City Council

OFFICE OF THE CITY CLERK SCHENECTADY, NEW YORK AGENDA FOR THE COUNCIL CAUCUS AND THE CITY COUNCIL MEETING March 12, 2012 Room 209 7:00 P.M. PUBLIC HEARING In Relation to an Ordinance Proposing Changes to Chapter 48 of the Code of the City of Schenectady as it Relates to the City’s Code of Ethics In Relation to an Ordinance for A Proposed Bond Ordinance Authorizing the Issuance of $2,815,000.00 Aggregate Principal Amount Serial Bonds of the City of Schenectady to Finance the Reconstruction of Stormwater and Wastewater Infrastructure.  -2- 1. By Councilmember ORIGINAL CONSIDERATION An Ordinance amending the Land Bank Chapter 72 of the Code of the City of Schenectady. With A RESOLUTION calling for a Public Hearing on Monday, March 26, 2012, at 7:00 p.m. at Council Chambers, Room 209, Schenectady City Hall. 4 Votes 2. By Councilmember A RESOLUTION Authorizing the City of Schenectady to Enter into a Contract with GovQA, a WebQA Company, for Use of its FOIL Management System Program. 4 Votes 3. By Councilmember A RESOLUTION Authorizing Bomber’s Burrito Bar to Serve Alcoholic Beverages at a Public Event on May 5, 2012. 4 Votes 4. By Councilmember A RESOLUTION Authorizing the City Engineer to Issue Revocable Permit No. 567 to Key Bank for a Handicap Accessible Ramp Encroaching on the City Right-of- Way at 502 -504 Westinghouse Place. 4 Votes  -3- 5. By Councilmember A RESOLUTION Authorizing the Settlement of a Tax Certiorari Concerning 1875 State Street. 4 Votes 6. By Councilmember A RESOLUTION Authorizing the Settlement of a Tax Certiorari Concerning 115 Broadway. 4 Votes 7. By Councilmember A RESOLUTION Authorizing the City of Schenectady to Enter into a Settlement Agreement with Optimum Realty Corporation D/B/A Optimum Realty New York, to Extinguish Real Property Tax Liens Against 832 Grant Avenue in the City of Schenectady. 4 Votes 8. By Councilmember A RESOLUTION Authorizing the City of Schenectady to Settle a Claim by Michelle A. Proctor against the City. 4 Votes 9. By Councilmember A RESOLUTION Recognizing March 2012 as American Red Cross Month in the City of Schenectady. 4 Votes  -4- 10. By Councilmember A RESOLUTION Recognizing Achievements and Contributions of Irish Americans on St. Patrick’s Day. 4 Votes  CITY COUNCIL SCHENECTADY, NEW YORK LOCAL LAW N0. _____________________ Council member _________________ offered the following: A Local Law Amending Chapter 48 of the Code of the City of Schenectady in its Entirety. BE IT ENACTED by the Council of the City of Schenectady, in regular meeting convened, that Chapter 48 of the Code of the City which outlines the standards of ethical conduct, be amended in its entirety to read and provide as follows: CHAPTER 48 A. CODE OF ETHICS WHEREAS, Article 18 of the General Municipal Law, prohibits the officers and employees of a municipality from having certain conflicts of interest; and WHEREAS, Section 806 of the General Municipal Law requires the governing body of each county, city (other than the City of New York), town, village, school district and fire district to adopt a code of ethics that sets forth for the guidance of its officers and employees standards of conduct reasonably expected of them; and WHEREAS, a code of ethics adopted by the governing body of a municipality must set forth standards of conduct for the guidance of the officers and employees of the municipality with respect to disclosure of interests in legislation before the local governing body, holding of investments in conflict with official duties, private employment in conflict with official duties, future employment, and such other standards as may be deemed advisable; WHEREAS, Section 811 of the General Municipal Law grants the governing body of a municipality the rights and powers necessary to enforce the financial disclosure duty which is imposed on municipal officers/employees and local elected officials; 1 NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Schenectady hereby adopts a code of ethics to read as follows: § 48 -1. Purpose. Officers and employees of the City of Schenectady hold their positions to serve and benefit the public, and not for obtaining unwarranted personal or private gain in the exercise and performance of their official powers and duties. The City Council recognizes that, in furtherance of this fundamental principle, there is a need for clear and reasonable standards of ethical conduct. This code of ethics establishes those standards. This code of ethics also regulates the completion and filing of annual statements of financial disclosure by municipal officers, employees and elected officials. § 48 - 2. Definitions. (a) “Board” means the governing board of a municipality and any municipal administrative board (e.g. planning board), commission, or other agency or body comprised of two or more municipal officers or employees. (b) “Code” means this code of ethics. (c) “Interest” means a direct or indirect financial or material benefit, but does not include any benefit arising from the provision or receipt of any services generally available to the residents or taxpayers of the municipality or an area of the municipality, or a lawful class of such residents or taxpayers. A municipal officer or employee is deemed to have an interest in any private organization when he or she, his or her spouse, or a member of his or her household, is an owner, partner, member, director, officer, employee, or directly or indirectly owns or controls more than 5% of the organization’s outstanding stock. (d) “Municipality” means City of Schenectady. The word “municipal” refers to the municipality. (e) “Municipal officer or employee” means a paid or unpaid officer or employee of the City of Schenectady, including, but not limited to, the members of any municipal board. (f) “Relative” means a spouse, parent, step-parent, sibling, step-sibling, sibling’s spouse, child, step-child, uncle, aunt, nephew, niece, first cousin, or household member of a municipal officer or employee, and individuals having any of these relationships to the spouse of the officer or employee. § 48 - 3. Applicability. This code of ethics applies to the officers and employees of the City of Schenectady, and shall supersede any prior municipal code of ethics. The provisions of this code of ethics shall apply in addition to all applicable State and local laws relating to conflicts of interest and ethics including, but not limited to, Article 18 of the General Municipal Law and all rules, regulations, policies and procedures of the City of Schenectady. 