community boards including the Red Cross, the YMCA for 11 years, on the Board of Trustees for the YMCA, and has served on the Assessment Grievance Board for the City from 1990 – 1998, the last three years of which he was chairman. Mayor Johnson welcomed Mr. Moore to the Zoning Board. Mayor Johnson also thanked the outgoing member, Pell Kennedy for her dedication and commitment to the City. Discussion and Vote: Appointment to Ethics Board Mayor Johnson pulled this item from his agenda. Accounts Department Discussion and Vote: Authorization for Mayor to Sign Contract with Fitzgerald, Morris, Baker, and Firth, LLC (09-03) Commissioner Franck moved and Commissioner Ivins seconded to authorize the Mayor to sign a contract with Fitzgerald, Morris, Baker, and Firth, LLC for Article 7s involving Silipigno and Saratoga Property Development and Article 78 involving Mark Glaser . Page 5 of 14 City Council Meeting 1/6/09 Commissioner Franck said that Council approval is requested for the Mayor to sign a contract with Fitzgerald, Morris, Baker & Firth, and LLC for legal services relating to Article 7 and Article 78 matters at a rate of $170 per hour as previously approved in executive session. Commissioner Kim stated when he went back to the minutes, we said we were approving this firm to do a specific Article 78. At least in one of them there was a limit; $4,000 or $5,000 dollars. Commissioner Franck stated it related to 2 cases, Brayo, Saratoga Development and Silipigno; because Article 7 was part of it, there is no limit on at least the Article 7. Commissioner Kim stated the way he is reading the contract, it is to retain the firm for Article 7s and Article 78s. He read from the minutes stating that for Mark Glaser it was up to a maximum of $5,000 and for Saratoga Property Development there was a rate of $170 per hour with no maximum, and the Article 78 for Silipigno was $170 per hour. He thought that was what they were approving and because he didn’t see those names, he wanted to be sure that is what they were approving. Mayor Johnson stated this contract states it is to retain the firm to do matters as assigned by the City Council under the direction of the Commissioner of Accounts. We would still have to approve sending something to the firm to defend the City. Commissioner Kim believed at the last City Council they agreed to approve a firm to do Article 78s under the direction of the Commissioner of Accounts. He just doesn’t think that happened in the last executive session, the minutes from the last executive session and the contract don’t jive. Commissioner Franck stated because under insurance we were having some coverage on Article 78s, and it is important to use the same firm for these 2 specific Article 7s because they are similar to each other. He said that third item on his agenda is to hire another firm for all other Article 7s that are pending or might occur. The Article 78s come out of the City Attorney’s budget and the Article 7s come out of his [Accounts] budget. Mayor Johnson suggested making a friendly amendment on tonight’s motion to be specific to these two matters. He is reading it as the matter has to be assigned by the City Council before the agreement kicks in, and is willing to allow an amendment. Commissioner Kim stated if the Towne Contract isn’t contemplating every time there is an Article 7, then the Commissioner of Accounts goes to the Council for approval. He doesn’t feel that is what the contract says. There is more definition needed. Commissioner Franck asked to move these contracts forward contingent upon Risk and Safety and City Attorney approval. Mayor Johnson added that it should be with the limitations of the 2 matters that are pending before the City. Commissioner Franck suggested taking this one item first and then go on to the next. Mayor Johnson asked if there is a time sensitive reason to pass this tonight. Commissioner Franck stated that the matter is time sensitive due to pending litigation; there is a quandary regarding time because we have to get the new attorney on board with the assessor and the school board. Commissioner Kim stated the subject of the agreement for Fitzgerald contract should be they are retained for Article 7 and 78s instead of vague legal matters. Just insert what they have been approved for. Commissioner Franck has no problem making that amendment to this motion. The amended motion is as follows: Page 6 of 14 City Council Meeting 1/6/09 Commissioner Franck moved and Commissioner Ivins seconded to authorize the Mayor to sign a contract with Fitzgerald, Morris, Baker, and Firth, LLC for Article 7s involving Silipigno and Saratoga Property Development and Article 78 involving Mark Glaser contingent upon Risk and Safety and city attorney approval and limited to the two specific cases . Ayes – All Discussion and Vote: Authorization for Mayor to Sign Contract with Towne, Bartowski & DeFio Kean, PC (09-04) Commissioner Franck moved and Commissioner Kim seconded to authorize the Mayor to sign a contract with Towne, Bartowksi, & DeFio Kean, PC for