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2.1 '4 .l 2.1 WASTEWATER-SEWER\Consolidation Agreement—Approve to Consolidate Qby Con Route 9 West Tech Park Pershing—6-21-2021 RESOLUTION APPROVING FINAL CONSOLIDATION AGREEMENT FOR CONSOLIDATION OF FIVE (5) TOWN SANITARY SEWER DISTRICTS RESOLUTION NO.: ,2021 INTRODUCED BY: WHO MOVED ITS ADOPTION SECONDED BY: WHEREAS, New York General Municipal Law Article 17-A authorizes water and sewer districts to consolidate into combined districts if such combination "shall be conducive to the public health, welfare, and convenience and be of special benefit to the lands of the district", and WHEREAS, the Queensbury Consolidated Sanitary Sewer District was duly established by the Queensbury Town Board ("Town Board") to serve the business district of Queensbury, including portions of Aviation Road, Quaker Road, Upper Glen Street, Bay Road, Ridge Road, Meadowbrook Road,and numerous other side streets, and WHEREAS, the Route 9 Sewer District was duly established by the Town Board to serve the mostly commercial area along Route 9 from Weeks Road to Route 149, including portions of Weeks Road, Sweet Road and Lawton Avenue, and WHEREAS, the West Queensbury Consolidated Sanitary Sewer District was duly established by the Town Board to serve the West Queensbury area including Exit 18 of I-87 (Adirondack Northway) extending from the City of Glens Falls line at Western and Thomas Streets to the area just past Exit 18 on Corinth Road and encompasses the Carey Road Industrial Park and adjacent properties, and WHEREAS, the Technical Park Sewer District was duly established by the Town Board to serve the Queensbury Technical Park off Dix Avenue, portions of Dix Avenue and a portion of Luzerne Road, and WHEREAS, the Pershing, Ashley, Coolidge Sewer District was duly established by the Town Board to serve the area including Pershing Road, Ashley Place and Coolidge Avenue, and WHEREAS, the Town Board is the body responsible for the administration of all its sewer districts, including the aforesaid five(5) Sanitary Sewer Districts, and WHEREAS, the Town Wastewater Director studied whether it would be to the mutual benefit, and in the best interests of the customers each serves, to combine these five (5) Sanitary Sewer Districts into one District proposed to be named the "Greater Queensbury Consolidated Sanitary Sewer District," and determined that such a combination would create greater operating efficiencies and more equitable distribution of fiscal responsibilities, provide better sei vice to the public served by each District and generate cost savings by avoiding duplication in administrative services, and WHEREAS, in addition, the risk of isolated unpredictable failures and costs will be spread over the entire Consolidated District, expecting to result in a more financially stable District and will also better allow the Consolidated District to reliably finance its operating and capital costs, and WHEREAS, Town Counsel and the Town Wastewater Director prepared a proposed Consolidation Agreement and provided it to the Town Board for its review, and WHEREAS,New York General Municipal Law Article 17-A requires the local government entities to be consolidated to endorse a Consolidation Agreement by adoption of a joint Resolution to commence consolidation proceedings, and 2 .0 WHEREAS, the Town Board is the governing entity for each of the Districts, so the statutory requirement for a joint Resolution is satisfied by adoption of a single Resolution by the Town Board on behalf of each District, and WHEREAS, the Town Board adopted Resolution No.: 150,2021 on May 3`d, 2021 endorsing the proposed Consolidation Agreement and scheduling a Public Hearing to hear public comments on the proposed Consolidation Agreement, and WHEREAS, after providing notice as required by General Municipal Law Article 17-A, the Town Board conducted a Public Hearing on the proposed Consolidation Agreement on June 21", 2021, and the Town Board has considered the evidence given together with other information, and WHEREAS, the Town Board wishes to consolidate the Queensbury Consolidated Sanitary Sewer District (QCSSD), Route 9 Sanitary Sewer District, West Queensbury Sanitary Sewer District, Technical Park (Tech Park) Sanitary Sewer District and the Pershing, Ashley & Coolidge (PAC) Sanitary Sewer District in accordance with General Municipal Law Article 17-A, NOW,THEREFORE, IT IS HEREBY RESOLVED: 1. The Town Board hereby determines that consolidation of the Queensbury Consolidated Sanitary Sewer District (QCSSD), Route 9 Sanitary Sewer District, West Queensbury Sanitary Sewer District, Technical Park (Tech Park) Sanitary Sewer District and the Pershing, Ashley & Coolidge (PAC) Sanitary Sewer District as described in the Consolidation Plan is not an "action" for purposes of SEQRA review as it does not involve any project or physical activity, planning and policy making activity or adoption of agency rules, regulations and procedures, that may affect the environment. 