2 § 48 - 4. Prohibition on use of municipal position for personal or private gain. No municipal officer or employee shall use his or her municipal position or official powers and duties to secure a financial or material benefit for himself or herself, a relative, or any private organization in which he or she is deemed to have an interest. § 48 - 5. Disclosure of interest in legislation, contracts and other matters. (a) Any municipal officer or employee (or spouse of such municipal officer or employee) who has, will have, or later acquires an interest in any actual or proposed contract, purchase agreement, lease agreement or other agreement, including oral agreements, with the municipality of which he/she is an officer or employee shall disclose in writing the nature and extent of such interest. (b) Whenever a matter requiring the exercise of discretion comes before a municipal officer or employee, either individually or as a member of a board, and the disposition of the matter could result in a direct or indirect financial or material benefit to himself or herself, a relative, or any private organization in which he or she is deemed to have an interest, the municipal officer or employee shall disclose in writing the nature of the interest. (c) The disclosure shall be made when the matter requiring disclosure first comes before the municipal officer or employee, or when the municipal officer or employee first acquires knowledge of the interest requiring disclosure, whichever is earlier. (d) In the case of a person serving in an elective office, the disclosure shall be filed with the City Clerk, who shall be the Clerk of the Ethics Board. In all other cases, the disclosure shall be filed with the person’s supervisor or, if the person does not have a supervisor, the disclosure shall be filed with the municipal officer, employee or board having the power to appoint to the person’s position. In the case of a person serving on a municipal board, a copy of the disclosure shall be filed with the board. Any disclosure made to a board shall be made publicly at a meeting of the board and must be included in the minutes of the meeting. § 48 - 6. Recusal and abstention. (a) No municipal officer or employee may participate in any decision or take any official action with respect to any matter requiring the exercise of discretion, including discussing the matter and voting on it, when he or she knows or has reason to know that the action could confer a direct or indirect financial or material benefit on himself or herself, a relative, or any private organization in which he or she is deemed to have an interest. (b) In the event that this section prohibits a municipal officer or employee from exercising or performing a power or duty: (1) if the power or duty is vested in a municipal officer as a member of a board, then the power or duty shall be exercised or performed by the other members of the board; or (2) if the power or duty is vested in a municipal officer individually, then the power or duty shall be exercised or performed by his or her deputy or, if the officer does 3 not have a deputy, the power or duty shall be performed by another person to whom the officer may lawfully delegate the function. (3) if the power or duty is vested in a municipal employee, he or she must refer the matter to his or her immediate supervisor, and the immediate supervisor shall designate another person to exercise or perform the power or duty. § 48 - 7. Disclosure, recusal and abstention not required. (a) This code’s disclosure, recusal and abstention requirements, shall not apply with respect to the following matters: (1) adoption of the municipality’s annual budget; (2) any matter requiring the exercise of discretion that directly affects (i) all municipal officers or employees, (ii) all residents or taxpayers of the municipality or an area of the municipality; or (iii) the general public; (b) Recusal and abstention shall not be required with respect to any matter: (1) which comes before a board when a majority of the board’s total membership would otherwise be prohibited from acting; (2) which comes before a municipal officer when the officer would be prohibited from acting, and the matter cannot be lawfully delegated to another person. § 48 - 8. Investments in conflict with official duties. (a) No municipal officer or employee may acquire the following investments: (1) investments that can be reasonably expected to require more than sporadic recusal and abstention; or (2) investments that would otherwise impair the person’s independence of judgment in the exercise or performance of his or her official powers and duties. (b) This section does not prohibit a municipal officer or employee from acquiring any other investments or the following assets: (1) real property located within the municipality and used as his or her personal residence; (2) less than five percent of the stock of a publicly traded corporation; or (3) bonds or notes issued by the municipality and acquired more than one year after the date on which the bonds or notes were originally issued. § 48 - 9. Private employment in conflict with official duties. No municipal officer or employee, during his or her tenure as a municipal officer or employee, may engage in any private employment, including the rendition of any business, commercial, professional or other types of services, when the employment: (a) can be reasonably expected to require more than sporadic recusal and abstention; (b) can be reasonably expected to require disclosure or use of confidential information gained by reason of serving as a municipal officer or employee; (c) would require representation of a person or organization other than the municipality in connection with litigation, negotiations or any other matter to which the municipality is a party; 4  (d) would result in any other violation of Article 18 of the General Municipal Law not herein enumerated. § 48 - 10. Future employment. (a) No municipal officer or employee may ask for, pursue or accept a private post- government employment opportunity with any person or organization that has a matter requiring the exercise of discretion pending before the municipal officer or employee, either individually or as a member of a board, while the matter is pending or within the 30 days following final disposition of the matter. (b) No municipal officer or employee, for the two-year period after serving as a municipal officer or employee, may represent or render services to a private person or organization in connection with any matter involving the exercise of discretion before the municipal office, board, department or comparable organizational unit for which he or she serves. (c) No municipal officer or employee, at any time after serving as a municipal officer or employee, may represent or render services to a private person or organization in connection with any particular transaction in which he or she personally and substantially participated while serving as a municipal officer or employee. § 48 - 11. Personal representations and claims permitted. This code shall not be construed as prohibiting a municipal officer or employee from: (a) representing himself or herself, or his or her spouse or minor children before the municipality; or (b) asserting a claim against the municipality on his or her own behalf, or on behalf of his or her spouse or minor children and dependents. § 48 - 12. Use of municipal resources (a) Municipal resources shall be used for lawful municipal purposes. Municipal resources include, but are not limited to, municipal personnel, and the municipality’s money, vehicles, equipment, materials, supplies or other property. (b) No municipal officer or employee may use or permit the use of municipal resources for personal or private purposes. This provision shall not be construed as prohibiting: (1) any use of municipal resources authorized by law or municipal policy; (2) the use of municipal resources for personal or private purposes when provided to a municipal officer or employee as part of his or her compensation; or (3) the occasional and incidental use during the business day of municipal telephones and computers for necessary personal matters such as family care and changes in work schedule. (c) No municipal officer or employee shall cause the municipality to spend more than is reasonably necessary for transportation, meals or lodging in connection with official travel. 