City Council

November 2, 2022 CITY OF SARATOGA SPRINGS Budget Workshop City Hall 474 Broadway 5:30 PM 5:30 PM CALL TO ORDER ROLL CALL SALUTE TO FLAG MAYOR’S DEPARTMENT 1. Mayor’s Presentation with Bankruptcy Counsel ACCOUNTS DEPARTMENT FINANCE DEPARTMENT PUBLIC WORKS DEPARTMENT 1. DPW Work and Timeline PUBLIC SAFETY DEPARTMENT PUBLIC COMMENT ADJOURN Beaver Pond Workshop 11/2/22 November 2, 2022 CITY OF SARATOGA SPRINGS Budget Workshop City Hall 5:30 PM PRESENT: Ron Kim, Mayor Minita Sanghvi, Commissioner of Finance Dillon Moran, Commissioner of Accounts Jason Golub, Commissioner of Department of Public Works James Montagnino, Commissioner of Department of Public Safety STAFF PRESENT: Angela Rella, Deputy Mayor Heather Crocker, Deputy Commissioner, Finance Stacy Connors, Deputy Commissioner, Accounts Joe O’Neill, Deputy Commissioner, Department of Public Works EXCUSED: Jason Tetu, Deputy Commissioner, Department of Public Safety CALL TO ORDER Mayor Kim called the meeting to order at 5:33 p.m. Mayor Kim advised the City will present what has been done to this point and then go to public comment. Erica Aisner of Kirby, Aisner and Curley attended this workshop. She stated this issue pending in the downstate in the southern district court. Mayor Kim advised a meeting was held with the developer to provide a list of what he needs to do to complete the job. A resolution was passed by the City Council at last night’s meeting (attached) to call letters of credit at the City’s discretion. The areas of most concern include paving the road(s) and installing lights. Erica has been hired to look at what further needs to be done, as the developer needs to be pushed. He recommended the residents of Beaver Pond retain bankruptcy counsel for their protection. Mayor Kim advised a significant amount of money is being held in a trust. There are things the letter of credit and the City of Saratoga Springs wont’ cover. The City will file an opposition to motion. Erica Aisner advised the City will make a motion to the court for permission to sell home stating urgency. This is usually a 21-day motion and may have date next week. Then issues and questions can be raised. Chris of the Beaver Pond Homeowners Association (HOA) stated two letters were written to the court and he spoke to the court clerk. He was told the City should hire an attorney. Erica Aisner stated the letters written by parties will be read by the judge. The HOA does not have a standing to the letters of credit. Page 2 of 5 Beaver Pond Workshop 11/2/22 Mayor Kim stated the City wants to do the work the City would normally do but cannot do other things promised by the developer. The City’s case would complement the HOA and residents. If the City and the residents contact the court, the judge will hear them. The list of items to be addressed by the developer sent in June 2022 included:  Surround open excavation with orange safety fence  Streetlights (City will do)  Sidewalks  Complete curbs  Top coat  Street trees The City believes it is a worthwhile effort to go to the court. Erica Aisner stated there is no obligation of the house being sold to Mr. Guffrey. The motion is missing a budget. The developer borrowed $1.2 million to finish construction but didn’t. If the developer does not have enough money to do the things they are obligated to do, asking questions through the court puts pressure on them. Mayor Kim stated the City has authority to negotiate letters of credit. The City is committed to plowing the streets. The right thing to do is for the judge to tell the developer what he is to do. Erica Aisner stated a motion can be made to compel the developer to do/complete his obligations. A demand can’t be done on behalf of the residents. Resident of Beaver Pond asked who at the Department of State approved all of this. Erica Aisner stated the Attorney General’s Office approves offerings for development like this. Resident of Beaver Pond stated the City required a site plan. Not all things are on the shoulders of the residents. Mayor Kim stated that is enforcement, which is another process. It is quicker to go through the bankruptcy court. The City would like to get a list from the neighbors of what the developer owes each of them. That list will be put in the motion. Terri of Beaver Pond stated letters have been written and phone calls have been made. She has a list of each phase of work that was done with engineer. This list was attached to the City Council’s agenda for last night. Mayor Kim stated other needs from residents that aren’t on those lists should be accumulated. Erica Aisner confirmed there are more items in need of attention that are not included in the list. Resident advised no; the list is all encompassing. Commissioner Golub stated the Department of Public Works wants to be here as a partner. Everything they can do will be done to help complete items. He first needs to understand the cost of getting things done in today’s dollars as the department will be constrained by a budget. Commissioner Golub stated plowing, salting, and sanding will be done regardless of the letter of credit. In the spring of 2023, they will prioritize paving and lighting. Paving costs may not impact the letter of credit, as there are other funding sources that they may be able to use. Craig of 51 Jane Street asked if the money that is not spent be spent on things the City normally doesn’t do. Commissioner Golub agreed to that. Page 3 of 5 Beaver Pond Workshop 11/2/22 Erica Aisner stated the letter of credit is specific to the phases and secured for the items listed. Money can only be drawn down on those items. Rich of Beaver Pond stated the builder took out insurance. He asked if the insurance payment is due. Erica Aisner stated the letter of credit is tied to the guarantees. Terri of Beaver Pond asked for confirmation of when the next letter of credit comes due. She knows two come due in April 2023 and two come due in June 2023. Mayor Kim stated he was a member of the Planning Board and had never seen this situation; the community has been lucky this hasn’t happened before. He is horrified this has been going on for six years. Resident of Beaver Pond stated it is easy to point the finger at the prior administration; it happens in politics all the time. He is focusing on future to be sure this doesn’t happen again. Mayor Kim stated it would have helped to have hired a bankruptcy attorney earlier on in this situation. Commissioner Sanghvi stated they should learn from this and move forward. Commissioner Golub asked to have the items prioritized by where there are residents versus where there are no residents. Resident at 34 Jane Street asked if there is documentation of what is the responsibility of the City versus the developer. Mayor Kim stated when the City files the motion, a copy will be sent to the residents. Erica Aisner stated the paper will ask for more disclosure and items tied to each line of credit particular to each phase. Terri of Beaver Pond asked if it is better to have the City engineers go around the development to determine what needs to be done. Commissioner Golub stated he will have a City engineer take the list, assess if accurate, and then determine what it would cost in today’s dollars to complete. Cindy Flannigan of Beaver Pond stated she appreciates the promise to do what they can but what happens if this Council is not re-elected. Amy of 33 Jane Street stated her biggest concern is safety. She also asked if there are any plans for the empty lots. Mayor Kim stated the City needs to let the judge know what’s not happening and to get money to the creditors if the development is no longer owned by this developer and sold to someone. There are 24 buildable lots that are sitting there and some are being vandalized. Commissioner Montagnino stated in regard to the empty lots being vandalized, he can ask for increased patrol in that area. Mayor Kim stated the City is filing a motion. Commitments have been made by the City to plow and go back in the spring to continue work. Commissioner Golub stated he will let the HOA know when the engineers are going into the neighborhood. Page 4 of 5 Beaver Pond Workshop 11/2/22 ADJOURNMENT Mayor Kim moved and Commissioner Sanghvi seconded to adjourn the meeting at 6:56 p.m. Ayes – All (Commissioner Moran, Commissioner Sanghvi, Commissioner Golub, Commissioner Montagnino, and Mayor Kim) Nays – 0 Respectfully submitted, Lisa Ribis Secretary to the City Council Approved: 3/21/2023 Vote: 4 - 0 Page 5 of 5