Loading...
2006-06-12 SP MTG21 SPECIAL TOWN BOARD MEETING 06-12-2006 MTG#21 263 SPECIAL TOWN BOARD MEETING MTG#21 JUNE 12, 2006 RES#302-304 7:00 P.M. BOARD MEMBERS PRESENT SUPERVISOR DANIEL STEC COUNCILMAN ROGER BOOR COUNCILMAN RICHARD SANFORD COUNCILMAN JOHN STROUGH COUNCILMAN TIM BREWER TOWN COUNSEL ROBERT HAFNER TOWN OFFICIALS EXECUTIVE DIRECTOR OF COMMUNITY DEVELOPMENT, MARILYN RYBA DIRECTOR OF WASTEWATER, MIKE SHAW TOWN HISTORIAN, MARILYN VAN DYKE PRESS POST STAR Supervisor Stec-Opened meeting. TRANSPORTATION CORPORATION – THE CEDARS – MR. GIEBINK, GREEN MOUNTAIN DEVELOPMENT PRESENT Mr. Giebink spoke to the board regarding the need for Transportation Corporation. Spoke with DEC during the past year noting they had changed their regulations noting their engineers did not know that they changed. The change in regulations was that any lateral feed into a municipal line, which, Bay Road would be of over twenty five hundred gallons either needs to be owned by the municipality or by private sewage corporation. Spoke with Randy Galusha sent him the on-site plans, which is a simple collection system on gravity sewer and pump station going out to the Bay Road sewer line. He pointed me in the direction of what needs to be done to form a Sewage Works Corporation. The Sewage Works Corporation cannot be formed without the consent of the Town noting his Attorney has prepared the formation document for the Sewage Works Corporation, which was forwarded to the Supervisor. The two shareholders of the Sewage Works Corporation are Cedars I and Cedars II. The stock of the corporation is put into escrow to the benefit of the Town noting all of that was done. Received the memo from the Town Attorney, which we tried to respond too, everything is very straightforward except for one item that is the question of approval by Department of Health or DEC. No other health department approval has ever been granted for a Sewage Works Corporation, knows there is Sewage Works Corporations out there. As far as Randy Galusha can surmise is that it has been DEC, which has approved the plans for these laterals. With that approval then the Town consents to the formation of a Sewage Works Corporation. Mr. Galsuha has reviewed the plans has sent back a memo, which basically says the plans will be formally approved upon the formation then the Certificate of Formation of the Sewage Works SPECIAL TOWN BOARD MEETING 06-12-2006 MTG#21 264 Corporation. We have to get this registered to register it we have to have the back page, which is the consent by the Town for the formation of it. We register it we send it to Mr. Galusha he will immediately turn around and stamp the plans then it is done. Councilman Sanford-Questioned what are the responsibilities and or powers that the Sewage Works Corporation would have other than addressing the needs of the Cedars? Mr. Giebink-That’s it. The Sewage Works Corporation would own the lines on the Cedars property. Councilman Sanford-Questioned why do they want a unique separate corporation rather than just have it as a situation where it is the responsibility of the Cedars? Mr. Gibing-Cannot directly answer that in that they changed their rules and regulations such that anything over twenty five hundred gallons needs to be either municipal own lines or a Sewage Works Corporation. Maybe in other parts of the State a private owner has not followed through in terms of maintenance and repairs on the sewer line. Councilman Sanford-Questioned if this is financed in any unique manner to assure that it will be able to satisfy future obligations in terms of serving the Cedars. How much money do you have to put into this corporation to form it? Mr. Giebink-Zero because the construction of it is within our construction budget and is bonded for completion of the sewer lines. All of the development and construction of the sewer line is bonded for its completion. For the operation of it, it is funded by the two shareholders, which is Cedars I and Cedars II. Councilman Sanford-In a practical point of view cannot see any reason for why this is being required. Wastewater Director, Mike Shaw-Spoke with Mr. Galusha he told me this has been done for sometime. It is apparently easier for DEC to enforce regulations or if there is a problem with the Transportation Corporation than an individual owner. Councilman Boor-How much of it is required to be paid for in advance where that portion is actually paid for. I would prefer that it doesn’t have debt associated with the sewer line. Mr. Giebink-There would be no debt on the sewer line. That would be deeded free and clear to the Sewage Works Corporation. It has its own deeded easement that is created on the survey plan. That deed described piece of land ten or twenty feet wide along with the sewer line would be deeded to the Sewage Works Corporation with no debt on it. Councilman Sanford-Noted that Surrey Fields is likely to have to go through a similar process. Councilman Sanford-Seems that the default entity becomes the Town. Town Counsel, Hafner-That is somewhat implicit you could end up being politically forced to step in and take