5 § 48 - 13. Interests in Contracts. No municipal officer or employee may have an interest in a contract that is prohibited by Section 801 of the General Municipal Law. § 48 - 14. Nepotism. Except as otherwise required by law: (a) No municipal officer or employee, either individually or as a member of a board, may participate in any decision specifically to appoint, hire, promote, discipline or discharge a relative for any position at, for or within the municipality or a municipal board. (b) No municipal officer or employee may supervise a relative in the performance of the relative’s official powers or duties. § 48 - 15. Political Solicitations. (a) No municipal officer or employee shall directly or indirectly compel or induce a subordinate municipal officer or employee to make, or promise to make, any political contribution, whether by gift of money, service or other thing of value. (b) No municipal officer or employee may act or decline to act in relation to appointing, hiring or promoting, discharging, disciplining, or in any manner changing the official rank, status or compensation of any municipal officer or employee, or an applicant for a position as a municipal officer or employee, on the basis of the giving or withholding or neglecting to make any contribution of money or service or any other valuable thing for any political purpose. § 48 - 16. Confidential Information. No municipal officer or employee who acquires confidential information in the course of exercising or performing his or her official powers or duties may disclose or use such information unless the disclosure or use is required by law or in the course of exercising or performing his or her official powers and duties. § 48 - 17. Gifts. (A) No municipal officer or employee shall directly or indirectly solicit, accept or receive a gift in violation of section 805-a(1)(a) of the General Municipal Law. No municipal officer or employee may accept or receive any gift, or multiple gifts from the same donor, having an annual aggregate value of seventy-five dollars or more when: (1) the gift reasonably appears to be intended to influence the officer or employee in the exercise or performance of his or her official powers or duties; (2) the gift could reasonably be expected to influence the officer or employee in the exercise or performance of his or her official powers or duties; or (3) the gift is intended as a reward for any official action on the part of the officer or employee. (B) For purposes of this section, a “gift” includes anything of value, whether in the form of money, service, loan, travel, entertainment, hospitality, thing or promise, or in any other form. The value of a gift is the gift’s fair market value, determined by the retail cost of the item or a comparable item. The fair market value of a ticket entitling the 6 holder to food, refreshments, entertainment, or any other benefit is the face value of the ticket, or the actual cost to the donor, whichever is greater. Determination of whether multiple gifts from a single donor exceed seventy-five dollars must be made by adding together the value of all gifts received from the donor by an officer or employee during the twelve-month period preceding the receipt of the most recent gift. (C) A gift to a municipal officer or employee is presumed to be intended to influence the exercise or performance of his or her official powers or duties when the gift is from a private person or organization that seeks municipal action involving the exercise of discretion by or with the participation of the officer or employee. (D) A gift to a municipal officer or employee is presumed to be intended as a reward for official action when the gift is from a private person or organization that has obtained municipal action involving the exercise of discretion by or with the participation of the officer or employee during the preceding twelve months. (E) This section does not prohibit any other gift, including: (1) gifts made to the municipality; (2) gifts from a person with a family or personal relationship with the officer or employee when the circumstances make it clear that the personal relationship, rather than the recipient's status as a municipal officer or employee, is the primary motivating factor for the gift; (3) gifts given on special occasions, such as marriage, illness, or retirement, which are modest, reasonable and customary; (4) unsolicited advertising or promotional material of little intrinsic value, such as pens, pencils, note pads, and calendars; (5) awards and plaques having a value of seventy-five dollars or less which are publicly presented in recognition of service as a municipal officer or employee, or other service to the community; or (6) meals and refreshments provided when a municipal officer or employee is a speaker or participant at a job-related professional or educational conference or program and the meals and refreshments are made available to all participants. § 48 - 18. Board of Ethics. (A) There is hereby established a board of ethics for the City of Schenectady. The Board shall be composed of five (5) members. a. Members shall be appointed by the Mayor, subject to confirmation by the City Council. If the Mayor shall fail to appoint the members within 30 days after the establishment of the Board of Ethics or within 30 days after a vacancy occurs on the Board of Ethics, the City Council shall appoint such member or members, as the case may be. b. The members of the Board of Ethics shall serve five-year staggered terms of office, one such term expiring each year. In the event that a vacancy occurs prior to the expiration of the five-year term, such vacancy shall be filled for the balance of such term in the same manner as members are appointed to full terms. 