Budget & Finance Committee

April 15, 2008 – 8:00 am

DRAFT MINUTES

 

Present:                      John Troy, Chairman; Newell Willcox, Vice Chairman; Kathie Arnold, Sandy Price, Danny Ross, Carol Tytler and Tom Williams

Others present:          Scott Schrader , County Administrator; Don Spaulding, Legislator, District 6; Mark Suben, County Attorney; Dennis Whitt , County Auditor; Katrina Spicer , Secretary to County Administration; Pat O’Mara, County Treasurer; Carolyn Kennedy , Deputy Treasurer; Rob Corpora , Director of Information Technology; Jack Hess, Assistant Director of Information Technology; Tom Gillson, Cortland County IDA/BDC; Paul Slowey, Cortland County IDA/BDC; David Bottar, CNY Regional Planning & Development Board; Eric Mulvihill, WXHC; Evan Geibel, Cortland Standard; and John Carroll

Mr. Troy called the meeting to order at 8:04 a.m.

Mr. Willcox moved adoption of the minutes of the March 18, 2008 meeting; seconded by Ms. Price.  All members voting in favor; none opposed; minutes approved as printed.

BUDGET AND FINANCE COMMITTEE RESOLUTIONS:

1.                  Authorize Payment, Treasurer’s Office (Surplus Sales Tax) – Ms. Price moved adoption; seconded by Mr. Willcox.  Mr. Schrader explained that this was for additional sales tax than was budget and to authorize payment to the towns of the difference that we owe them.  All members present voting in favor; none opposed; resolution approved.

2.                  Amend Budget, Transfer to Capital Projects, Treasurer’s Office – Ms. Price moved adoption; seconded by Mr. Willcox.  Mr. Schrader explained the this resolution is to authorize the transfer of Tobacco Securitization funds to the General Fund for payments made on the South Main Street properties.  He explained further that the Tobacco Securitization funds are restricted fund balance as required by the Comptroller’s Office.  All members present voting in favor; none opposed; resolution approved.

3.                  Amend Budget, Sales Tax, Treasurer’s Office – Mr. Ross moved adoption; seconded by Ms. Price.  Mr. Schrader explained that this is to distribute the excess 2007 Sales Tax.  All members present voting in favor; none opposed; resolution approved.

4.                  Authorization of Funding Advance, Finger Lakes East Business Park Mr. Willcox moved adoption; seconded by Mr. Ross.  Mr. Gillson explained that there were a few changes he made at the request of Legislators.  He distributed a packet of information including a colored map which distinguished the Osbeck property and the Gutchess property that are involved in this project.  He also announced that he received notification from Senator Seward that the $500,000 Senator Seward was attempting to secure has been secured and will be used towards funding this project.  He stated that the remaining amount being requested from the County would be approximately $723,000.  He added that this would be in the form of a loan to be repaid as the lots are sold.  Mr. Gillson also stated that $400,000 was approved by the Cortlandville Town Board as a loan of the same type for this project.  He explained that repayment to the County and to the Town of Cortlandville will be proportionate as the lots are sold.  He pointed out an area that will become a buffer zone between Lime Hollow and the business park and stated that Lime Hollow is pleased with this.  He further discussed trails in this buffer zone.  Mr. Gillson stated that at this point the project needs to move forward because the purchase option expires in June.  He further stated that the Budget & Finance Committee are extremely important in helping this project to move forward.  Mr. Willcox inquired as to why options could not be continued on the Osbeck property.  Mr. Gillson explained that the project is not in need of a continuation.  Mr. Slowey explained that as the project gains momentum the price of the Osbeck property could increase.  Mr. Gillson discussed the access roads on the property and a small strip of land that could be used for an access road which is currently owned by Monarch.  Mr. Ross asked if the plans were to put utilities on a privately owned road.  Mr. Slowey expressed that utilities would not be put on a private road.  Committee members discussed the preliminary diagram.  Mr. Ross suggested a buffer being put in around the pond and deeding that property to Lime Hollow.  Ms. Tytler discussed a traffic light being put in.  Ms. Price added that the area is dangerous due to the high volume and high speed of traffic.  Mr. Bottar discussed plans for a traffic light to be installed.  Ms. Tytler expressed that a traffic light could be used as a marketing point.  Mr. Bottar discussed two additional lots having the potential of development.  Ms. Price expressed that she has been surveying people in the public and many are supportive of the project but have concerns.  She listed some of the concerns that have been brought to her attention:

-         was business plan done

-         have other avenues of funding been explored

-         was an environmental study conducted

-         what will the interest rate be on the loan

-         have considerations been looked at concerning this being a dusty area

Mr. Gillson explained that in regards to the dusty area, he plans on working with the neighbors in the area on that.  He also explained that in regards to other funding, they have already secured two forms of federal grants, Senator Seward is providing funding and the Town of Cortlandville is also providing funding.  He stated that this is four different sources of funding.  He further stated that the last piece of funding that is needed is what they are requesting from the County.  Mr. Bottar explained that a full environmental impact plan had been completed.  Mr. Gillson discussed the business/marketing plans.  He also discussed contacting major realtors and site selectors.  He discussed the site selectors being interested in specifics.  Mr. Bottar explained that there is a preliminary marketing plan included in the packet of information that was distributed.  Ms. Price addressed her concerns in regards to the business parks in Dryden and Endicott that have gone nowhere.  Mr. Slowey and Mr. Gillson both stated that this will be the number one priority of the IDA.  Ms. Price also addressed another concern regarding the park drawing good decent paying jobs.  Mr. Ross inquired about Phase I and an estimated property value.  Mr. Gillson stated that there is 450,000 square feet of an estimated build space a build price of $100 per square foot.  Ms. Arnold addressed a concern regarding the dust while the area is being developed.  Mr. Gillson expressed that he is interested in working with all involved.  Ms. Tytler suggested contacting Lime Hollow in regards to possibly doing some planting to mitigate the dust problem.  Additionally, Ms. Tytler stated that she would like to thank Mr. Gillson for addressing concerns she had and answering her questions.  Mr. Gillson expressed that he has discussed the “green” aspect of the project with the architect.  Mr. Willcox addressed his concerns regarding the access road and asked how certain it was that Monarch would give up the rights for that access road.  Mr. Ross discussed the amount of room needed for an access road and stated that there is not enough room otherwise.  Mr. Gillson explained that conversations have taken place with Monarch and it is in their best interest to give this strip of land up.  Mr. Suben addressed his concerns in regards to the interest rate.  He stated that he would like it stated in the documents and resolution.  Mr. Gillson discussed and explained the IDA not having the funds to pay back interest.  Mr. Schrader explained that he had distributed a very preliminary draft agreement.  He stated that he wanted to point out two items.  He stated that the first item was that the promissory note states free of interest and the details are included in the promissory note.  He added that the second item was in the agreement, section 3.1, states that if the road is not donated then the county does not lend the money.  He strongly stated that the road is imperative to the project as a whole.  Mr. Schrader stated that Monarch needs to have the deed for that strip of land transferred to the IDA.  He stressed that the project can not be marketed without an access road.  He stated that in his opinion it is imperative that the property for this road be donated or sold for an inconsequential fee to the IDA.  He added that the lending of the funds for the project should be contingent upon the acquisition of this piece of property.  Committee members discussed the possibility of the access road being elsewhere.  Mr. Schrader explained that if the access road was on Essex property, then land would need to be acquired from the Gutchess property.  Committee members discussed other option as they pertain to the access road.  Mr. Schrader explained that it is essential to have two points of access and further discussed the need for the road on the Monarch property.  Committee members discussed the lending of funds being contingent upon the property acquisition of that strip of land for the access road.  Mr. Schrader further discussed the land purchased for the business park being 127 acres from Mr. Osbeck who currently own 140 acres.  He explained that lots 1 and 28 on the maps shown, along Route 13, are being retained by Mr. Osbeck.  Mr. Schrader discussed the development of the land.  He added that the minimum average price of the property should be sold for $16,200 per acre.  He added that this price would cover the repayment of the loan from the county and from Cortlandville.  Mr. Schrader explained that he and Mr. Suben went and spoke with Mr. Armstrong yesterday, attorney for Mr. Osbeck, in regards to this property.  Mr. Suben added that the reason for their meeting with Mr. Armstrong was to bring clarity to the project.  Ms. Tytler stated that she thought $16,200 per acre was reasonable.  Mr. Bottar stated that originally they approximated the price to be $20,000 per acre.  Committee members discussed restrictive covenants being place on the land and how it can be developed, including lots 1 and 28.  Ms. Arnold made a suggestion in regards to the contingency of acquiring the land for the access road and recommended just having an agreement signed.  Committee members discussed having the access road elsewhere.  Mr. Schrader stated that he strongly recommends not lending the county funds unless the property for the access road is secured.  Mr. Slowey and Mr. Schrader discussed whether or not business should be conducted privately or publically in regards to this project.  Mr. Schrader stated that things should be discussed publically and Mr. Slowey thought that they should be done privately.  Mr. Williams inquired about how the Town of Cortlandville would be paid back.  Mr. Gillson explained that the Town of Cortlandville and Cortland County will be paid proportionately as lots are sold.  Ms. Tytler expressed that it is now April and this project needs to have closings by June, and with all due respect to Mr. Schrader, she stated that she is concerned about the time and is putting good faith in the project; she will support the project without the contingency regarding the access road in the resolution.  Mr. Willcox state that Mr. Schrader has gained wisdom from the South Main Street property acquisition.  Mr. Troy, Ms. Arnold, Ms. Price, Ms. Tytler and Mr. Williams voted in favor; Mr. Willcox and Mr. Ross were opposed; resolution approved.  Mr. Williams suggested gaining access from Lime Hollow since Lime Hollow is contiguous.

