City Council

November 28, 2017 CITY OF SARATOGA SPRINGS City Council Meeting City Council Room 5:00 PM 5:00 PM P.H. – Proposed 2018 Comprehensive Budget 5:00 PM CALL TO ORDER ROLL CALL SALUTE TO FLAG PUBLIC COMMENT PERIOD / 15 MINUTES PRESENATIONS EXECUTIVE SESSION CONSENT AGENDA 1. Nothing at this time. MAYOR’S DEPARTMENT 1. Discussion and Vote: Resolution in Support of a Workforce Housing Incentive Package for the South Broadway Development ACCOUNTS DEPARTMENT 1. Nothing at this time. FINANCE DEPARTMENT 1. Discussion and Vote: Economic Development & Housing Incentives 2. Discussion and Vote: Proposed 2018 Amended Budget PUBLIC WORKS DEPARTMENT 1. Nothing at this time. PUBLIC SAFETY DEPARTMENT 1. Nothing at this time. SUPERVISORS 1. Nothing at this time. ADJOURN City Council Meeting 11/28/17 November 28, 2017 CITY OF SARATOGA SPRINGS City Council Meeting City Council Room 5:00 PM PRESENT: Joanne Yepsen, Mayor Michele Madigan, Commissioner of Finance John Franck, Commissioner of Accounts Anthony Scirocco, Commissioner of DPW Christian Mathiesen, Commissioner of DPS STAFF PRESENT: Meg Kelly, Deputy Mayor Mike Sharp, Deputy Commissioner, Finance Maire Masterson, Deputy Commissioner, Accounts Eileen Finneran, Deputy Commissioner, DPS Vincent DeLeonardis EXCUSED: Joe O’Neill, Deputy Commissioner, DPW Matthew Veitch, Supervisor Peter Martin, Supervisor 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. PUBLIC HEARING Proposed 2018 Comprehensive Budget Mayor Yepsen opened the public hearing at 5:03 p.m. Commissioner Madigan advised this is a continuation of the second public hearing of the proposed 2018 budget. This hearing will remain open until the Council votes on the budget later in this meeting. No one spoke. Mayor Yepsen concluded the public hearing at 5:04 p.m. and left it open. CALL TO ORDER Mayor Yepsen called the meeting to order at 5:04 p.m. Page 2 of 7 City Council Meeting 11/28/17 PUBLIC COMENT Mayor Yepsen said the public comment period is limited to a total of 15 minutes and individuals are limited to two minutes. Mayor Yepsen opened the public comment period at 5:05 p.m. No one spoke. Mayor Yepsen closed the public comment period at 5:05 p.m. MAYOR’S DEPARTMENT Discussion and Vote: Resolution in Support of a Workforce Housing Incentive Package for the South Broadway Development (17-374) Mayor Yepsen advised she asked Brad Birge and Vince DeLeonardis to put together a resolution that would reflect the discussion and presentation they had in the last City Council meetings. Vince DeLeonardis, city attorney, advised KCG presented a scope of project via a slideshow. He met with the assistant city assessor, KCG, Brad Birge, and SEDC in regards to the application they were making to the state. They needed to outline the City’s monetary involvement in this project. The PILOT agreement could not be brought forward tonight but they did put together a resolution that shows the City’s willingness to engage in a PILOT agreement and other incentives. The resolution indicates the City will consider a PILOT agreement subject to Council review and approval and the Council will agree to consider other incentives. The PILOT agreement is proposed as the first year will be the value of the land; years 2 – 30 will include a payment only relating to the residential space - $63,974 increasing incrementally up to year 30 to be in the amount of $259,582. Incentives the Council will have to consider include potential waivers of land use board application fees (approximately $16,700), waiver of permit and inspection fees (approximately $19,750), waiver of recreation fees (approximately $165,000), and certain funds such as CDBG (up to $105,000) and potential City Housing and Economic Development Grant funds (potentially $50,000). The total amount of the City’s incentives and PILOT would be $1,174,364 over the 30 years. Bill Teeter and SEDC have reviewed this resolution and are in agreement. Dennis Brobston of SEDC stated the resolution shows them to allow the support of the City on the application. Brad Birge advised the 2 block grant funds in the City are revolving loans. The overall objectives and goals are consistent. The resolution is as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA SPRINGS, NEW YORK Authorizing Exemption, Payment-in-Lieu of Taxes and other Incentives for KCG Development Saratoga Springs Affordable Housing Project WHEREAS, the City of Saratoga Springs (the "City") encourages a sufficient supply of adequate, safe and sanitary dwelling accommodations properly planned for residents having household incomes less than or equal to eighty percent (80%) of area median income ("AMI") for Saratoga County, adjusted for family size; and WHEREAS, KCG Development, (the “Company”) is the lessee under a contract to lease certain parcels of real property within the City of Saratoga Springs, New York designated on the last completed assessment rolls of the City as tax parcel nos. 178.27-1-22 through 29 (the “Land”), owned by Saratoga Diner, Inc. (Owner), and is proposing to construct a mixed use development project consisting of commercial, retail and residential space, including 110 units of affordable multi-family rental units and related improvements (the “Improvements”) on the Land (the Land and the Improvements collectively being the “Project”); and Page 3 of 7 City Council Meeting 11/28/17 WHEREAS, the Project will include one and two bedroom apartment units, 74 of which will be available for persons with an AMI of 60% or less, including 14 units specifically