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FINANCIAL\2020\Bond Resolution—Emergency Sewer Main Project—5-4-2020
RESOLUTION AUTHORIZING THE ISSUANCE OF UP TO
$533,000 IN SERIAL BONDS OF THE TOWN OF QUEENSBURY
TO PAY THE COST OF EMERGENCY REPLACEMENT OF SEWER
MAIN ALONG QUAKER ROAD; AND AUTHORIZING THE ISSUANCE
OF UP TO $533,000 IN BOND ANTICIPATION NOTES OF THE TOWN OF
QUEENSBURY FOR THE SAME PURPOSE
RESOLUTION NO.: ,2020
INTRODUCED BY:
WHO MOVED ITS ADOPTION
SECONDED BY:
WHEREAS, the Queensbury Town Board duly established the Town of Queensbury
Consolidated Sanitary Sewer District and the Route 9 Sanitary Sewer District (the "Districts") in
accordance with New York Town Law, and
WHEREAS, as a result of a break that occurred on the Districts' sewer force main in the
vicinity of 313 Quaker Road in early February 2020, which required notification of authorities
through the New York State Alerts System, the Town Supervisor declared an emergency and the
Town's Wastewater Director arranged for short-term, temporary repairs on an emergency basis
for public health and safety reasons; and
WHEREAS, under Town Law Section 202-a the Town Board is required to maintain the
sewer system; accordingly, additional replacement of the force main in this area must be
permanently repaired immediately to avoid a breach of the temporary repairs; and
WHEREAS, such replacement shall benefit both such Districts and the cost of this
project shall be apportioned between both Districts, and
WHEREAS, during the emergency repairs, it became clear that such problems with the
sewer main extend significantly further and must be replaced on an emergency basis to prevent
public health and environmental injuries; and
WHEREAS, the Town Board has received an engineer's proposal and cost estimate
describing the necessary emergency improvements, and
WHEREAS,the Town Board has determined that the improvements are a Type II Action
under the State Environmental Quality Review Act(SEQRA)and no further SEQRA review is
required; and
WHEREAS, in light of the urgent nature of the necessary emergency repairs and
concerns regarding possible injury to public health and the environment, the Town Board needs
to expedite this emergency project; and
WHEREAS, the expense of such maintenance is a charge upon the Districts and the
Town Board wishes to finance the improvements on behalf of the Districts;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN BOARD OF THE TOWN
OF QUEENSBURY, WARREN COUNTY,NEW YORK,AS FOLLOWS:
Section 1. It is hereby found and determined that it is in the public interest to replace
a portion of the District main in the area were the break took place at an estimated cost of
$533,000, such project is hereby authorized and the Town Supervisor is hereby authorized to
take all actions necessary to effectuate the intent of this Resolution.
Section 2. The specific object or purpose for which the obligations authorized by this
Resolution are to be issued is the acquisition, construction, and installation of approximately
1,400 feet of sewer main in the area where the break took place, and further including related
preliminary and incidental costs (the "Project"), all as detailed in the engineer's proposal and cost
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estimate. Such specific object or purpose is hereby authorized at a maximum estimated cost of
Five Hundred Thirty Three Thousand Dollars ($533,000).
Section 3. The plan for the financing of such maximum estimated cost is the issuance
of up to of Five Hundred Thirty Three Thousand Dollars ($533,000) in serial bonds or bond
anticipation notes of the Town on behalf of the Districts, hereby authorized to be issued pursuant
to the Local Finance Law.
The proceeds of the bonds or bond anticipation notes may be used to reimburse
expenditures paid by the Town from other funds or otherwise on or after the date of adoption of
this Bond Resolution. The Town may submit applications for grants and/or low interest loans
from the New York State Environmental Facilities Corporation (EFC) and/or other funding
source(s) and, to the extent that any such moneys are received, may apply such funds to the
payment of principal and interest on the bonds or bond anticipation notes. Pursuant to Local
Finance Law Sections 107.00[d][3](1) and 107.00[d][9], no down payment from current funds is
required.
Section 4. The Town Board anticipates that the Town may pay certain capital
expenditures in connection with the Project prior to the receipt of the proceeds of the Bonds.
The Town Board hereby declares its official intent to use Bond proceeds to reimburse the Town
for such Project expenditures occurring within sixty (60) days prior to adoption of this
Resolution. This section of the Resolution is adopted solely for the purpose of establishing
compliance with the requirements of Section 1.150-2 of the Treasury Regulations and does not
bind the Town to make any expenditure, incur any indebtedness or proceed with the acquisition,
construction and installation of the Project.