over the line. What New York State is trying to do they have in their things that the Town has to assure itself that there will be guaranteed that they will at least operate during the first five years. That it will have continuous operation. Councilman Sanford-Questioned what kind of a guarantee. Town Counsel, Hafner-The Statue says by guarantee that is something for the Town Board to determine. Councilman Boor-If the Cedars goes into a Chapter 11 would like to think that the sewer infrastructure is paid for. Who has first lien rights on it? Town Counsel, Hafner-He just said it is going to be to the Transportation Corporation. Supervisor Stec-It might be a protection of the sewer asset itself that might be the main reason why they are pushing it. Councilman Sanford-Questioned what would be the recommendation if any that we ask of the Cedars and then down the road Surrey Fields in terms of some form of guarantee or fiscal protection should the contingency happen and there is a situation where we are forced to take over the ownership here. Town Counsel, Hafner-The determination of what is a reasonable guarantee or a security is something for the Town Board to decide. The Statue talks SPECIAL TOWN BOARD MEETING 06-12-2006 MTG#21 265 about the form of a bond or other security acceptable to the Town Board. You could consider something like a Letter of Credit has to be maintained. Supervisor Stec-I would think that one of the other ways that we could assure ourselves as a Town Board that we have an adequate level of confidence or guarantee as the Statue says could be in the fact that we have at this point we’ve been able to eyeball the design of the system. Perhaps one form in granting this Transportation Corporation and the risk is that before it has gone in the ground we know what the design is so Mike has an idea of what we could be potentially forced into owning. Councilman Strough-This is lateral we haven’t see any design. Mr. Giebink-Those plans have been with the Town for two and a half weeks or so. Wastewater Director, Mike Shaw-The situation you are talking about here certainly Surrey Fields could be considered something completely different they are going to be a contract customer. Just say Surrey Fields did go bankrupt or whatever and the Town ends up with you could create a district around Surrey Fields, tax those people, and make them pay. Town Counsel, Hafner-There are different costs that you are talking about. There is the cost of construction and then there is the cost of operation. I was focusing on the cost of operation. I think that the Town Board may have enough information before it to deal with the cost of construction. Until the thing is constructed, we are not letting it hook up to our line. Mr. Giebink has told us he already has Security Bonds for the construction. The bank is requiring them and you offer that you have us added on them as an additional. The building part is something that in a very short time that risk is going to be gone and we don’t need to let them hook up until that is satisfied. The part I am focusing on is item four in the memo that I gave you. To me that was going to be a part where I thought the Town Board might have the most discussions and issues with. You have a lot of flexibility on how to determine how you want it. Mr. Giebink-The Sewage Works Corporation, which is going to own the asset free and clear. Its two users are Cedars I and Cedars II, which are also the shareholders of the corporation. If the Sewage Works Corporation goes out of existence, that asset becomes the Town’s asset. If, in addition the Sewage Works Corporation had a lien position each Cedars I and Cedars II securing the payment of operating costs. Whoever owned the shares of the Sewage Corporation would then have the lien ability on both Cedars II and Cedars II. Councilman Boor-Seems fine to me. Supervisor Stec-I agree with Roger asked if it seemed reasonable, I see Tim nodding his head, yes not seeing anyone say no. Councilman Sanford- Questioned the net worth of the Cedars. Supervisor Stec-I don’t know. Councilman Boor-More than the sewer line. Councilman Sanford-It could be reasonable if it has a high net worth. Supervisor Stec-We are trying to cover the operation of a brand new sewer system for five years. I am sure he has more equity in the Cedars than the operation of this sewer system for five years. Mr. Giebink-In terms of operation if we continue to break that down there is the physical operating cost, which is very little. Beyond that in terms of my budget there are the sewer fees the user fees, which are paid directly to the Town, which really aren’t part of the Sewage Corporation at all because that’s paid for by the users Cedars I and Cedars II. The operating costs for the Sewage Corporation are just the physical repairs and maintenance in terms of the line. Councilman Sanford-Questioned how it works in terms of the costs that are going to be charged to the Cedars? Town Counsel, Hafner-It is unclear at this time. The cost to the sewer district will continue just as they are planning on now for everything outside SPECIAL