3 2. The Town Board hereby determines that consolidation of the Queensbury Consolidated Sanitary Sewer District (QCSSD), Route 9 Sanitary Sewer District, West Queensbury Sanitary Sewer District, Technical Park (Tech Park) Sanitary Sewer District and the Pershing, Ashley & Coolidge (PAC) Sanitary Sewer District as described in the Consolidation Plan would be conducive to the public health, welfare, and convenience and be of special benefit to the lands of the Districts, approves the final Consolidation Agreement and authorizes the Town Supervisor to execute the Consolidation Agreement in substantially the form presented at this meeting. 3. The Town Board authorizes and directs the Town Supervisor, the Town Wastewater Director and the Town Clerk to take all actions necessary to effectuate this Resolution and the Consolidation Agreement. Duly adopted this 21 S`day of June, 2021 by the following vote: AYES NOES ABSENT: 4 AGREEIv(EN"rs\sEWERIConsolidation Agreement-Sewer Districts—June 2021 CONSOLIDATION AGREEMENT FOR CONSOLIDATION OF QUEENSBURY CONSOLIDATED SANITARY SEWER DISTRICT ROUTE 9 SANITARY SEWER DISTRICT WEST QUEENSBURY SANITARY SEWER DISTRICT TECHNICAL PARK SANITARY SEWER DISTRICT PERSHING, ASHLEY & COOLIDGE SANITARY SEWER DISTRICT THIS AGREEMENT is entered into by the Town of Queensbury, a New York municipal corporation with its offices at 742 Bay Road, Queensbury, New York(the "Town"). WHEREAS, New York General Municipal Law Article 17-a authorizes water and sewer districts to consolidate into combined districts if such combination "shall be conducive to the public health, welfare, and convenience and be of special benefit to the lands of the districts"; and WHEREAS, the Town Board has established several Sewer districts which have often been enlarged over the years by the addition of various Sewer District Extensions; and WHEREAS, the Queensbury Consolidated Sanitary Sewer District was duly established by the Queensbury Town Board ("Town Board") to serve the business district of Queensbury, including portions of Aviation Road, Quaker Road, Upper Glen Street, Bay Road, Ridge Road, Meadowbrook Road,and numerous other side streets; and WHEREAS, the Route 9 Sewer District was duly established by the Town Board to serve the mostly commercial area along Route 9 from Weeks Road to Route 149, including 1 portions of Weeks Road, Sweet Road and Lawton Avenue; and WHEREAS, the West Queensbury Consolidated Sanitary Sewer District was duly established by the Town Board to serve the West Queensbury area including Exit 18 of I-87 (Adirondack Northway) extending from the City of Glens Falls line at Western and Thomas Streets to the area just past Exit 18 on Corinth Road and encompasses the Carey Road Industrial Park and adjacent properties; and WHEREAS, the Technical Park Sewer District was duly established by the Town Board to serve the Queensbury Technical Park off Dix Avenue, portions of Dix Avenue and a portion of Luzerne Road; and WHEREAS, the Pershing, Ashley, & Coolidge Sewer District was duly established by the Town Board to serve the Broadacres area and currently serves only 32 single family residences; and WHEREAS, the Town Wastewater Director has studied whether it would be to the mutual benefit, and in the best interests of the customers served by each District, to combine the Queensbury Consolidated Sanitary Sewer District (QCSSD), Route 9 Sanitary Sewer District, West Queensbury Sanitary Sewer District, Technical Park (Tech Park) Sanitary Sewer District and the Pershing, Ashley & Coolidge (PAC) Sanitary Sewer District (each a "District" and, collectively, the "Districts") into one District, and has determined that such a combination would create greater operating efficiencies and more equitable distribution of fiscal responsibilities, provide better service to the public served by each District, and generate cost savings by avoiding duplication in administrative services; and 2 WHEREAS, The Chazen Companies has prepared an Engineer's Map, Plan and Report (MPR) presenting data and information relating to the proposed Sewer Districts consolidation; and WHEREAS, New York General Municipal Law Article 17-A requires endorsement of a Consolidation Agreement to commence proceedings to consolidate Districts, and the purpose of this Agreement is to comply with this requirement; NOW, THEREFORE, in consideration of the foregoing recitals, the Town