designated for Veterans; and the remaining 36 of which will be available for persons with an AMI of between 60% and 130% or less; and WHEREAS, the Company, in collaboration with Saratoga Economic Development Corporation (“SEDC”) has agreed that not less than 10,000 square feet of the commercial space within the Project would be leased to SEDC, at a significantly reduced rate, to operate an affordable business incubator work space to assist with the start-up, growth and acceleration of businesses within the City, and up to an additional 10,000 square feet may be incorporated under these incentives for below market rental use by valid non- profit arts based organziations; and WHEREAS, the Company and Owner are making an application to the New York State Division of Housing and Community Renewal (“DHCR”) and/or New York State Housing Finance Agency (“HFA”) for tax exempt bond financing and for an allocation of HFA subsidy and Federal Low Income Housing Tax Credits to finance the acquisition and construction of the Project; and WHEREAS, the Company and Owner are currently seeking to establish a housing development fund company ("HDFC") under New York Private Housing Finance Law ("PHFL") Article XI and Section 402 of the NYS Not-for-Profit Corporation Law, subject to consent of the Commissioner of DHCR; and WHEREAS, in order to facilitate the acquisition and construction of the Project and creation of affordability covenants for the Project, the Company and Owner are willing to transfer legal ownership of the Project to the HDFC as nominee, with the Company and Owner to remain as equitable and beneficial owners, and the Company and Owner will then construct the Project and commit it to affordable housing by agreeing to the New York State Homes and Community Renewal affordability covenants to be imposed by DHCR and/or HFA, as applicable, with assistance from the City in the form of an exemption, PILOT Agreement and other incentives; and WHEREAS, the Company and Owner’s plan for the use of the Project constitutes a "housing project" as that term is defined in the PHFL; and WHEREAS, the HDFC, once established, will be a "housing development fund company" as that term is defined in Section 572 of the PHFL, and Section 577 of the PHFL authorizes the City Council to exempt the Project from real property taxes, and to agree to a payment of lieu of taxes on the Project; and WHEREAS, the Company, Owner and the HDFC, once established, will be willing to enter into a PILOT Agreement, relative to such portion of the Project to be utilized for affordable housing, whereby annual payments in lieu of taxes to the City in a manner consistent with the following and subject to City Council approval: 30 Year PILOT – to include full taxable amount of commercial/retail space. Residential space shall include the following amounts: 1. $5,942 (land only) 16. $140,839 2. $63,974 17. $146,835 3. $85,882 18. $153,146 4. $88,877 19. $159,788 5. $92,043 20. $166,776 6. $95,387 21. $174,127 7. $98,919 22. $181,856 8. $102,649 23. $189,981 9. $106,584 24. $198,521 10. $110,737 25. $207,494 11. $115,118 26. $216,921 12. $119,737 27. $226,821 13. $124,606 28. $237,216 14. $129,738 29. $248,129 15. $135,144 30. $259,582 The total approximate value of the PILOT over the projected thirty (30) year period is $817,864. In addition, the City may offer other incentives relative to the affordable housing component of the Project, including waivers of land use board application fees (approximate amount of $16,750), building permit and inspection fees ($19,750), recreation fees ($165,000), as well as CDBG grant funds ($105,000) and potential City Housing and Economic Development grant funds ($50,000). The accumulated total value of the proposed PILOT and incentives equal approximately $1,174,364 over the projected thirty (30) year period. NOW THEREFORE, BE IT RESOLVED, that upon acquisition of title to the Land by the HDFC and subject to same, the City Council will consider an exemption of the Project from real property taxes to the extent authorized by Section 577 and any other applicable provisions of the PHFL, and negotiate a PILOT Agreement by and among the City of Saratoga Springs, the Company, Owner and the HDFC, providing for annual payments in substantially the form and manner as set forth herein, subject to Council review and approval; and BE IT FURTHER RESOLVED, that upon conditions to be established, including the designation of affordable housing in an amount and manner substantially similar to that set forth herein, as well as the designation of affordable business incubator work space, the City will consider additional incentives, including waivers of land use board application fees, building permit fees, recreation fees and grant funds as set forth herein, subject to Council review and approval. Mayor Yepsen moved and Commissioner Mathiesen seconded to approve the resolution in support of a workforce housing incentive package for the South Broadway Development Project as described. Page 4 of 7 City Council Meeting 11/28/17 Ayes - All ACCOUNTS DEPARTMENT Nothing at this time. FINANCE DEPARTMENT Discussion and Vote: Economic Development & Housing Incentives (17-375) Commissioner Madigan stated on September 5, 2017 the City Council unanimously approved a recommendation to use a portion of the City’s current unassigned fund balance to be used to replenish existing City reserves and to fund needed City initiatives. One of the initiatives was a City grant program funded at $150,000. The goal of