TOWN BOARD MEETING 06-12-2006 MTG#21 266 of the Sewage Works. For the Sewage Works itself one of the requirements I heard you say that your stocks are going to be in escrow I haven’t seen any documents anything showing me that noting Mr. Shaw needs to get us that before Monday. The provision is that if they default if they quite operating the Town Board can own the stock they do not have to the escrow agreement requires it. Then you can step in and you have the authority you are the Transportation Company the Transportation Company has the right to charge fees for what it does. It is almost like a non-municipal sewer district you would have the right to charge within the area where your project is. That is something where you would have some discretion. The people who approve those rates are the Town the Town has to approve reasonable rates. Councilman Sanford-I don’t think there is a lot of liability on the part of the Town in this issue. Thinks we need to do what we have to do to facilitate it. Mr. Giebink-There is no stock until the corporation is formed and we can’t form it until the Town consents. Town Counsel Hafner-The escrow agreement has to exist noting Mike Shaw has to give it to us. Councilman Boor-There will be stock before you hook up. Mr. Giebink-There will be stock within two days of the Town consenting that it will be formed, registered and it will be stocked. Town Counsel, Hafner-Asked if there is a consensus to move forward. Town Board-In agreement. Town Counsel, Hafner -Went over his memo of June 6, 2006 with Town Board members regarding the procedure. After further discussion Town Counsel to draft resolution for June 19, Town Board Meeting. Councilman Boor-Spoke regarding Surrey Fields and the ownership of the grinder pumps. Town Counsel, Hafner-Is not sure what they are requiring the Transportation Corporation to own in Surrey Fields. Councilman Boor-Hopes that they can privately own the grinder pumps and it is not part of the corporation. Town Counsel, Hafner-What is DEC requiring to be in the Transportation Corporation? Councilman Boor-That is what we need to know. Town Counsel, Hafner-That is what we need from them. Recommended that it be put in writing form to DEC. Councilman Sanford-Recommended rather than having the Sewer Works Corporation have each homeowner as a shareholder have it as a wholly owned subsidiary of the Homeowners Corporation that way you have one shareholder. Surrey Field Association Member-Will contact DEC. Supervisor Stec-Questioned if Mr. Shaw has any problems with the direction they are heading. Wastewater Director, Mr. Shaw- Apparently DEC makes and protects their interest. The likelihood of this happening is not going to cause us too much pain we are not taking over infrastructure basically it impacts the O & M charges onto the users, which mean the people in that development. Mr. Giebink-Noted a groundbreaking th for the new Cedars building will be June 27. VANDUSEN HOUSE – MARILYN VANDYKE, GEORGE STARK, SUE BARDEN Marilyn Van Dyke spoke to the board regarding the VanDusen House, which is located on the property of the new Comfort Inn to be built of Route 9 north of Route 149. The house carries historic significance it is the last remaining house in the old French Mountain Hamlet. In terms of preservation, there are not a lot of preservation laws on the books in the Town noting they are looking to go this way in the future noting they need a way to address this issue. Spoke to the Planning Board in 2003 regarding SPECIAL TOWN BOARD MEETING 06-12-2006 MTG#21 267 this house noting that this house was of local historical significance and they need to think about preserving it. In August of 2005, DEC recommended that someone would be brought in to look at the historical issue with the house. Presented board members with a letter from the Warren County Planning Board, which says the VanDusen House not be demolished but evaluated for use as a Museum or Gift Shop or a use that will provide an opportunity for visitors to learn about the local history. Looked into the aspect of moving the house noting it would be possible to move it, it has already been moved it would not hurt to move it again. There are two parcels close to this. One is fourteen acres of land on Route 149, which cost $140,000. On Route 9 across from Leo Lobster’s, a house with small cabins is for sale the cost of this parcel is $235,000. We might want to look at the possibility of moving it to Hovey Pond Park or move it to the county building converting it into Visitors Center, which is something the county has been talking about. Councilman Sanford-Would like to see the house before he feels compelled to call it a significant historical home. Questioned if this was available for the Town Board to look at. Mr. Stark-Anytime you want. Supervisor Stec-To approach the County to see if they are interested. If considering Hovey Pond it would have to go through the Recreation Commission. Councilman Brewer-Questioned when the house needs to be moved. Unknown-As soon as possible would like it gone by the end of this month or the first part of