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)
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.