professional legal services relating to Article 7 matters at a rate of $135 per hour for litigation and $170 per hour for trial representation. Commissioner Kim asked if it was anticipated that each time we get an Article 78 Commissioner Franck will be coming back to the table. Commissioner Franck clarified that this agreement is for Article 7s NOT 78s, and no, he will not be coming back with each Article 7. Commissioner Ivins stated a change needed to be made where the first ‘Where as’ appears. That area states Commissioner Franck will be coming to the Council each time. Commissioner Kim stated in paragraph 1 it states as assigned by City Council. Mayor Johnson suggested making this agreement specific to the matters presently pending as Article 7 for the City. Commissioner Franck agreed to that and will change the wording for any future matters. Ayes – All Commissioner Franck thanked Judge Jeffrey Wait for his work the past 3 years on Article 7s and he wished Judge Wait the best in his new job. Discussion: Minutes Commissioner Franck said he wants to discuss minutes relating to the land use boards, specific things relating to the public officers’ law and our in-house constitution. Public Officers’ Law Article 7 Section 106 states the following: “Minutes shall be taken at all open meetings of a public body which shall consist of a record or summary of all motions, proposals, resolutions and any other matter formally voted upon and the vote thereon.” It also states that “Minutes of meetings of all public bodies shall be available to the public in accordance with the provisions of the freedom of information law within two weeks from the date of such meeting…..”. Saratoga Springs Code Section 7.1.1 Council minutes states, “The City Clerk shall record and keep minutes of the Council and all City entities”. Commissioner Franck said that we also spoke to Bob Freeman who stated, and this is a quote: “there is no law stating that meeting minutes must be approved or adopted but if it is the habit of the agency or board to approve/adopt minutes, they shall be posted no later than two weeks from the meeting date with a water mark or similar mark stating that they are draft or unadopted/unapproved minutes – thereby indicating that they may be subject to change. The law is set in stone that minutes of meetings other than executive sessions must be made available within two weeks of the date of the meeting.” Commissioner Franck continued by saying as the City Clerk he will be taking the following measures: Page 7 of 14 City Council Meeting 1/6/09 o Work with all the Land Use Boards in an educational manner to help them facilitate posting the draft minutes on the City’s Website within two weeks of the meeting date. o Work with all the Land Use Boards to help them catch up with the past due minutes on the City’s Website.  Zoning Board of Appeals Minutes 11-13-2008  Design Review Minutes 10-15-2008  Planning Board Minutes 7-30-2008 He said this is about open government; the city council meetings are on the web, people can watch this live. It is very important that all land use board meetings should be filmed and placed on the website server, even workshops. I’m also going to bring forward a motion to have all Land Use Boards’ meetings, including pre-meeting workshops taped and posted on the City’s Website. I believe it’s too expensive to show the meetings live, but I will confer with Commissioner Ivins’ office to get a quote on server costs, but either way transparent government dictates that these meetings shall be posted on the City Website. The pressure put on these Boards should be made public. Mayor Johnson stated he believed there is some record of land use meetings whether it be audio or video. Tony Izzo stated he has recorded every zoning board meeting since 5 or 6 years back. The Design Review Commission (DRC) and planning board do not use his video equipment and he is not usually present to tape. He believes they do have an audio track available. He stated he asked the question at a conference last year and was told by someone at NYCOM that the video is not the minutes. We cannot use the video as a substitute for the minutes we have to have. Commissioner Franck stated at minimum there should be a video of the land use board meetings. It is important for people to have a flavor of the projects that go through here. These should be uploaded to the web. Commissioner Ivins stated server space is not a problem. As far as cost for online streaming, we are being charged $99 per month for our 2 meetings only. He is not sure what cost savings we may realize from multiple meetings. If a copy of the DVD is given to Kevin, he can get those online. Mayor Johnson agrees the minutes should be done more timely. They will be working with Time Warner this month for our franchise agreement with them, and part of the agenda will be a live broadcast on a dedicated channel for all boards. Commissioner Franck stated he doesn’t believe all this can be changed overnight, the Time Warner agreement will most likely be a long drawn-out