7  c. At least one member of the Board shall be an officer or employee of the City of Schenectady, but a majority of the Board may not consist of officers or employees of the City. d. All members shall reside within the City of Schenectady. e. No member shall be compensated for his/her Board-related activities. f. The members shall elect a Chairperson from among themselves and such other officers as may be deemed necessary from time to time. (B) A Board of Ethics member may be removed by the Mayor with the approving consent of not less than five members of the City Council after a finding of substantial neglect of duty, gross misconduct in office, inability to discharge the powers or duties of the office or violation of this chapter after written notice of the charges and an opportunity for reply. (C) The City Clerk shall be the Clerk of the Board of Ethics, and all documents filed with the City Clerk shall be deemed, for the purposes of this chapter, to be filings with the Board of Ethics. (D) The Board of Ethics shall have all the powers and duties as prescribed by Article 18 of the General Municipal Law. The Board of Ethics may adopt and amend such rules or procedures as are appropriate. (E) The board of ethics shall render advisory opinions to the officers and employees of the City of Schenectady with respect to Article 18 of the General Municipal Law and this code. Such advisory opinions must be rendered pursuant to the written request of any such officer or employee under such rules and regulations as the board of ethics may prescribe. The board of ethics shall have the advice of legal counsel employed by the board, or if none, the municipality’s legal counsel. In addition, the board of ethics may make recommendations with respect to the drafting and adoption of a code of ethics, or amendments thereto, upon the request of the City Council. (F) The Board of Ethics shall adopt rules governing the conduct of adjudicatory proceedings and appeals relating to the assessment of the civil penalties authorized by law. Assessment of a civil penalty shall be final unless modified, suspended or vacated within thirty days of imposition and upon becoming final shall be subject to review at the instance of the affected reporting individual in a proceeding commenced against the appropriate body pursuant to article seventy-eight of the civil practice law and rules. § 48 - 19. Disclosure of Financial Status. Pursuant to Article 18 of the New York State General Municipal Law, the City of Schenectady hereby adopts the following financial disclosure policy: (1) The Mayor of the City of Schenectady shall file with the City Clerk, on or before January 1 of each year, a list of the names or the office, title or job classification of those officers and employees who shall be required to file the annual financial disclosure statement. 8 (2) Time of filing. All financial statements shall be filed on or before April 30 of every year following enactment of this subsection during the term of the city official's office. The time for filing such statement may be extended pursuant to the Board of Ethics, for justifiable cause and for undue hardship upon application to the Board of Ethics pursuant to the rules and regulation set forth in the law. (3) Place and manner of filing. Financial disclosure statements are to be completed and filed with the Schenectady City Clerk. Said statements shall be confidential and shall be made accessible to the general public and to other members of the city officers and employees and City Council, by formal Freedom of Information Law request through the City Clerk's office. (4) The Board of Ethics shall have all necessary authority to enforce the filing requirements of this chapter, including the authority to promulgate such rules and regulations as the Board of Ethics determines are necessary to implement this chapter. The board of Ethics shall be authorized to review requests for exceptions with respect to complying with timely filing of such disclosure statements due to justifiable cause or undue hardship. The Board of Ethics shall inspect all financial disclosure statements filed with the Board of Ethics to ascertain whether any person subject to the reporting requirements of this chapter, a Code of Ethics, local law, ordinance or resolution has failed to file such a statement, has filed a deficient statement or has filed a statement which reveals a possible violation of the law. (5) Failure to file a timely disclosure: If a person required to file a financial disclosure statement with the Board of Ethics has failed to file a disclosure statement or has filed a deficient statement, the Board of Ethics shall notify the reporting person in writing, state the failure to file or detail the deficiency, provide the person with a fifteen-day period to cure the deficiency and advise the person of the penalties for failure to comply with the reporting requirements. If the person fails to make such filing or fails to cure the deficiency within the specified time period, the Board of Ethics shall send a notice of delinquency to the reporting person and to the appointing authority for such person. (6) Opportunity to be heard: If a reporting person has filed a statement which reveals a possible violation of a duly adopted Code of Ethics of the City of Schenectady, local law, ordinance or resolution or if the Board of Ethics receives a sworn complaint alleging such a violation or if the Board of Ethics determines on its own initiative to investigate a possible violation, the Board of Ethics shall notify the reporting person in writing, describe the possible or alleged violation of such Code of Ethics, local law, ordinance or resolution or of this chapter and provide the person with a fifteen-day period in which to submit a written response setting forth information relating to the activities cited as a possible or alleged violation of law. If the Board of Ethics thereafter makes a determination that further inquiry is justified, it shall give the reporting person an opportunity to be heard. The Board shall also inform the reporting individual of its rules regarding the conduct of adjudicatory proceedings and appeals and the due process procedural mechanisms available to such individual. 9 (a) If the Board determines at any stage of the proceeding that there is no violation or that any potential conflict of interest violation has been rectified, it shall so advise the reporting person and the complainant, if any. All of the foregoing proceedings shall be confidential. (b) If the Board determines that there is reasonable cause to believe that a violation has occurred, it shall send a notice of reasonable cause to the reporting person, to the complainant, if any, and to the City Council of the City of Schenectady. § 48 - 20. Enforcement and Penalties. (A) Any municipal officer or employee who violates this code may be censured, fined, suspended or removed from office or employment in the manner provided by law. (B) A reporting individual who knowingly and willfully fails to file an annual statement of financial disclosure or who knowingly and willfully with intent to deceive makes a false statement or gives information which such individual knows to be false on such statement of financial disclosure filed pursuant to this section shall be assessed a civil penalty in an amount not to exceed ten thousand dollars ($10,000.00). Assessment of a civil penalty hereunder shall be made by the Board of Ethics. (C) For a violation of this chapter, the board of ethics of the political subdivision or other municipality may, in lieu of a civil penalty, refer a violation to the appropriate prosecutor and upon such conviction, but only after such referral, such violation shall be punishable as a class A misdemeanor. This excludes conduct which constitutes a violation of subdivision twelve of section seventy-three of the Public Officers Law. (D) A civil penalty for false filing may not be imposed hereunder in the event a category of "value" or "amount" reported hereunder is incorrect unless such reported information is falsely understated. (E) Notwithstanding any other provision of law to the contrary, no other penalty, civil or criminal may be imposed for a failure to file, or for a false filing, of such statement, except that the appointing authority may impose disciplinary action as otherwise provided by law. § 48 - 21. Posting and distribution. (a) The Mayor must promptly cause a copy of this code, and a copy of any amendment to this code, to be posted publicly and conspicuously in each building under the municipality’s control. The code must be posted within ten days following the date on which the code takes effect. An amendment to the code must be posted within ten days following the date on which the amendment takes effect. (b) The Mayor must promptly cause a copy of this code, including any amendments to the code, to be distributed to every person who is or becomes an officer and employee of the City of Schenectady. 