Board sets forth the following terms and conditions for the consolidation: (a) Name of Each District to be Consolidated: The Districts to be consolidated are the Queensbury Consolidated Sanitary Sewer District (QCSSD), Route 9 Sanitary Sewer District, West Queensbury Sanitary Sewer District, Technical Park (Tech Park) Sanitary Sewer District and the Pershing, Ashley & Coolidge (PAC) Sanitary Sewer District. (b) Name of Proposed Consolidated District: The name of the proposed consolidated District would be the Greater Queensbury Consolidated Sanitary Sewer District (the "Consolidated District"). (c) RijZhts, Duties and Obligations of Proposed Consolidated District: All of the rights, duties and obligations of each of the separate Districts under existing contracts or agreements, including but not limited to those relating to personnel matters, providing of sanitary sewer services and payment of outstanding obligations, shall 3 become the rights, duties and obligations of the Consolidated District as of the effective date specified in paragraph (12) below. (d) Territorial Boundaries of Proposed Consolidated District: The boundaries of the Consolidated District will be the combined jurisdictional boundaries of the Districts. Exhibit A contains maps, for illustrative purposes, showing the present jurisdictional boundaries of the Districts and descriptions of the properties within the Districts. Exhibit B contains a list of the tax map numbers of the parcels that will be included in the Consolidated District. All Exhibits are incorporated herein and made a part hereof by this reference. (e) Type and/or Class of Proposed Consolidated District: The Consolidated District will be a sewer district. (f) Governmental Organization of Proposed District Insofar as it Concerns Elected and Appointed Officials and Public Employees, Along With Transitional Plan and Schedule for Elections and Appointments of Officials: The consolidation will have no effect on elected or appointed officials or public employees and, therefore, no transitional plan or schedule for elections or appointments of officials is needed. Employees involved with the operation and management of each of the existing Districts are currently employees of the Town of Queensbury and shall continue to be employees of the Town after consolidation. 4 (g) Fiscal Estimate of Cost of and Savings Which May Be Realized from Consolidation: With the exception of the Reservoir Park Sanitary Sewer District (see Section 2.3.7 of the MPR), all of the sanitary sewer districts within the Town of Queensbury send wastewater to the City of Glens Falls for treatment. This involves utilizing infrastructure that is often located in one or more other Sewer Districts within the Town. Accordingly, a failure of infrastructure within one District is likely to adversely affect service in one or more other Districts. The first Sewer District in Queensbury was formed in 1958; the most recent in 2017. Infrastructure in Districts which were formed decades ago will require repairs and replacement before those formed more recently in order to enable the entire system to continue to operate. The cost of these essential upgrades should not be borne solely by the District in which the infrastructure is located as the benefits will be realized by other Districts as well. The most efficient way to equalize distribution of these costs and benefits is to consolidate the Districts as described in this Consolidation Plan. This will also spread the risk of isolated unpredictable failures and costs over a larger district, decreasing the risk of a failure creating such a large impact in a smaller district and resulting in a more financially stable District. The Town currently operates several distinct Sewer Districts with similar but not identical rate structures. The proposed consolidation will reduce the number of Districts in the Town from seven (7) to three (3) which will greatly simplify the Town's operations. (As discussed in the MPR, the South Queensbury Sanitary Sewer District and the Reservoir Park Sanitary Sewer District are not included in this consolidation.) In addition, the cash flow analysis projected for the year 2021 described in Section 3.4 of the MPR indicates 5 that the Town's sewer budget currently operates on a slight deficit. A consistent rate structure for the Consolidated Sewer District will increase income for the Town's sewer budget, allowing the Town to reliably finance costs associated with the operation and maintenance of its sanitary sewer system and make payments to the City of Glens Falls for treatment. The Town has not increased sanitary sewer user rates since 2010 and the modified rate structures will provide a modest