process but the minutes must be posted. He said that a professional service is desired for web casting but a DVD could work for now. It is important to do this now because Commissioner Ivins is currently re-doing the Website. Award of Bid: Sale of Used Vehicles to Grace Quality Used Cars and Key Motors (09-05) Commissioner Franck moved and Commissioner Scirocco seconded to award the bid for Sale of Used Vehicles to Grace Quality Used Cars and Key Motors. Upon the recommendation of the Department of Public Safety the award of the bid for Sale of Used Vehicles will go to Grace Quality Used Cars for Item #1-$1664.00, 2- $864.00, and 3- $1264.00 and to Key Motors for Item #4-$857.00. Aye – All Award of Bid: Tire Repair to Adirondack Tire (09-06) Commissioner Franck moved and Scirocco seconded to award the bid for Sale of Used Vehicles to Grace Quality Used Cars and Key Motors. Page 8 of 14 City Council Meeting 1/6/09 Upon the recommendation of the Department of Public Works, the award the bid for Tire Repair and Service goes to Adirondack Tire of Saratoga Springs for various prices. They were the lowest bidder. Aye – All Finance Department Discussion: Lease Purchase for High Rock Lots Commissioner Ivins stated during the workshop he questioned the legality of the City doing a lease. He contact our bond counsel, whose first response was no, it is not legal. Commissioner Ivins continued to explain to the bond counsel that a non profit organization would be formed from whom the City would lease. The bond counsel advised Commissioner Ivins to contact Charles Schachner, who is part of the Harris Beach firm in the Syracuse area, and has done a number of these for municipalities around New York. Commissioner Ivins sent the Council an e-mail providing a comprehensive comparison regarding the City bonding itself or going to a lease purchase with the pros and cons. Legally, due to Section 109B of New York Municipal Law, we as a municipality cannot enter into a lease purchase for things other than vehicles, maintenance equipment, copy machines, etc. We cannot do it for property. How municipalities get around it is by creating a non profit organization that they control; 2 Council members and an outside person sit on it. The main advantage of doing that is: o You can avoid the WICKS law; which we can already do. o You do not have to pay prevailing wage, but we want to pay prevailing wage o Another way to circumvent our bond limit. Commissioner Ivins is not real comfortable with doing that; we have a self imposed bond limit that is way below the state limit. He would hate to see a future Council raise our bond limit up to the state limit and then have this on top of it. The disadvantage of creating a non profit is: o Typically non profit organizations cannot bond monies at the same low rate a city can. In the long run you are looking at paying more money to the taxpayers by creating a non profit organization. There is no real benefit to creating a non profit as opposed to us just bonding it ourselves and moving forward. Commissioner Ivins stated President Elect Obama is looking at a stimulus package which includes giving money to municipalities for projects like this. He contacted Congresswoman Gillibrand’s office today to investigate that. He believes they should be looking at this for the police station, the recreation center, and for the east side emergency services. It shouldn’t stop us from moving forward as they want shovel ready projects, so we should move forward. If we can’t do something with that, we should look at a bond instead of a lease through a non profit, but it is the Council’s final decision. Commissioner Kim stated that his office sat down with Gillibrand’s office after the last meeting. They also sent letters to Schumer and Clinton’s office and had conversations with staff members in Albany. What they heard is the stimulus package is focused on the real infrastructure issues which are more DPW types of things. Complete streets thing is the type of thing they are looking at. There is no money for buildings. They also put together a CD for the offices that focused on this issue. Commissioner Kim asked if they can talk to the bidders now and ask what they would do if the City bonded things. Commissioner Franck stated Obama just came out the day of the last meeting with his plan, Commissioner Kim had talked with Gillibrand before that. Things may have changed. The problem with the bond route is we would have to change our limit; if we go that route, you will see permissive referendum on this. It is the wrong time to be increasing our bond limit, bonding is not what it once was. The other problem with the bond route is you are going to need 4 votes here. If we go the bond route, we are knocking the project back another year, and we finally got to a point where we have some type of consensus. Page 9 of 14 City Council Meeting 1/6/09 Mayor Johnson stated he would like to see the cost comparison of bonding to lease buy back. The lease option is being used throughout the country for reasons. There is a