10 (c) Every municipal officer or employee who receives a copy of this code or an amendment to the code must acknowledge such receipt in writing. Such acknowledgments must be filed with the clerk of the municipality who must maintain such acknowledgments as a public record. (d) The failure to post this code or an amendment to the code does not affect either the applicability or enforceability of the code or the amendment. The failure of a municipal officer or employee to receive a copy of this code of ethics or an amendment to the code, or to acknowledge receipt thereof in writing, does not affect either the applicability or enforceability of the code or amendment to the code. § 48 - 22. WHISTLEBLOWER PROTECTION The City of Schenectady hereby recognizes the prohibition against retaliatory personnel action provided in Article 20-C of the New York State Labor Law and shall enforce the provisions of the law. § 48 - 23. Effective date. This code takes effect immediately. Approved as to form this _____ day of March, 2012. ____________________________ John R. Polster, Esq. Corporation Counsel 11 DRAFT FOR DISCUSSION PURPOSES ONLY JANUARY 24, 2012 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF SCHENECTADY ADOPTING A BOND ORDINANCE At a meeting of the City Council of the City of Schenectady, New York, duly held in Schenectady, New York on the 13th day of February, 2012. Present: Absent: Also Present: ORDINANCE NO. 2012-__ BOND ORDINANCE, DATED FEBRUARY 13, 2012 AUTHORIZING THE ISSUANCE OF $2,815,000 AGGREGATE PRINCIPAL AMOUNT SERIAL BONDS OF THE CITY OF SCHENECTADY, NEW YORK, PURSUANT TO THE LOCAL FINANCE LAW TO FINANCE THE RECONSTRUCTION OF STORMWATER AND WASTEWATER INFRASTRUCTURE. WHEREAS, the City Council of the City of Schenectady (the “City Council” and the “City”, respectively), hereby determines that it is in the public interest of the City to authorize the financing of the reconstruction of stormwater and wastewater infrastructure and related incidental costs at a total estimated cost of $2,815,000, and WHEREAS, the City Council has not taken any action or adopted any local law which would require the effectiveness of this bond ordinance be subjected to a permissive or mandatory referendum, NOW THEREFORE BE IT RESOLVED BY THIS COUNCIL AS FOLLOWS: Section 1. There is hereby authorized to be issued serial bonds of the City, in the State of New York (the “State”), in the aggregate principal amount of $2,815,000 pursuant to the Local Finance Law, in order to finance the classes of objects or purposes, or specific objects or purposes, including costs of issuance, hereinafter described. 5855729.1  Section 2. The classes of objects or purposes, or specific objects or purposes (the “Project”), to be financed pursuant to this bond ordinance, the estimated maximum cost of such object or purpose, the principal amount of serial bonds authorized herein for such object or purpose, and the period of probable usefulness of such object or purpose pursuant to the applicable subdivision of paragraph a of Section 11.00 of the Local Finance Law, is as follows: reconstruction of stormwater and wastewater infrastructure, including the acquisition of original furnishings, equipment, machinery or apparatus and related incidental costs, at an estimated cost of $2,815,000, such class of objects or purposes having a period of probable usefulness of forty (40) years pursuant to subdivision 4 of paragraph a of Section 11.00 of the Local Finance Law. Such serial bonds shall have a maximum maturity of not to exceed forty (40) years computed from the earlier of (a) the date of the first issue of such serial bonds or (b) the date the first bond anticipation notes issued in anticipation of the issuance of such serial bonds; Section 3. The City Council has ascertained and hereby states that (a) the estimated maximum cost of the class of objects or purposes or specific objects or purposes listed in Section 2 above is $2,815,000, (b) no money has heretofore been authorized to be applied to the payment of the costs of such objects or purposes, and (c) the City Council plans to finance the costs of such objects or purposes from funds raised by the issuance of obligations authorized herein to permanently finance such objects or purposes and, to the extent they become available, proceeds of grants from the New York State Division of Homeland Security and Emergency Services and Federal Emergency Management Agency, and proceeds of any applicable insurance policies. The City Council hereby authorizes the City to finance the cost of the Project through the sale of obligations authorized hereunder to the New York State Environmental Facilities Corporation (“EFC”) through its Hurricane Emergency Loan Program (“HELP”) and/or any other program administered by EFC for which the City and the Project qualify for funding (the “Other EFC Programs”). Section 4. Subject to the terms and conditions of this bond ordinance and the Local Finance Law, and pursuant to the provisions of Sections 21.00, 30.00, 50.00 and 56.00 to 60.00, inclusive, of the Local Finance Law, the power to authorize bond anticipation notes in anticipation of the issuance of the serial bonds authorized by this bond ordinance and the renewal of such bond anticipation notes and the power to prescribe the terms, form and contents of such serial bonds and such bond anticipation notes, including renewals thereof, and the power to issue, sell and deliver such serial bonds and such bond anticipation notes, including renewals thereof, is hereby delegated to the Director of Finance of the City, as chief fiscal officer of the City. Such power shall include the power to consolidate the obligations authorized herein with other obligations of the City and to authorize the use of substantially level or declining debt service in accordance with the provisions of Section 21 of the Local Finance Law. The Director of Finance is hereby authorized to execute on behalf of the City all serial bonds, issued pursuant to this bond ordinance and all bond anticipation notes, including renewals thereof, issued in anticipation of the issuance of such serial bonds, and any documentation required in connection with HELP and any Other EFC Program, and the City Clerk is hereby authorized to affix the seal of the City to all such serial bonds and all such bond anticipation notes, including renewals thereof, and to attest such seal. In the absence of the Director of Finance, the Deputy Director of Finance is hereby authorized to exercise the powers delegated to the Director of Finance by this Ordinance. 