City Council

Minutes of the TROY CITY COUNCIL FINANCE WORKSHOP October 6, 2021 6:00 P.M. Due to the ongoing COVID-19 crisis and pursuant to NYS legislation S.50001/A.40001, this meeting was remotely via videoconference. The meeting was called to order at 6:06 p.m. by Council President Mantello. Pledge of Allegiance Roll Call: The roll being called, the following answered to their names: Council Member Gulli, Council Member Ashe-McPherson, Council Member Steele, Council Member Cummings, Council Member Zalewski, Council Member McDermott, Council President Mantello, Chair. In attendance were Mayor Patrick Madden, Deputy Mayor Monica Kurzejeski, and Comptroller Andrew Piotrowski. Shadrach Treat from Siemens gave a presentation on the status of facility and lighting improvements in the City of Troy. Comptroller Piotrowski gave an update on the status of the City’s bonded projects. Adjournment The meeting adjourned at 7:31 p.m. A video recording of this meeting is on file at the City Clerk's office. EPC Progress Report for City of Troy Phase 1, 2, & 3 Where People, Process, and Technology Converge to Create an Adaptable Environment Appendix A October 5th, 2021 usa.siemens.com/totallycities Multi-Phase Project Overview Project Goals Leverage Savings for Infrastructure Improvements Interconnect Street Lights for Safety & Future Technologies Develop a Roadmap for Scalable Smart City Initiatives Focus on Infrastructure Improvements for Fire Stations Improve Efficiency & Comfort for all Buildings Revitalize Aging Equipment Provide Mechanical/Electrical/Automation Services Provide Project in a Fiscally Responsible Manner Key Highlights Value Notes: Project Value $ 15,385,007.00 Self-funded from Savings, Avoided Costs, and Incentives Guaranteed Annual Energy Savings $ 453,022.00 Previous Utility Budget $638,670.00 National Grid Service Fee Annual Savings $ 938,951.00 Previous Annual Payment to NG for Street Light Maintenance Change Orders/Additional Expenses $ 0.00 Turnkey Design Build Project Building/Scope Percent Complete Building/Scope Percent Complete Police Station 100% DPW Buildings 50% Court House 100% Parking Garages 100% Fire Stations 99% Street Lighting 0% Appendix A Page 2 EPC Phase 1 - Facility Improvement Measures Police Station - $2,049,641.00 • Improve Holding Area Make Up Air System – Complete 3/26/2021 • Remove and replace existing 100% outside air unit with new indirect natural gas fired rooftop unit • Remove and replace (1) packaged 15-ton roof mounted condensing unit • Install New High Efficiency Boiler – Complete 3/26/2021 • Remove Dietrich hot water boiler and install condensing boiler and boiler pump • Remove and Replace (46) Fan Coil Units – Complete 3/26/2021 • LED Lighting Upgrades – Complete 9/15/2020 • BMS System Upgrade & Add Controls for New Equipment – Complete 3/12/2021 • Replace 50-Ton Chiller – Complete 3/26/2021 • Remove and replace existing failing Trane Unit Appendix A Page 3 EPC Phase 1 - Facility Improvement Measures Court House - $845,283.00 • Replace Roof Top Unit (RTU-1) – Completed 3/26/2021 • Zone ducted distribution system – Completed 11/12/2020 • Install (42) Supply air dampers in branch duct work with controls • LED Lighting Upgrades – Completed 9/15/2020 • Integrate to BMS System to control new equipment – Completed 3/26/2021 Parking Garages – 5th Avenue & State Street - $196,134.00 • LED Lighting Upgrades - Completed 9/15/2020 DPW Buildings – Main Building - $290,518.00 • LED Lighting Upgrades - Completed 9/15/2020 • Roof Replacement and Radiant Heat (last garage bay) – Completed 9/30/2020 Appendix A Page 4 EPC Phase 1 - Facility Improvement Measures Fire Stations - $3,089,622.00 • LED Lighting Upgrades At All (6) Stations – Completed 9/15/2020 • Replace (5) Existing Roofs With EPDM Synthetic Roofing – Completed 3/31/2021 • Station #’s – 2,3,4,5, DPW Garage • Excludes Canal Street Station #6 – Historic Building • Siemens to work with architect to determine cost to replace • Replace Windows At All (6) Fire Stations – Completed 3/31/2021 • Station #’s – 1,2,3,4,5 • Fire Station #1 Lansingburgh – Replace (1) RTU – Completed 3/26/2021 • Remove and replace (1) packaged rooftop gas fired unit • Fire Station #2 Bouton Road– Replace (1) RTU’s – Completed 3/26/2021 • Remove and replace (2) packaged rooftop gas fired units • Fire Station #5 Central Station – Fluid Cooler – Completed 3/26/2021 • Remove and replace fluid cooler located in the 2nd floor mechanical room • Install energy recovery unit ventilation system • Fire Station #4 North Street – Install New 50-55KW Generator – Completed 9/30/2021 • Canal Ave Fire Station – Install New Generator – Target 10/14/2021 • Everything installed & ready for factory startup Appendix A Page 5 EPC Phase 2 - Facility Improvement Measures Street Light LED Conversion - $3,313,809.00 • Completed Investment Grade Audit of Street Lighting Inventory – Completed 12/31/2019 • Reconcile Utility Bill Inventory – Completed 7/7/2020 • Reconciled National Grid Inventory against Siemens audit • Validated existing wattage & pole condition • PSC Approval to Acquire Street Lights – Completed 9/9/2021 • City Acquisition of Street Lights – Target – 10/15/2021 • Begin Install LED Street Lights – Target 12/29/2021 • Equipment lead time 8-10 weeks • Complete Install LED Street Lights – Target 6/22/2022 Appendix A Page 6 EPC Phase 3 - Facility Improvement Measures New Street Light & Traffic Lights LED Upgrade – $645,000.00 • Install 108 New Street Lights – Target – 12/29/2021 • Siemens/City to wire from double in-line fuse to fixture (NG Demarcation Point) • Upgrade Traffic Lights to LED – Target – 2/11/2022 • Siemens to upgrade 38 intersections to LED • Intersections provided by City DPW Buildings - $4,955,000.00 • Construct New Salt Shed – Target – 7/14/2022 • Maintenance Bldg. – Replace DPW Roof & Façade Restoration – Completed 7/30/2021 • Approximately 15,800 sq/ft of roof • Approximately 1,800 sq/ft of soffit, fascia, and wood deck upgrades • Repair south, west, and east elevation damage/deterioration • New DPW Maintenance Building – Target 2/23/2022 Appendix A Page 7  City Of Troy Summary of Debt Presentation All Funds Appendix B 10/06/2021 1  Overview of Presentation • Summary of outstanding debt currently by type • Summary of remaining balances not issued but authorized • Plan for the current debt moving forward Appendix B 2 Types of Debt Currently Outstanding Description General Garbage Water Sewer Outstanding Troy MAC X 5,910,258 Serial Bonds X X X 12,065,000 Bond Anticipation Notes X X X 59,502,975 NYS Retirement Loans X 2,789,309 Revenue Anticipation Notes X 3,300,000 Serial Bonds EFC X X 4,052,495 Bond Anticipation Notes EFC X X 10,768,865 Installment Purchase Debt X X 8,630,266 Appendix B 3  Troy MAC • Current amount outstanding = $5,910,258 • Last payment is 01/15/2022 • Balance outstanding includes bond accretion – Finance term for adjustment to present value of money from the date of original issuance • Recently approved NYS legislation authorizes the MAC to be closed within the 2022 calendar year Appendix B 4  Serial Bonds Description Remaining Balance Final Payment Frear Park Sprinkler System 815,000 08/01/2028 Vehicles / Seawall 4,970,000 08/01/2034 Vehicles / OCA Facility / Water Tank / Spring Ave. Bridge 5,600,000 08/01/2045 Arbitration Award – Retro Payment 680,000 06/10/2025 • Length of payback period is weighted average of the Period of Probable Usefulness (“PPU”) of all items included in the Serial Bond • Seawall payments are offset almost entirely by the FEMA grant received in 2021. Appendix B 5  Bond Anticipation Notes • Current amount outstanding = $59,502,975 • Two issuances – January & July – Tranche issuing philosophy • January has 59 different items • July has 29 different items • Having two issuances leads to times where the amount outstanding is high due to timing of reimbursements – Seawall & 2021 FEMA funding • Unissued authorized bond resolutions – 2020 Police Capital Plan • Issuing in January 2022 – Park Improvements. Appendix B • Issuing in January 2022 – 2021 DPU Capital Plan 6  NYS Retirement Loans • Current amount outstanding = $2,789,309 • 1 ERS loan & 1 PFRS loan prepaid in 2021 – 1 addition ERS loan proposed to be paid off in ordinance on 10/07 agenda • Final payment on all loans is 02/01/2027 assuming no further deferrals Appendix B 7  Revenue Anticipation Notes • Issued in November 2020 • Funds were never used and will be paid off in full November 2021 • Interest earned on monies will be used to offset the interest expense of the note Appendix B 8  EFC Debt • Water Fund & Sewer Fund debt financed through EFC as short-term debt then converted to long-term debt once the project is completed • Short-term debt is currently the Water Line Replacement Project & the CSO Project • Debt is reimbursed as invoices are paid by the City • EFC financing is used when there are grants associated with the projects which is a requirement Appendix B 9  Installment Purchase Debt Description Remaining Balance Final Payment Siemens Energy Improvements – 2012 1,489,094 07/01/2029 Fire Truck – 2012 351,038 03/01/2027 Turnout Gear 211,440 05/20/2025 Siemens Energy Improvements – Phase I 6,358,385 07/10/2040 Golf Course Equipment – 2018 46,330 10/14/2022 Golf Course Equipment – 2021 227,469 08/01/2026 • City considers this to be debt even though is a lease-purchase agreement • City should consider moving away from this debt moving forward in the future – Higher interest rates – New accounting rules from GASB Appendix B 10 Moving Forward With Current Debt In 2022 • Significant BAN pay-down in 2022 with – Budget appropriations – Unused debt proceeds – Grant reimbursements • Serial bond conversion of BANs in 2022 in both January & July – Plan for credit rating review based on consultation with Fiscal Advisors • Troy MAC closeout • Continued review of budgetary savings to prepay NYS retirement loans Appendix B 11