July. Executive Director, Marilyn Ryba-There is a nd stipulation in the Planning Board approval for sixty days from May 22 so that would be the end of July. It asks for a Historical Report within sixty days of the May 22. Supervisor Stec-If the Town says we are not interested in this from the historic perspective what happens with the house. Mrs. Stark-It will be demolished we want the use of the property. Supervisor Stec-Asked Mrs. VanDyke to get more information regarding the cost for moving the house. Mr. Stark-Should have a SHIPO report within another thirty to forty days. After further discussion Town, Board members are to visit the site. Mrs. VanDyke-Spoke to the board regarding a program Marilyn Ryba and herself have been working on to be offered on the second Wednesday of July. It will be on preservation and a certified local government program why communities have this and what works. Believes it is time to look at some of these preservation ideas so it would be easier in the future when someone buys a parcel and they have something on it that there is some kind of a process and method. ROUTE 9 OUTDOOR DISPLAY SET BACKS Discussion regarding the possibility of changing current display setback requirements on Route 9 and other main commercial corridors to control clutter along the roads. Executive Director Ryba-Noted they were asked to look at the entire Route 9 from the Glens Falls boundary to Route 149. What actually seems to be the main core is the area that Ms. Bramley pointed out and Bruce has found as well. Maybe it is only a portion but you still need some kind of rational. Ms. Bramley-My intent was not to target just these businesses. Councilman Brewer-You are talking about all the corridors. Ms. Bramley-Yes.Councilman Boor-When we were talking about this, I think it was Main Street and Quaker, does not know why you would not include the main corridors. Councilman Sanford-Recommended limiting this to the commercial corridors, which was talked about, which might be Route 9 and Quaker Road. Thinks they need to do a Comprehensive Review on SPECIAL TOWN BOARD MEETING 06-12-2006 MTG#21 268 esthetics throughout neighborhoods noting it is another issue. Councilman Brewer-Main Street, Route 9, and Rte 254. Councilman Boor-Those are the three. We are showing a consistency with what we are trying to achieve. After further discussion, it was the decision of the board to have the Community Development Department to determine a new setback requirement either for all commercial corridors, or for each corridor based on the current commercial uses on the road noting the current building setback for Route 9 is 75 feet from the property line. TOWN WELCOME ROAD SIGN – SCHOOL STATE CHAMPIONS Discussion held regarding Welcome Road Signs. Councilman Strough recommended having one sign near the school at Exit 19 noting it could be on the school property. We could donate the sign to the school and it would be up to the school to install it. Councilman Brewer-Questioned the price of the signs. Councilman Strough-It could run about one hundred and fifty dollars depending on size. Questioned Town Board members if they support this idea, Town Board members in agreement. Councilman Strough to get prices and come back to board. DISCUSSION HELD Supervisor Stec spoke to the board regarding his meeting with members of the Hudson Valley Firemen’s Parade late Friday afternoon regarding their concert. DISCUSSION HELD Councilman Boor-Spoke to the board regarding the procedure for advertising for Town Counsel. Supervisor Stec to look into this tomorrow. Councilman Sanford noted it is to be in the local section to be in a block format want it to be noticeable. RESOLUTION ENTERING EXECUTIVE SESSION RESOLUTION NO. 302, 2006 INTRODUCED BY: Mr. Roger Boor WHO MOVED OF ITS ADOPTION SECONDED BY: Mr. Tim Brewer RESOLVED, that the Town Board of the Town of Queensbury hereby adjourns from Regular Session and enters Executive Session to discuss personnel and potential litigation. th Duly adopted this 12 day of June, 2006, by the following vote: Ayes: Mr. Boor, Mr. Sanford, Mr. Strough, Mr. Brewer Mr. Stec Noes: None Absent:None SPECIAL TOWN BOARD MEETING 06-12-2006 MTG#21 269 RESOLUTION ADJOURNING EXECUTIVE SESSION RESOLUTION NO. 303, 2006 INTRODUCED BY: Mr. Richard Sanford WHO MOVED FOR ITS ADOPTION SECONDED BY: Mr. Roger Boor RESOLVED, that the Town Board of the Town of Queensbury hereby adjourns from Executive Session no action taken and moves back into Regular Session. th Duly adopted this 12 day of June, 2006, by the following vote: Ayes: Mr. Sanford, Mr. Strough, Mr. Stec, Mr. Boor Noes: None Absent:Mr. Brewer RESOLUTION ADJOURNING SPECIAL TOWN BOARD MEETING RESOLUTION NO. 304, 2006 INTRODUCED BY: Mr. Roger Boor WHO MOVED FOR ITS ADOPTION SECONDED BY: Mr. John Strough RESOLVED, that the Town Board of the Town of Queensbury hereby adjourns its Special Town Board Meeting. th Duly adopted this 12 day of June, 2006, by the following vote: Ayes: Mr. Strough, Mr. Stec, Mr. Boor, Mr. Sanford Noes: None Absent:Mr. Brewer Respectfully Submitted, Darleen M. Dougher Town Clerk Town of Queensbury