Mr. Troy announced that all members voted in favor except for Mr. Willcox and Mr. Ross.  Ms. Price commented that she liked how the chairman of the committee announced the voting.  She thanked Mr. Troy. 

Mr. Troy introduced the Consent Agenda, Items 5 through 15, and asked if there were any items to be pulled for discussion.

Ms. Tytler moved adoption of the Consent Agenda with no exceptions seconded by Ms. Price.

REFERRED FROM GENERAL SERVICES:

5.                  Authorizing Specialized Services Agreement Department of Motor Vehicles

Schematic Design

6.                  Award Information Technology RFP Amend Budget Outside Plant Fiber Optic Infrastructure Information Technology

REFERRED FROM HEALTH COMMITTEE

7.                  Authorize Agreements/Accept Funds Health Department/Administration Cancer Services Program

8.                  Amend 2008 Budget Health Department/Nursing Division (Professional Services/Nursing Fees)

9.                  Amend Budget Mental Health Department (Catholic Charities)

REFERRED FROM HIGHWAY COMMITTEE

10.              Authorize Project and Accept NY State Aviation Grant to Design and Construct Airport Parking Lot Security Lighting during 2008 Cortland County Airport Highway Department

11.              Award Highway Equipment – One (1) Hydraulic Detachable Gooseneck Trailer Highway Department

REFERRED FROM HUMAN SERVICES COMMITTEE

12.              Abolish/Create Area Agency on Aging Temporary Part-Time Secretary I/Permanent Part-Time Secretary I

REFERRED FROM JUDICIARY & PUBLIC SAFETY COMMITTEE

None

REFERRED FROM PERSONNEL COMMITTEE

None

REFERRED FROM AGRICULTURE/PLANNING/ENVIRONMENT COMMITTEE:

13.              Amend 2008 Budget Planning Department Snowmobile Trail Development and Maintenance Grant

14.              Amend 2008 Budget Planning Department (5311 STOA Program)

15.              Amend 2008 Budget (Reappropriation of Drainage Study Along Otter Creek at State Route 281 Funds)

All members present voting in favor; none opposed; Consent Agenda, with no exceptions was approved.

DISCUSSION ITEMS:

County Audit Report – Mr. Whitt expressed that he has nothing different from last month to report.  He added that Ric McNeilly will be coming in to complete the 2007 Audit.  He discussed how the committee can approach their review of the audit.  Ms. Price suggested that the Budget & Finance Committee act as the Audit Committee to review the 2007 Audit when it becomes available, as was done in past years.  The consensus of the Budget & Finance Committee as a whole would be reviewing the 2007 Audit as the Audit Committee.  Mr. Whitt explained that Mr. McNeilly will come in and discuss his findings with the committee.  Mr. Whitt further discussed the Finger Lakes East Business Park and expressed that the county is good to go with the funding for the project.  He added that his only concern is that the language is in the appropriate documents that clearly state this is a loan and not a gift.  He further discussed the project. 

Ms. Price asked Mr. O’Mara if there was anything the committee could do to assist in the Treasurer’s Office.  Ms. Kennedy expressed that the office is in need of new software and that has been budgeted for.  She explained that she and Mr. O’Mara will be attending finance school later in the month and she would like to speak to people there to obtain their input on particular software before purchasing any.  Mr. Price and Mr. Troy requested that they let the committee know of any problems so that the committee can help. 

Mr. Ross requested a copy of the Sales Tax Report.

Ms. Arnold explained that she had toured the Cortland Waste Water Treatment Plant and found it very informative.  She urged other Legislators to also take the tour.  She stated that Bruce Adams did a wonderful job and he will be doing another tour on April 19, 2008 at 10:30.  She invited all Legislators to attend.  Mr. Troy agreed and also encouraged others to go on a tour. 

Mr. Williams made a motion to adjourn the meeting.  Mr. Troy adjourned the meeting at 9:04 a.m.

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