5855729.1  Section 5. This Bond Ordinance shall constitute the declaration of the City’s “official intent” to reimburse expenditures with proceeds of the Bonds and notes, as required by United States Treasury Regulation Section 1.150-2. Except as otherwise permitted by United States Treasury Regulation Section 1.150-2, the City will not use proceeds of the Bonds or notes to reimburse itself for prior expenditures for the Purpose unless: (1) the original expenditure was made not more than 60 days prior to the adoption of this Bond Ordinance, (2) the reimbursement will be made within three years after the later of the date the original expenditure was paid or the date the Purpose is placed in service or abandoned. Section 6. When this bond ordinance takes effect, the City Clerk of the City shall cause the same to be published together with a notice in substantially the form prescribed by Section 81.00 of the Local Finance Law in The Daily Gazette , a newspaper having a general circulation in the City. The validity of the bonds authorized by this bond ordinance and of bond anticipation notes issued in anticipation of the sale of such bonds may be contested only if such obligations are authorized for an object or purpose for which the City is not authorized to expend money, or the provisions of law which should be complied with at the date of the publication of this bond ordinance 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 such obligations are authorized in violation of the provisions of the Constitution of the State of New York. Section 7. The faith and credit of the City are hereby and shall be irrevocably pledged for the punctual payment of the principal of and interest on all obligations authorized and issued pursuant to this bond ordinance as the same shall become due. Section 8. The City intends to issue the obligations authorized by this bond ordinance to finance the costs of the purposes described in Section 2 hereof. The City covenants for the benefit of the holders of the obligations authorized herein that it will not make any use of the proceeds of such obligations, any funds reasonably expected to be used to pay the principal of or interest on such obligations, or any other funds of the City, and will not make any use of the facilities financed with the proceeds of such obligations which would cause the interest on such obligations to become subject to federal income taxation under the Internal Revenue Code of 1986, as amended (the “Code”) (except, to the extent applicable, for the alternative minimum tax imposed on corporations by section 55 of the Code) or subject the City to any penalties under section 148 of the Code, and that it will not take any action or omit to take any action with respect to such obligations, the proceeds thereof or any facilities financed thereby if such action or omission would cause the interest on such obligations to become subject to federal income taxation under the Code (except, to the extent applicable, for the alternative minimum tax imposed on corporations by section 55 of the Code) or subject the City to any penalties under Section 148 of the Code. The foregoing covenants shall remain in full force and effect notwithstanding the defeasance of such obligations until the date which is 60 days after the final maturity date or earlier prior redemption date thereof. Section 9. For the benefit of the holders and beneficial owners from time to time of the obligations authorized pursuant to this ordinance (the “obligations”), the City agrees, in accordance with and as an obligated person with respect to the obligations, under Rule 15c2-12 promulgated by 5855729.1 the Securities Exchange Commission pursuant to the Securities Exchange Act of 1934 (the “Rule”), to provide or cause to be provided such financial information and operating data, financial statements and notices, in such manner, as may be required for purposes of the Rule. Section 10. This bond ordinance shall take effect immediately upon its adoption by the City Council of the City. AYES NAYS ABSENT 5855729.1 STATE OF NEW YORK ) ) SS.: COUNTY OF SCHENECTADY ) I, the undersigned Clerk of the City of Schenectady, do hereby certify as follows: 1. A Regular Meeting of the City Council of the City of Schenectady, State of New York, was duly held on February ____, 2012, and Minutes of said meeting have been duly recorded in the Minute Book kept by me in accordance with law for the purpose of recording the Minutes of meetings of said Council. I have compared the attached Extract with said Minutes so recorded and said Extract is a true copy of said Minutes and of the whole thereof insofar as said Minutes relate to matters referred to in said Extract. 2. Said Minutes correctly state the time when said meeting was convened and the place where such meeting was held and the members of said Council who attended said meeting. 3. Public Notice of the time and place of said meeting was duly given to the public and the news media in accordance with the Open Meetings Law, constituting Chapter 511 of the Laws of 1976 of the State of New York, and that the members of said Council had due notice of said meeting and that the meeting was in all respects duly held and a quorum was present and acted throughout. IN WITNESS WHEREOF, I have hereunto set my hand and have hereunto affixed the corporate seal of the City of Schenectady this ____ day of February, 2012. ____________________________________ City Clerk [SEAL] 5855729.1  LEGAL NOTICE The bond ordinance published herewith has been adopted on the 13th day of February, 20121, and the validity of the obligations authorized by such ordinance may be hereafter contested only if such obligations were authorized for an object or purpose for which the City of Schenectady is not authorized to expend money or if the provisions of law which should have been complied with as of the date of publication of this notice were not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within twenty (20) days after the date of publication of this notice, or such obligations were authorized in violation of the provisions of the constitution. Eileen Versaci City Clerk BOND ORDINANCE, DATED FEBRUARY 13, 2012 AUTHORIZING THE ISSUANCE OF $2,815,000 AGGREGATE PRINCIPAL AMOUNT SERIAL BONDS OF THE CITY OF SCHENECTADY, NEW YORK, PURSUANT TO THE LOCAL FINANCE LAW TO FINANCE THE RECONSTRUCTION OF STORMWATER AND WASTEWATER INFRASTRUCTURE. WHEREAS, the City Council of the City of Schenectady (the “City Council” and the “City”, respectively), hereby determines that it is in the public interest of the City to authorize the financing of the reconstruction of stormwater and wastewater infrastructure and related incidental costs at a total estimated cost of $2,815,000, and WHEREAS, the City Council has not taken any action or adopted any local law which would require the effectiveness of this bond ordinance be subjected to a permissive or mandatory referendum, NOW THEREFORE BE IT RESOLVED BY THIS COUNCIL AS FOLLOWS: Section 1. There is hereby authorized to be issued serial bonds of the City, in the State of New York (the “State”), in the aggregate principal amount of $2,815,000 pursuant