315.2012 G.F. settle.Wastewater RESOLUTION AUTHORIZING SETTLEMENT OF LITIGATION
BETWEEN THE TOWN AND CITY OF GLENS FALLS CONCERNING
BILLS ASSOCIATED WITH WASTEWATER TREATMENT
RESOLUTION NO.: 315,2012
INTRODUCED BY: Mr.Daniel Stec WHO MOVED ITS ADOPTION
SECONDED BY: Mr.Tim Brewer
WHEREAS, the City of Glens Falls (City) owns a Publicly Owned Treatment Works
Treatment Plant (POTW) for the treatment of wastewater and the Town of Queensbury (Town)
discharges wastewater to the POTW in accordance with a Wastewater Treatment Agreement
previously authorized by Town Board Resolution No.: 168,2002 (Agreement), and
WHEREAS, a number of provisions of that Agreement gave rise to confusion between the
parties which ultimately resulted in the City's commencement of litigation against the Town in State
Supreme Court on February 11, 2011 (Warren County Index Number 55367) (Action) claiming
additional monies due pursuant to the Agreement, and
WHEREAS, during the pendency of the Action, the parties authorized amendment of the
Agreement and thereafter entered into "Amendment # 1 to Wastewater Treatment Agreement
Between the City of Glens Falls and the Town of Queensbury Dated April 1, 2001" effective
August 1, 2012 (Amendment#1), and
WHEREAS, the parties have reached an agreement in principle that, if formally accepted by
the Town Board and the City Council, will not only resolve the outstanding litigation, but will
authorize action to minimize the possibility of future litigation,
NOW, THEREFORE, BE IT
RESOLVED, that the Queensbury Town Board hereby authorizes settlement of the Action
based upon the following terms:
1. All outstanding Operation and Maintenance costs accruing through and including July 31,2012
will be fully satisfied by the payment of$235,589;
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2. All outstanding Reconstruction costs accruing through and including December 31, 2011 will
be fully satisfied by the payment of$189,000;
3. At the time of settlement, the Town will purchase 150,000 gallons per day of additional
wastewater capacity at a cost of$1.10595 per gallon for a total payment of$165,892.50;
4. The Town will purchase 50,000 gallons per day of additional wastewater capacity each
successive year for three years at a cost of$1.10595 per gallon for a total of$165,892.50
(three payments of$55,297.50 each);
5. The Town will be obligated to purchase additional wastewater capacity in the future if the
Town's discharge (based upon the average during any given calendar month) exceeds its
purchased capacity;
6. In regard to the first paragraph of Section 4.04 of the Agreement, the parties will clarify
this provision to make clear that the Town need not seek and obtain prior approval from
the City where connections to Town sewer pipes are made, provided that the Town's
discharge is within its purchased capacity based upon the average discharge during any
given calendar month, however, the City's prior approval is needed before any further
connection sites are made to the City's sewer pipes;
7. All present and future "Operation and Maintenance" costs will be based upon a flat $2.00 per
thousand gallons ($1.496 per 100 cubic feet) rather than the method established previously by
the parties;
8. The parties will establish a Joint Sewer Committee, which will be solely advisory in nature,
made up of three appointees of the Town and three appointees of the City to meet on at least a
quarterly basis to discuss Town/City sewer related issues and report back to the Town and
City;
9. The Town and City will amend the Agreement to reflect the revisions agreed to in a manner
consistent with this Resolution and the attached Memorandum of Understanding; and
BE IT FURTHER,
RESOLVED, that upon execution by the Town and City Attorneys of the appropriate
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litigation settlement documents, the Town authorizes the making of the following payments:
Past "O&M" Bills (13 quarters) $235,589.00
Past Reconstruction $189,000.00
Additional Capacity (2012) $165,892.50
Current Payment: $590,481.50 Paid at the time of settlement
Additional Capacity (2013) $555297.50 Paid by February 28, 2014
Additional Capacity (2014) $555297.50 Paid by February 28, 2015
Additional Capacity (2015) $55,297.50 Paid by February 28, 2016
Future Payments: $165,892.50
and
BE IT FURTHER,
RESOLVED, that the Town Supervisor is authorized to execute a Memorandum of
Understanding with the City in a form acceptable to the Town Supervisor and Town Counsel and
substantially similar to the Memorandum of Understanding attached hereto, and
BE IT FURTHER,
RESOLVED, that the Town Board authorizes and directs the Town Supervisor to execute
Amendment 92 to the Agreement which will be consistent with the Memorandum of Understanding
executed on behalf of the parties and will be in a form acceptable to the Town Supervisor and Town
Counsel, and
BE IT FURTHER,
RESOLVED, that the Town Board expressly authorizes the Town Supervisor, Town Counsel,
Town Wastewater Director and Town Budget Officer to take any further action necessary to
effectuate the intent of this Resolution.
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Duly adopted this 23rd day of October, 2012,by the following vote:
AYES Mr. Metivier,Mr. Strough,Mr. Brewer,Mr. Stec
NOES None
ABSENT : Mr. Montesi
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