the program was to spur economic development through project funding. th Since the September 5 meeting the Council has become aware of several large projects that would benefit from funding from the City such as the South Broadway Project (SOBRO) and the restoration of the Universal Preservation Hall, and the Stonequist Development Project. These projects will be applying for state aid or income tax credits. She is recommending reallocating the $150,000 to a new housing and economic development project funding assignment. She would like to split the money into 3 - $50,000 disbursements that shows the City’s willingness to partner on worthy projects. Commissioner Madigan moved and Commissioner Scirocco seconded to approve the aforementioned assignment recommendation according to the memo sent out November 27, 2017. They will move the $150,000 into the housing economic development assignment with $50,000 each going toward the South Broadway Project; the Universal Preservation Hall Project; and the Saratoga Springs Housing Authority’s Stonequist Project. Commissioner Scirocco stated these are all worthy projects for this funding. Mayor Yepsen stated she agrees and will vote in the affirmative. Ayes - All Discussion and Vote: Proposed 2018 Amended Budget (17-376) Commissioner Madigan advised the 2018 proposed general fund budget totals $46,136,623; an $8,000 increase from the 2018 comprehensive budget of $46,128,422. Over 80% of the operating budget is from mandated expenses such as wages, social security, health and liability insurance, and NYS retirement contributions. The other funds total decreased $582,000 from the 2018 comprehensive budget to the 2018 amended budget with changes to the water fund, sewer fund, and capital projects. Over 100 budget lines have been revised for the 2018 amended budget. Budgetary increases (increased expenses or decreased revenue) include the following: contracts being settled subsequent to the comprehensive budget; updated contract with Axon for body cameras and TriTech for County wide 911 system; decrease in the use of unassigned fund balance; increase in contingency; upgrades in various departments; recreation program expenses being added back in; decrease in revenue associated with mortgage taxes; DPW expenses relating to road and highway maintenance; 3 months of salary and benefits for a replacement hire to overlap with the City’s payroll administrator; increase in IT related contracts; and Saratoga Center for the Family was added back to the Mayor’s budget. Budgetary decreases (decreased expenses or increased revenues) include the following: transfers to other funds; update revenue and expense projections provided by various departments; DPS revenue was increased; health care related changes; and the SPA Solar Park utility adjustment. Page 5 of 7 City Council Meeting 11/28/17 Items not included in the amended budget are new hires – traffic control in DPS and DPW garage dispatcher. The Finance Department has increased contingency by $50,000 bringing the 2018 total to $350,000. The tax rate remains stable with an average increase of 0.01% - the proposed combined inside district rate is $6.0553 (a 0.01% decrease) from 2017 and the proposed combined outside district tax rate is $5.9844 (a 0.04% increase) from 2017. The Capital Budget and Program in the 2018 amended budget largely mirrors the 2018 comprehensive budget. DPW also decided to fund projects that were on the 2018 capital budget using excess fund balance from water and sewer. The 2018 amended budget uses approximately $2.4 million of fund balance while the City will maintain a healthy yet smaller fund balance. Commissioner Madigan thanked the Council and her deputy Mike Sharp for all their work and cooperation on this budget. Commissioner Madigan moved and Commissioner Franck seconded the approval of the proposed 2018 amended budget presented this evening; all funds as our 2017/2018 adopted budget. Commissioner Mathiesen stated they are disappointed that the people they hoped to hire are not included but hope that will be rectified in the future. He continued to suggest the Council consider a slight increase in the tax rate in the future. It costs more money to run the City each year. He does appreciate all the work everyone put into this budget. Commissioner Madigan stated she doesn’t necessarily disagree with the point on taxes. She struggles with the budget each year. She left the contingency a little higher than she would normally as there are unknowns out there such as the form of government. Ayes - All Commissioner Madigan moved and Commissioner Scirocco seconded to add an item to the agenda for the mayor to sign a contract with Vertive contract – server room. (17-377) Ayes – All Discussion and Vote: Authorization for the Mayor to Sign a Contract with Vertive Contract Server Room (17-378) Commissioner Madigan advised this is for maintenance and repair for critical cooling and power equipment st that runs the City server room. The previous contract expired November 21 . The cost is $8,084.80. Commissioner Madigan moved and Commissioner Scirocco seconded to approve the Vertive contract and authorize the mayor to sign. Ayes - All PUBLIC WORKS DEPARTMENT Nothing at this time. PUBLIC SAFETY DEPARTMENT Nothing at this time. Page 6 of 7 City Council Meeting 11/28/17 SUPERVISORS Nothing at this time. ADJOURNMENT There being no further business, Mayor Yepsen adjourned the meeting at 5:45 p.m. Respectfully submitted, Lisa Ribis Clerk Approved: 12/5/17 Vote: 5 - 0 Page 7 of 7