surplus in the sewer budget. Users within the Consolidated Sewer District will be charged a benefit tax and sewer rents similar to the rate structures in the existing Sewer Districts. Existing users within the QCSSD, Route 9 District, South Queensbury District and West Queensbury District are assigned units based on size and use of the property in order to determine their relative benefit (see Table 2 of the MPR) which is attached as Exhibit C hereto. The benefit unit assignments are used to apportion the costs of debt service across users within those Sewer Districts. The existing Tech Park and PAC Districts currently do not have any sanitary sewer debt and therefore do not utilize the benefit class assignment schedule but their infrastructure is aging and there needs to be funds collected for capital improvements. The existing benefit class assignment schedule described in Table 2 of the MPR, which is attached as Exhibit C hereto, will be used to assign benefit units to each property within the entire Consolidated Sewer District in order to levy the benefit tax. Based on information provided by the Town for the year 2020, the Consolidated Sewer District will initially contain approximately 21,507 benefit units. Existing debt for the QCSSD, Route 9 District, South Queensbury District and West Queensbury District will be apportioned among the properties included in the Consolidated Sewer District using this benefit unit assignment schedule. The benefit tax rate in 2021 based on the debt 6 retirement schedules provided by the Town is expected to be approximately $27.48 per benefit unit. Users within the Consolidated Sewer District will continue to be charged sewer rents based on water consumption. The proposed sewer rents will duplicate the following rates currently charged in the existing QCSSD: all residential users will be charged a rate of $5.50 per 1000 gallons consumed and all nonresidential users will be charged a rate of $7.00 per 1000 gallons consumed. The Greater Queensbury Consolidated Sanitary Sewer District will continue to allow for dedicated meter installs. These meters only measure the domestic water that will exclusively make it to the Town's wastewater collection system and is the meter that will calculate the gallons to be used for the sewer rents charge. The rate structure for the Consolidated Sewer District will increase income for the Town's sanitary sewer budget. While the total benefit tax income will not be altered from that currently received under the existing Sewer District rate structures, the income from sewer rents based on water consumption will increase. Residential properties throughout the Consolidated Sewer District will continue to be charged the same sewer rent, but all non-residential properties in the Consolidated Sewer District will be charged at the rate currently charged non-residential users in the existing QCSSD. This will generate an additional $1.50 per 1000 gallons consumed at these properties which will result in approximately $125,000 in additional income annually compared to the current rate structure. This increased revenue will help the Town close the existing deficit in the sanitary sewer budget and build a surplus to fund essential future sewer projects. The 7 Consolidated District needs to raise sufficient fluids to maintain and operate the District. Appendix C of the MPR includes calculations for the proposed sewer budget cash flows. Although more difficult to estimate, consolidation of the Districts and application of a uniform benefit tax rate can also be expected to result in a savings in administrative costs. The inefficiencies created by having to continuously determine how costs should be allocated will be greatly lessened. (h) Each District's Asscts, Including Real and Personal Property, and their Fair Value: G) QUEENSBURY CONSOLIDATED SANITARY SEWER DISTRICT (a) The assets of the District are valued at $1,350,591. This includes cash and receivables. (b) The tangible assets of the District are valued at $4,976,761. This includes 25 miles of sanitary sewer mains, 16 grinder pump stations 3 main lift stations, land and equipment. (ii) ROUTE 9 SANITARY SEWER DISTRICT (a) The assets of the District are valued at $985,555. This includes cash and receivables. (b) The tangible assets of the District are valued at $3,228,369. This includes approximately 50,000 linear feet of sanitary sewer mains, 2 main lift stations and land. 8 (iii) WEST QUEENSBURY SANITARY SEWER DISTRICT (a) The assets of the District are valued at $210,435. This includes cash and receivables. (b) The tangible assets of the District are valued at $2,822,115. This includes approximately 18,510 linear feet of sanitary sewer mains