lot of flexibility with the lease option, the city would have majority control on those boards, and direct input and control over the whole process for the entire term of the agreement. Commissioner Ivins stated until you put it out there, there is no way to know what the bond rate is going to be. Paying a little more may be worth the time. We should proceed on the course of how we are going to pay for this. Commissioner Kim said that in terms of federal funding, the City should focus on the needs of the capital budget in the infrastructure area because there are a couple parts of the City where there are 6 inch pipes where there should be 12 inch pipes. He suggested that the Council should focus on this and go to the City’s Federal representatives and aggressively pursue funding that is being primed for infrastructure projects; they are more palatable to what they are looking to fund. He also reminded the Council and the public that the City has done this [RFP] process 3 times now, and if the Council rejects these proposals, no one will ever take this City seriously. HE urged the Council to think carefully especially since the entire Council was instrumental in putting the current RFP together – rejecting the current proposals would be devastating to the City. Commissioner Ivins stated he didn’t hear anyone say the word rejected. He has more questions to send out to the bidders; which he just submitted today. Commissioner Franck reminded everyone they need to get their questions in so Council can review them ahead of time. Once we pick a developer, at that point we can go forward and make changes. Until we get to that point we have to go with what we have in front of us. Commissioner Scirocco stated that two of the three proposals received provided a method by which to fund the project. He said that when the City Council issued the RFP, we said we wanted to keep it budget neutral. He said that the Council should keep in mind that they have to find a funding source but them and he doesn’t have a problem with looking into different ways of funding, but the Council should decide what to do and move forward with a plan to execute. Commissioner Scirocco said in case the stimulus package is emphasizing infrastructure, DPW along with Rich Straut of Barton and Loguidice some infrastructure projects. Commissioner Ivins stated he would like to see the answers to his questions before he decides on a proposal. Commissioner Franck said that it must be ensured that the bidding process is being followed. Questions for the bidders are to be submitted to the Accounts Office by the end of the week. Discussion: City Finances Commissioner Ivins stated sales tax is down significantly in October and November 2008, so we will not make budget on that. He reported that National Grid has sent the City a letter claiming we owe them for an overpayment of gross receipt tax dating back to 2005. The total is almost $250,000. They claim they erroneously included revenues from electric transmission and distribution and gas transportation service which do not originate within the geographic boarders of the City. At this point we are waiting for response on how they calculate their rates and what this is about. He said that his department has contacted the Public Service Commission and NYCOM and the City is not paying anything at this point but he wants to make everyone aware of it. Also, there was a clerical error in the 2009 budget that was distributed; a few things were left in that were supposed to have been taken out. He said there is no vote and no amendments required, they are simply correcting the computer to reflect what the City Council has already approved. A copy of the 2009 budget will be re-issued to all and the Comptroller’s Office. Discussion and Vote: Bond Resolution – Johnson Controls (09-07) Page 10 of 14 City Council Meeting 1/6/09 Commissioner Ivins moved and Mayor Johnson seconded for approval of a bond resolution for additional work by Johnson Controls. Commissioner Ivins stated this was originally approved as a lease and one bidder came back with a bond that is a ½% less than any of the other leases that came back. We are looking at a savings of about $34,000. He is proposing they approve this and get the bill paid. BOND RESOLUTION DATED JANUARY 6, 2009 A RESOLUTION AUTHORIZING THE ISSUANCE OF SERIAL BONDS OF THE CITY OF SARATOGA SPRINGS, SARATOGA COUNTY, NEW YORK IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $720,497 PURSUANT TO THE LOCAL FINANCE LAW TO FINANCE THE REPLACEMENT AND INSTALLATION OF ENERGY MANAGEMENT EQUIPMENT AND DELEGATING THE POWER TO ISSUE BOND ANTICIPATION NOTES IN ANTICIPATION OF THE SALE OF SUCH BONDS TO THE COMMISSIONER OF FINANCE. BE IT RESOLVED, by the City Council of the City of Saratoga Springs, Saratoga County, New York (the "City") (by the favorable vote of not less than two-thirds of all of the members of said City Council) as follows: SECTION 1. The specific purpose (hereinafter referred to as "purpose") to be financed pursuant to this resolution is the replacement and