to the Local Finance Law, in order to finance the classes of objects or purposes, or specific objects or purposes, including costs of issuance, hereinafter described. Section 2. The classes of objects or purposes, or specific objects or purposes (the “Project”), to be financed pursuant to this bond ordinance, the estimated maximum cost of such object or purpose, the principal amount of serial bonds authorized herein for such object or purpose, and the period of probable usefulness of such object or purpose pursuant to the applicable subdivision of paragraph a of Section 11.00 of the Local Finance Law, is as follows: reconstruction of stormwater and wastewater infrastructure, including the acquisition of original furnishings, equipment, machinery or apparatus and related incidental costs, at an estimated cost of $2,815,000, such class of objects or purposes having a period of probable usefulness of forty (40) years pursuant to subdivision 4 of paragraph a of Section 11.00 of the Local Finance Law. 5855729.1  Such serial bonds shall have a maximum maturity of not to exceed forty (40) years computed from the earlier of (a) the date of the first issue of such serial bonds or (b) the date the first bond anticipation notes issued in anticipation of the issuance of such serial bonds; Section 3. The City Council has ascertained and hereby states that (a) the estimated maximum cost of the class of objects or purposes or specific objects or purposes listed in Section 2 above is $2,815,000, (b) no money has heretofore been authorized to be applied to the payment of the costs of such objects or purposes, and (c) the City Council plans to finance the costs of such objects or purposes from funds raised by the issuance of obligations authorized herein to permanently finance such objects or purposes and, to the extent they become available, proceeds of grants from the New York State Division of Homeland Security and Emergency Services and Federal Emergency Management Agency, and proceeds of any applicable insurance policies. The City Council hereby authorizes the City to finance the cost of the Project through the sale of obligations authorized hereunder to the New York State Environmental Facilities Corporation (“EFC”) through its Hurricane Emergency Loan Program (“HELP”) and/or any other program administered by EFC for which the City and the Project qualify for funding (the “Other EFC Programs”). Section 4. Subject to the terms and conditions of this bond ordinance and the Local Finance Law, and pursuant to the provisions of Sections 21.00, 30.00, 50.00 and 56.00 to 60.00, inclusive, of the Local Finance Law, the power to authorize bond anticipation notes in anticipation of the issuance of the serial bonds authorized by this bond ordinance and the renewal of such bond anticipation notes and the power to prescribe the terms, form and contents of such serial bonds and such bond anticipation notes, including renewals thereof, and the power to issue, sell and deliver such serial bonds and such bond anticipation notes, including renewals thereof, is hereby delegated to the Director of Finance of the City, as chief fiscal officer of the City. Such power shall include the power to consolidate the obligations authorized herein with other obligations of the City and to authorize the use of substantially level or declining debt service in accordance with the provisions of Section 21 of the Local Finance Law. The Director of Finance is hereby authorized to execute on behalf of the City all serial bonds, issued pursuant to this bond ordinance and all bond anticipation notes, including renewals thereof, issued in anticipation of the issuance of such serial bonds, and any documentation required in connection with HELP and any Other EFC Program, and the City Clerk is hereby authorized to affix the seal of the City to all such serial bonds and all such bond anticipation notes, including renewals thereof, and to attest such seal. In the absence of the Director of Finance, the Deputy Director of Finance is hereby authorized to exercise the powers delegated to the Director of Finance by this Ordinance. Section 5. This Bond Ordinance shall constitute the declaration of the City’s “official intent” to reimburse expenditures with proceeds of the Bonds and notes, as required by United States Treasury Regulation Section 1.150-2. Except as otherwise permitted by United States Treasury Regulation Section 1.150-2, the City will not use proceeds of the Bonds or notes to reimburse itself for prior expenditures for the Purpose unless: (1) the original expenditure was made not more than 60 days prior to the adoption of this Bond Ordinance, (2) the reimbursement will be made within three years after the later of the date the original expenditure was paid or the date the Purpose is placed in service or abandoned. 5855729.1  Section 6. When this bond ordinance takes effect, the City Clerk of the City shall cause the same to be published together with a notice in substantially the form prescribed by Section 81.00 of the Local Finance Law in The Daily Gazette , a newspaper having a general circulation in the City. The validity of the bonds authorized by this bond ordinance and of bond anticipation notes issued in anticipation of the sale of such bonds may be contested only if such obligations are authorized for an object or purpose for which the City is not authorized to expend money, or the provisions of law which should be complied with at the date of the publication of this bond ordinance 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 such obligations are authorized in violation of the provisions of the Constitution of the State of New York. Section 7. The faith and credit of the City are hereby and shall be irrevocably pledged for the punctual payment of the principal of and interest on all obligations authorized and issued pursuant to this bond ordinance as the same shall become due. Section 8. The City intends to issue the obligations authorized by this bond ordinance to finance the costs of the purposes described in Section 2 hereof. The City covenants for the benefit of the holders of the obligations authorized herein that it will not make any use of the proceeds of such obligations, any funds reasonably expected to be used to pay the principal of or interest on such obligations, or any other funds of the City, and will not make any use of the facilities financed with the proceeds of such obligations which would cause the interest on such obligations to become subject to federal income taxation under the Internal Revenue Code of 1986, as amended (the “Code”) (except, to the extent applicable, for the alternative minimum tax imposed on corporations by section 55 of the Code) or subject the City to any penalties under section 148 of the Code, and that it will not take any action or omit to take any action with respect to such obligations, the proceeds thereof or any facilities financed thereby if such action or omission would cause the interest on such obligations to become subject to federal income taxation under the Code (except, to the extent applicable, for the alternative minimum tax imposed on corporations by section 55 of the Code) or subject the City to any penalties under Section 148 of