Section 5. It is hereby determined that the period of probable usefulness of the
specific object or purpose is forty (40) years, pursuant to Section 11.00(a)[4] of the New York
Local Finance Law. It is hereby further determined that the maximum maturity of the serial
bonds herein authorized will exceed five (5) years.
Section 6. The faith and credit of the Town of Queensbury, Warren County, New
York, are hereby irrevocably pledged for the payment of the principal of and interest on such
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obligations as they become due and payable. An annual appropriation shall be made in each year
sufficient to pay the principal of and interest on such obligations becoming due and payable in
such years. There shall annually be levied on all the taxable real property of the Districts a fee
sufficient to pay the principal of and interest on such obligations as they become due and
payable.
Section 7. For the purpose of paying the cost of the Project, including related
preliminary and incidental costs, there are hereby authorized to be issued serial bonds of the
Town up to a maximum amount of$533,000, the maximum maturity of which shall not exceed
the forty (40) year period of probable usefulness set forth above and which shall mature on or
before the date of the expiration of the period of probable usefulness as measured from the date
of the bonds or from the date of the first bond anticipation note issued in anticipation of the sale
of such bonds, whichever date is earlier. The bonds may be issued in the form of a statutory
installment bond.
Section 8. There are hereby authorized to be issued bond anticipation notes for the
specific object or purpose in an amount up to but not exceeding the $533,000 maximum amount
of serial bonds authorized to be issued, in anticipation of the issuance and sale of the serial bonds
authorized, including renewals of such bond anticipation notes.
Section 9. Any bond anticipation notes shall be payable from the proceeds derived
from the sale of the bonds or otherwise redeemed in the manner provided by Section 23.00 of the
Local Finance Law. The faith and credit of the Town are hereby irrevocably pledged for the
payment of the bond anticipation notes and the interest on them.
Section 10. There are no bond anticipation notes outstanding which have been
previously issued in anticipation of the sale of these bonds. Neither are the bond anticipation
notes hereby authorized renewal notes. These bond anticipation notes will be issued in
anticipation of bonds for an assessable improvement. These notes shall mature at such time as
the Town may determine and may be renewed from time to time, provided that in no event shall
such notes or renewals extend more than one (1) year beyond the original date of issue except as
permitted in the Local Finance Law.
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Section 11. Subject to the terms and conditions of this Resolution and of the Local
Finance Law, and pursuant to the provisions of Sections 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 Resolution and the renewal of
these notes, and the power to prescribe the terms, form and contents of the serial bonds and bond
anticipation notes and the power to sell and deliver the serial bonds and bond anticipation notes
issued in anticipation of the issuance of the bonds is hereby delegated to the Town Supervisor,
the Chief Fiscal Officer of the Town. The Town Supervisor is hereby authorized to sign any
serial bonds and bond anticipation notes issued in anticipation of the issuance of the serial bonds
and bond anticipation notes issued pursuant to this Resolution by manual signature, and the
Town Clerk is hereby authorized to affix or impress or imprint a facsimile of the seal of the Town
to any of the serial bonds or bond anticipation notes and to attest such seal by manual signature.
The Town Supervisor, as Chief Fiscal Officer of the Town, is authorized to execute and deliver
any documents and to take such other action as may be necessary and proper to carry out the
intent of the provisions of this Resolution.
Section 12. The exact date of issuance of the bonds and/or notes and the exact date
upon which they shall become due and payable shall be fixed and determined by the Chief Fiscal
Officer, provided, however, that the maturity of the notes or renewals shall not exceed one (1)
year from the date of issue except as permitted by the Local Finance Law.
Section 13. The Chief Fiscal Officer shall prepare the bonds and/or notes and sell
them in accordance with the provisions of the Local Finance Law including, but not limited to,
the provisions of Section 169.00, if applicable, and at such sale shall determine the interest rate
to be borne by such bonds and/or notes. The Town Board authorizes the Chief Fiscal Officer to
establish substantially level annual debt service or a declining annual balance for the repayment
of such Bonds if he believes it is in the best interests of the Town.
Section 14. If issued, the bonds and/or notes shall be in registered form, and shall bear
interest at the determined rate.
Section 15. The Chief Fiscal Officer shall deliver the bonds and/or notes to the
purchaser only against a certified check or other immediately available funds. The proceeds of
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the sale of the bonds and/or notes shall be deposited and/or invested as required by Section
165.00 of the Local Finance Law, and the power to invest the proceeds of sale is hereby
delegated to the Chief Fiscal Officer and the power to invest in any instruments described in
Section 165.00 is expressly granted.