and sanitary sewer infrastructure consisting of a combination of low-pressure force mains, gravity sewers and work in progress. (iv) TECHNICAL PARK SANITARY SEWER DISTRICT (a) The assets of the District are valued at $19,951. This includes cash and receivables. (b) The tangible assets of the District are valued at $459,532. This includes approximately 15,000 linear feet of sanitary sewer mains. (v) PERSHING, ASHLEY& COOLIDGE SANITARY SEWER DISTRICT (a) The assets of the District are valued at $68,181. This includes cash and receivables. (b) The tangible assets of the District are valued at $12,042. This includes approximately 3,000 linear feet of sanitary sewer mains. (i) Each District's Liabilities and Indebtedness, Bonded and Otherwise, and their Fair Value: 9 (i) QUEENSBURY CONSOLIDATED SANITARY SEWER DISTRICT (a) The liabilities of the District are valued at approximately $717,555. This includes debt - $539,963 and accounts payable and accrued liabilities - $177,592.03. (ii) ROUTE 9 SANITARY SEWER DISTRICT (a) The liabilities of the District are valued at approximately $3,129,174. This includes debt - $3,094,988 and accounts payable - $34,186. (iii) WEST QUEENSBURY SANITARY SEWER DISTRICT (a) The liabilities of the District are valued at approximately $2,198,470. This includes debt- $2,196,400 and accounts payable- $2,070. (iv) TECHNICAL PARK SANITARY SEWER DISTRICT (a) The liabilities of the District are valued at $2,435 — accounts payable. This District currently does not have any sanitary sewer debt. (v) ' PERSHING, ASHLEY & COOLIDGE SANITARY SEWER DISTRICT (a) The liabilities of the District are valued at $847 — accounts payable. This District currently does not have any sanitary sewer debt. (j) Terms for Disposition of Existing Assets, Liabilities and Indebtedness of each District, Either Jointly, Separately or in Certain Defined Proportions: 10 Upon consolidation, the fiords of the existing Districts will be joined into one. Real and personal property currently owned by the Town on behalf of each of the existing Districts will be owned by the Town on behalf of the Consolidated District. Any pre-consolidation debts duly incurred and agreements entered into by any of the Districts will continue to be honored by the Consolidated District and satisfied according to their terms. (lc) Terms for the Common Administration and Uniform Enforcement of Local Laws, Ordinances, Resolutions, Orders and the Like, Within the Proposed Consolidated District, Consistent With 4769 of the Act: Local Laws, Ordinances, Resolutions and Orders affecting the Consolidated District will continue to be administered and enforced by the Town of Queensbury Code Enforcement Officer. All properties included in the Consolidated District will pay an annual benefit tax based on benefit unit assignments. Annual sewer rents will be based on each property's water consumption and billed quarterly. (1) Effective Date of Proposed Consolidation: The proposed consolidation shall take effect upon adoption of approval of a final version of this Agreement by the Town Board after compliance with the requirements of GML Article 17-A. (m) Time(s) and Place(s) for Public Hearing(s) on Proposed Consolidation Agreement: The Town Board shall meet at the Queensbury Activities Center, 742 Bay Road, Queensbury, New York, on June 21, 2021 at 7:00 p.m. to hear public comments on this 11 proposed Consolidation Agreement. This meeting may be held virtually either entirely or partially to ensure the safety of participants in light of the COVID-19 pandemic. (n) Entire Agreement: This Agreement contains the full and complete terns for consolidation of the Districts. There are no other verbal or written agreements or understandings which modify or affect the terms of this Agreement in any manner whatsoever. Any modifications or waivers to or of this Agreement must be in writing and executed by the Town Supervisor. IN WITNESS WHEREOF, to signify the Town Board's approval of all of the terms and conditions hereof, the Town Supervisor has executed this Agreement as of , 2021. TOWN OF QUEENSBURY BY: JOHN F. STROUGH, III, Supervisor 12 EXHIBIT C -Table-Benefit Class Assignment Property Description Units Class Residential A Dwelling Unit 1 acre or less 3.0 B Vacant Residential per acre 1.0 Vacant/Common area townhouse&condos B 1 up to I acre per dwelling unit 0.0 Apartment multiplier 1.0 Residential &Commercial C Exempt from hookup per acre 0.2 D 1 Landlocked/Deed restricted per acre 0.2 D2 Wetlands per acre 0.2 Commercial E Vacant land per acre 3.0 F Occupied up to 10 acres/per acre 6.0 Over 10 acres/per acre 9.0 Commercial Plus Metered Water Consumption 120 gallons per day based on annual water consumption 1.5 15