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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
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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.
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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:
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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
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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
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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
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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.
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(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
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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
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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
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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.
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(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:
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(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:
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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
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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
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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
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