Section 16. To the extent that it is permitted to do so under the Internal Revenue Code
of 1986, as amended to the date hereof (the "Code"), the Town hereby designates the bonds
and/or notes as "qualified tax-exempt obligations" under Section 265(b)(3) of the Code. The
Town hereby covenants that, to the extent permitted under the Code in effect as of the date of
issuance of any bonds and/or notes, it will (i) take all actions on its part necessary to cause
interest on the bonds and/or notes to be excluded from gross income for purposes of Federal
income taxes and (ii) refrain from taking any action which would cause interest on the bonds
and/or notes to be included in gross income for purposes of Federal income taxes.
Section 17. The Town of Queensbury is a town partially within the Adirondack Park.
However, State lands subject to taxation within the Town's boundaries are assessed at less than
thirty percent (30%) of the total taxable assessed valuation of the Town, so permission of the
State Comptroller for the proposed expenditure and issuance of the bonds and/or notes is not
required under Local Finance Law Section 104.10(3).
Section 18. Miller, Mannix, Schachner & Hafner, LLC, Glens Falls, New York, is
hereby designated bond counsel.
Section 19. The validity of these serial bonds and bond anticipation notes may be
contested only if:
(1) These obligations are authorized for an object or purpose for which
the Town is not authorized to expend money; or
(2) The provisions of law which should be complied with at the date of
publication of this Resolution 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
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•
(3) Such obligations are authorized in violation of the provisions of the
State Constitution.
Section 20. The full text of this Resolution or a summary thereof shall be published in
The Post Star, which has been designated as the official newspaper of the Town, together with a
notice of the Town Clerk in substantially the form provided in Section 81.00 of the Local
Finance Law.
Section 21. The question of the adoption of this Resolution was duly put to a vote on
roll call which resulted as follows:
ROLL CALL
AYES:
NAYS:
ABSENT:
The Resolution was declared duly adopted by a vote of not less than two-thirds (2/3) of the
full membership of the Town Board.
DATED: May 4,2020
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NOTICES\ESTOPPEL Notice—Bond Summary—Emergency Sewer Main Replacement-5-4-2020
ESTOPPEL NOTICE AND SUMMARY OF BOND RESOLUTION
AUTHORIZING THE ISSUANCE OF UP TO $533,000
IN SERIAL BONDS AND/OR BOND ANTICIPATION NOTES
OF THE TOWN OF QUEENSBURY TO PAY THE COST OF
EMERGENCY REPLACEMENT OF SEWER MAIN ALONG QUAKER ROAD
The Bond Resolution which is summarized below was adopted by the Queensbury Town Board on May
4, 2020. The validity of the obligations authorized by the Bond Resolution may be contested only if(i)
the obligations were authorized for an object or purpose for which the Town of Queensbury is not
authorized to expend money or (ii) 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(iii) such obligations were authorized in violation of the provisions of the State Constitution.
The specific object or purpose for which the obligations authorized by the Bond Resolution are to be
issued is acquisition, construction, and installation of emergency replacement of a sewer force main in the
vicinity of Meadowbrook Road and Quaker Road, including related preliminary and incidental costs (the
"Project"). A break occurred on the Queensbury Consolidated Sanitary Sewer District sewer force main
in the vicinity of Meadowbrook Road and Quaker Road which required repairs on an emergency basis of
a small section of the sewer main for public health and safety reasons. During such repairs, the Town
Board discovered that additional portions of the sewer line in this area must be immediately replaced on
an emergency basis to avoid further breaks, causing possible environmental issues and damages to public
health if this sewer line cannot be used. As the Town Board is required to maintain the sewer system
under Town Law Section 202-a, such force main break must be permanently repaired immediately to
avoid another breach of the sewer main. The maximum estimated cost of the Project is $533,000. The
period of probable usefulness of the Project is forty (40) years, pursuant to Section 11.00(a)[4] of the New
York Local Finance Law. The plan for financing the maximum estimated cost is issuance of up to
$533,000 in serial bonds and/or bond anticipation notes of the Town. The Bond Resolution authorized
the issuance of serial bonds and/or bond anticipation notes, including renewals of the bond anticipation
notes, of the Town up to a maximum amount of $533,000, the maximum maturity of which will not
exceed the Project's 40-year period of probable usefulness. A tax sufficient to pay the principal of and
interest on such obligations as they become due and payable will be levied on all the taxable real property
of the District annually.
A full copy of the Bond Resolution will be available for public inspection for twenty (20) days following
publication of this Summary on the Town's website at queensbury.net. In compliance with the current
Town of Queensbury "COVID-19 Pandemic Response Plan", the Town Office Building remains closed to
public access. However, you can also obtain a copy of the Bond Resolution by mail, facsimile or e-mail
by calling the Town Clerk's Office at (518) 761-8234.
Dated: May , 2020
Caroline H. Barber
Queensbury Town Clerk