the Code. The foregoing covenants shall remain in full force and effect notwithstanding the defeasance of such obligations until the date which is 60 days after the final maturity date or earlier prior redemption date thereof. Section 9. For the benefit of the holders and beneficial owners from time to time of the obligations authorized pursuant to this ordinance (the “obligations”), the City agrees, in accordance with and as an obligated person with respect to the obligations, under Rule 15c2-12 promulgated by the Securities Exchange Commission pursuant to the Securities Exchange Act of 1934 (the “Rule”), to provide or cause to be provided such financial information and operating data, financial statements and notices, in such manner, as may be required for purposes of the Rule. Section 10. This bond ordinance shall take effect immediately upon its adoption by the City Council of the City. 5855729.1  MEMO Date: March 9, 2012 To: City Council CC: Mayor Finance From: John Polster, Law Department - 382-5073 Re: Bond Issue To All: You will be having a public hearing on Monday, March 12, 2012 relative to the issuance of bonds totaling approximately $2,815,000. This memo is to outline some of the circumstances surrounding this matter. Last year the City suffered damage to several areas as a result of Hurricane Irene. In brief, those areas are: - Vale Park – There were several manholes washed out and a slope failure. This required complete replacement of the manholes and stabilization of the slope. - Former ALCO site – A manhole was washed out, a 36 inch storm sewer became plugged and damaged, and a storm sewer outfall was damaged. - Stockade Storm Sewer - Because of a series of minor problems in the flood prone areas of the Stockade, it was necessary to do a cleaning and videoing of the sanitary and storm sewer collection systems from Cucumber Alley to Nott Street. - North Ferry Pump Station – This facility suffered major damage, both to the structure and to the equipment. We have three options. The first would be to just restore the facility to its pre-storm condition. While the engineering study is not yet finalized, the  cost of this option would be approximately $410,000. The second option would be to make both repairs and upgrades to minimize the risk of similar damage in the future. Again, without final engineering, the cost of this would be approximately $1,120,000. It should be noted that very significant portion of this amount would be taken into consideration when determining the amount of financial assistance that FEMA and the New York State Environmental Facilities Corporation (EFC) are able to provide to the City. The final option would be to do a full replacement of the facility at an approximate cost of $3,020,000.00. Unfortunately the last option would not provide for any substantial increase in FEMA/EFC assistance. The administration believes that the second option is the one that should be selected. - South Ferry Street Pump Station – The equipment in this facility (part of the sanitary sewer system) was completely submerged and damaged by the flooding. Most of the labor for the repairs on this facility will be done by City employees with the cost of materials and equipment anticipated to be approximately $30,000. - Storm Sewer Rack – A sewer rack is a structure that prevents tree limbs, debris, etc., from entering the storm sewer. One on Van Guysling Avenue was damaged and needed to be replaced. The cost was $11,148.00. - Edison Avenue – There is an archway below Edison Avenue through which Mill Creek and a host of utilities (both ours and National Grid’s) pass. This archway suffered significant damage and needs to be replaced. Again, engineering is not complete, but cost is estimated to be approximately $600,000. The costs associated with the above are outlined in detail in the accompanying spreadsheet. The numbers that are important to note are as follows: Total Cost of Completed Work: $ 1,020,304.04 Amount Paid to Date: $ 378,001.89 Outstanding Invoices: $ 642,302.15 Estimate for remaining work: $ 1,750,000.00 Total of All Projects: * $ 2,770,304.04 Proposed Bond Issue (including cost of issuance): $ 2,815,000.00 * This amount does not include all of the engineering and other professional sevices.  Even though the final amounts are “soft” (because engineering and bidding have not been completed), it is believed to be in the best interest of the City to proceed with the bonding as soon as possible. Because of the Emergency Declarations that were made, there are Federal funds that are being made available through the New York State Environmental Facilities Corporation (EFC). Through recent discussions with the EFC, it is known that the City would qualify for a $1,000,000 interest free loan. If the City had already spent over that amount, we would be eligible for the loan upon presentation of the paid invoices. However, as noted above, we have only spent $378,001.89. Going through the process of issuing the bond will place limitations and qualifications on how the money will be spent and satisfy the requirements of the EFC. Hence, the only way (without the immediate payment of the outstanding invoices) that the City will be eligible for the loan from EFC is to proceed with the bond issue now (we are facing strict time limitations on the availability of the loan). Once the bond ordinance is passed, the City will be eligible for the loan. Once the money from the loan is received, the money can be used for payment of the outstanding invoices and to pay down a portion of the bond. Based upon the foregoing, the Law Department recommends passage of the proposed bond ordinance. Appendix: Tropical Storm Irene Expenses. Payment Contractor: Work: Cost: Status: A. Potts Construction Co., Inc. Alco - Excavate Mud Covered Manholes $2,525.00 $2,525.00 A. Potts Construction Co., Inc. Alco - Excavate Mud Covered Manholes $5,310.00 $5,310.00 Barton & Loguidice, PC N Ferry St PS $22,800.00 $20,300.00 Carver Construction, Inc. Build Berm - WTP $46,461.07 $46,461.07 Carver Construction, Inc. Concrete Sand & Gravel for Berm - WTP $37,183.84 $37,183.84 Carver Construction, Inc. ALCO Storm Pipe Outfall, Manhole $46,253.00 unpaid Carver Construction, Inc. Vale Park Sanitary Manholes $630,216.00 $218,805.85 Carver Construction, Inc. Trash Rack $11,148.00 Carver Construction, Inc. Vale Park - Emergency Slope Stabilization $65,346.00 MJ Engineering & Land Surveying, PC Storm & Sanitary Manholes, Trash Rack $15,300.00 $12,650.00 MJ Engineering & Land Surveying, PC Front St Sanitary & Storm Sewers $32,400.00 $30,995.00 MJ Engineering & Land Surveying, PC 36" Storm Line $6,400.00 unpaid MJ Engineering & Land Surveying, PC Edison Avenue Culvert $30,900.00 unpaid Main Care Energy Diesel fuel for Generator $3,771.13 $3,771.13 Service Experts Heating & AC, LLC N Ferry St PS Furnace $2,513.00 unpaid Troy Motor Service Battery Charger $599.50 unpaid Veolia Water North America Clean & CCTV Front St $48,207.50 unpaid Veolia Water North America N Ferry St PS Automatic Switch Gear $12,970.00 unpaid Xylem Water Solutions USA, Inc. S Ferry St PS Control Panel (Estimate) $30,000.00 Edison Avenue Culvert Construction Estimate $600,000.00 North Ferry Street Construction Estimate $1,120,000.00