installation of energy management equipment, including chiller replacement at the Vernon and Weibel ice rinks, lighting retrofit and boiler replacement at the Franklin Community Center and engineering, measurement and verification City-wide, at an estimated maximum cost of $720,497. SECTION 2. The City Council plans to finance the total cost of said purpose by the issuance of serial bonds of the City in an amount not to exceed $720,497, hereby authorized to be issued therefore pursuant to the Local Finance Law. SECTION 3. It is hereby determined that, based upon a determination by Bollam, Sheedy, Torani & Co. LLP that the useful life of said purpose classified as a capital asset under generally accepted accounting principles for municipalities is at least fifteen (15) years, said purpose is an object or purpose described in subdivision 35 of paragraph a of Section 11.00 of the Local Finance Law, and the period of probable usefulness of said purpose is fifteen years (15) years. SECTION 4. The proceeds of the bonds authorized by this resolution, and any notes issued in anticipation thereof, may be applied to reimburse the City for expenditures made after the effective date of this resolution for the specific purpose set forth herein. This resolution shall constitute a statement of official intent for purposes of Treasury Regulation Section 1.150-2 of the United States Treasury Department. SECTION 5. Each of the bonds authorized by this resolution, and any notes issued in anticipation thereof, shall contain the recital of validity prescribed by Section 52.00 of the Local Finance Law. The faith and credit of the City are hereby irrevocably pledged for the payment of the principal of and interest on said bonds as the same respectively become due and payable. An annual appropriation shall be made in each year sufficient to pay the principal of and interest on said bonds becoming due and payable in such year. There shall annually be levied on all the taxable real property of the City a tax sufficient to pay the principal of and interest on said bonds as the same become due and payable. SECTION 6. Subject to the terms and contents of this resolution and the Local Finance Law, and pursuant to the provisions of Sections 21.00, 30.00, 50.00 and 56.00 to 63.00, inclusive, of said Law, the power to authorize bond anticipation notes in anticipation of the issuance of the serial bonds authorized by this resolution and the renewals of said notes, and the power to prescribe the terms, form and contents of said serial bonds and said bond anticipation notes (including, without limitation, dates, denominations, maturities, interest payment dates, consolidation with other issues, manner of execution and redemption rights), and the power to determine to issue said bonds providing for substantially level or declining debt service, and the power to sell and deliver said serial bonds and any bond anticipation notes issued in anticipation of the issuance of said bonds, are hereby delegated to the Commissioner of Finance, the chief fiscal officer of the City. The Commissioner of Finance is hereby authorized to sign any serial bonds issued pursuant to this resolution and any bond anticipation notes issued in anticipation of the issuance of said serial bonds, and the City Clerk is hereby authorized to affix the corporate seal of the City to any of said serial bonds or any bond anticipation notes and to attest such seal. SECTION 7. The Commissioner of Finance is further authorized to take such actions and execute such documents as may be necessary to ensure the continued status of the interest on the bonds authorized by this resolution, and any notes issued in anticipation thereof, as excludable from gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), and to designate the bonds authorized by this resolution, and any notes issued in anticipation thereof, as "qualified tax-exempt obligations" in accordance with Section 265(b)(3) of the Code. SECTION 8. The validity of said serial bonds or of any bond anticipation notes issued in anticipation of the sale of said serial bonds may be contested only if: (a) Such obligations are authorized for an object or purpose for which the City is not authorized to expend money, or (b) The provisions of law which should be complied with at the date of the publication of this resolution, or a summary thereof, are not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty (20) days after the date of such publication, or (c) Such obligations are authorized in violation of the provisions of the constitution. SECTION 9. The City Clerk is hereby authorized and directed to publish this resolution, or a summary thereof, together with a notice in substantially the form provided by Section 81.00 of the Local Finance Law, in The Saratogian and The Daily Gazette, two newspapers each having a general circulation in the City and hereby designated as the official newspapers of the City for such publication. SECTION 10. This resolution shall take effect immediately upon its adoption. Commissioner Kim asked if this has to be put in the capital program. Page 11 of 14 City Council Meeting 1/6/09 Commissioner Ivins stated by doing the public hearing, it gets put in the capital program. Commissioner Kim stated his concern is we are being sued on not following processes. Commissioner Ivins asked Commissioner Scirocco how much pressure he is getting from Johnson Controls for payment. Commissioner Scirocco stated he has not spoken with them on this at all. He has no problem with this resolution. Commissioner Ivins stated if we do not approve a capital budget amendment, we will have to find another funding source. We are legal in doing this, we are abiding by the Charter by having the public hearing. Commissioner Kim stated if Johnson Controls is not in a hurry, than he would rather wait and follow the Charter. Role Call: Commissioner Franck – Aye Commissioner Ivins – Aye Commissioner Scirocco – Aye Commissioner Kim – abstain Mayor Johnson – Aye Motion passes, 4-0-1 Discussion: Complete Streets Initiative Commissioner Ivins announced he was approach by people from the Saratoga Healthy Transportation Network. He is an avid biker himself and is interested in working with them to look at the City and find problem areas. There are areas that are unsafe and in need of improvement, and the key to the program is not only to get people out there to walk and bike but to make it safe for them to do so. As Finance Commissioner he is not looking to spend a ton of money on this but he is looking to find short and long term solutions to make our City more accessible. He said that the more people that bike and walk, the more parking issues are alleviated. There is a meeting next Tuesday and commissioner Ivins plans to attend. Set Public Hearing: 2009 Budget amendment – Johnson Controls Work Commissioner Ivins announced a public hearing has been set for January 20, 2009 at 6:55 p.m. Public Works Department Discussion and Vote: Approval – DPW Sick Bank Request (09-08) Commissioner Scirocco moved and Commissioner Ivins seconded the removal of 7 days from the DPW sick bank for an employee. Commissioner Scirocco advised this has been approved by CSEA. Ayes – All Informational: Commissioner Scirocco advised they had 4 trucks down; therefore he contacted Joe Ritchey at the Saratoga County DPW for assistance in hauling sand. Joe was able to provide 3 large dump trucks to haul 500 tons of sand to prepare for the upcoming weather. Commissioner Scirocco thanked the County for their assistance. Page 12 of 14 City Council Meeting 1/6/09 Public Safety Department Discussion: High Rock Proposals Commissioner Kim said that this item was previously discussed in tonight’s agenda. Supervisors Joanne Yepsen Announcement: County Meeting Supervisor Yepsen announced they had their organizational meeting for the County on January 2nd. They elected a new chair for their board, Art Johnson and they received their 2009 committee assignments. She will be serving on Legislative and Research, Equalization and Assessment, Racing, and Veterans. She has been assigned to serve on the Legislative and Research Committee for the New York State Association for Counties. Update: Women’s’ Shelter for Homeless Veterans Supervisor Yepsen stated they announced this project on Veteran’s Day and it has taken off. Their next steps are to present their business plan, do presentations for funding (need $300,000 to purchase or build a home), putting in a grant proposal for $200,000, a corporate ask has been made for $50,000, and they are going to talk to their legislative state leaders and they are looking to raise $25,000 on a grass roots level. She accepted their first $2,000 from the Halfmoon American Legion. Complete Streets Supervisor Yepsen announced that Sustainable Saratoga and the Mayor’s Office, through the Planning Department is sponsoring a Complete Streets. On January 27th, Lois, a federal representative from the Non-motorized Travel Panel, will be here to present more information. The 3 boards are going to meet with her in a workshop setting, then a Sustainable Saratoga meeting will be held later that afternoon with her as well. Matt Veitch Announcement: 2009 Committee Assignments Supervisor Veitch announced they elected Supervisor Art Johnson from Wilton as the chairman of the board. The chairman for the Law and Finance Committee is Bill Peck from the Town of Northumberland. Bill Peck will be doing the budgeting for 2010. Supervisor Veitch has been re-appointed to the Economic Development Committee, re-appointed to the Social Programs Committee, he will be joining Supervisor Yepsen on the Legislative Research Committee, he will chair the Trails Committee, he will also chair the Racing Committee, and he has been re-appointed to the Gaming and Raceway Foundation. ADJOURNMENT Mayor Johnson moved and Commissioner Ivins seconded to adjourn the meeting. Ayes - All. Page 13 of 14 City Council Meeting 1/6/09 There being no further business, Mayor Johnson adjourned the meeting at 10:15 pm. Respectfully submitted, Nancy Wagner Approved: 1/20/09 Vote: 5 – 0 Page 14 of 14