Budget & Finance Committee

January 17, 2008 – 10:00 am

DRAFT MINUTES

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

Others present: John Daniels, Chairman, County Legislature; Scott Schrader, County Administrator; Mark Suben, County Attorney; Katrina Spicer, Secretary to County Administration; Pat O’Mara, County Treasurer; Carolyn Kennedy, Deputy Treasurer; Eric Mulvihill, WXHC; Evan Geibel, Cortland Standard; Jim Dempsey, Cortland County Convention and Visitors Bureau; Sue Morgan, Clerk of the Legislature; and John Carroll

Mr. Troy called the meeting to order at 10:02 a.m.

Mr. Troy had all members introduce themselves and introduced Mr. Dempsey to the Committee. He explained that Mr. Dempsey represents the Cortland County Convention and Visitors Bureau.

Mr. Troy announced that he has requested the County Auditor to provide a report monthly to the Budget & Finance Committee beginning next month.

Mr. Troy further announced that he would like to formally invite all Legislators and the Public to attend any of the Budget & Finance Committee meetings.

Ms. Tytler moved adoption of the minutes of the December 13, 2007 meeting; seconded by Mr. Willcox. All members voting in favor; none opposed; minutes approved as printed.

Ms. Price moved adoption of the minutes of the December 6, 2007 meeting; seconded by Ms. Tytler. All members voting in favor; none opposed; minutes approved as corrected.

Ms. Price moved adoption of the minutes of the December 6, 2007 meeting with the City of Cortland; seconded by Mr. Willcox. All members voting in favor; none opposed; minutes approved as printed.

Mr. Troy announced that he had selected Mr. Willcox as his Vice Chair. Ms. Tytler explained that historically the Majority Leader is the Chair for Budget & Finance Committee. She explained that Ms. Price relinquished that role and remained Chair of Human Services Committee. She further stated that the Cortland County Legislature’s Rules of Order state that the Committee Chairs appoint their Vice Chairs. Ms. Tytler also explained that Chairman Daniels promised the Vice Chair seat to Mr. Willcox and he did not have the authority to do so. She expressed to Mr. Troy that she is extremely disappointed that he was put in this position. Mr. Willcox stated that he did not realize that this was such a political issue. He added that Ms. Price is the wife of the Cortland County Sheriff. He went on to explain that the Sheriff’s Department has $.75 million budget and she would need to recuse herself from voting on issues related to that. Mr. Willcox went on to state that he was still interested in being Vice Chair of the Budget & Finance Committee. Ms. Price expressed that it is Mr. Troy’s right to choose his Vice Chair and she respects that. She did add that she was disappointed in this situation and stated that no one said politics was going to be fun. Ms. Tytler stated that if this is the way to steer a ship, she is very disappointed. Mr. Troy stated the he feels Mr. Willcox will make an excellent Vice Chair of the Budget & Finance Committee.

BUDGET AND FINANCE COMMITTEE RESOLUTIONS:

1. Authorize Agreement, Cortland County/Cortland County Chamber of Commerce – Ms. Price moved adoption; seconded by Ms. Tytler. Mr. Schrader explained that for the last few years an agreement has been authorized with the Chamber of Commerce regarding the Fourth of July Fireworks at Little York Lake. He further stated that this continues the relationship with the Chamber of Commerce. He explained that a letter has been received from the Chamber of Commerce requesting additional funding but at this time this is the amount budgeted. Mr. Ross inquired if this money covers the costs. Mr. Schrader stated that it does not and added that the Chamber of Commerce requests additional funding from area businesses. Mr. Ross expressed that the Fireworks celebration should be bigger because this is the Bicentennial. Mr. Schrader stated that he would discuss this with the Chamber of Commerce. Ms. Tytler explained that the IDA/BDC reports to this committee and stated that the new director has expressed that marketing is not his strong point. She stated that she would like the Chamber and IDA/BDC to assist each other. Mr. Willcox inquired about the exact day that the Fireworks would be displayed on. Mr. Schrader stated that historically it has been on July 3^rd. Committee members expressed their desire to have Mr. Boylan, County Historian, involved in the celebration this year due to the Bicentennial Celebration. All members present voting in favor; none opposed; resolution approved.

2. Authorize Agreement, Cortland County/Finger Lakes Library Association – Ms. Price moved adoption; seconded by Mr. Willcox. Mr. Troy asked if this was the standard annual amount. Mr. Schrader stated that it was. All members present voting in favor; none opposed; resolution approved.

3. Authorize Agreement, Cortland County/Cortland County Convention and Visitors Bureau For Provision and Public Benefit Services For Promotion and Publicity – Mr. Ross moved adoption; seconded by Ms. Tytler. Mr. Troy introduced Mr. Dempsey and explained that he is here to answer any questions anyone may have. He added that these are funds collected from occupancy tax to promote tourism. Mr. Troy explained that $370,000 is the requested amount from Cortland County Convention and Visitors Bureau and added that $350,000 was the amount budgeted in the County Budget. Mr. Schrader explained that in March of this year the 2007 Occupancy Tax funds would be audited and if there are additional funds available the county may be able to fund the additional $20,000 to the Cortland County Convention and Visitors Bureau. Mr. Williams requested that the word Council be replaced with the word Bureau in paragraphs 2, 3, 5 & 6. The consensus of the Budget & Finance Committee was to make this change. Ms. Price inquired about funding for Cincinnatus. Mr. Dempsey explained that they did not request any funds this year because they had funding left from last year. Committee members discussed funding requests Countywide. Ms. Tytler inquired about the Chillabration in March. Mr. Dempsey explained that he has spoken with representatives from the Chillabration regarding this. Committee members expressed their interest in having a winter festival in downtown Cortland. Mr. Troy stated that the Homer Winterfest is scheduled for February 8^th. Mr. Ross stated that this funding helps many organizations. Ms. Price expressed that this was the “brain child” of Jim O’Mara and added that historically this has helped for many years. Mr. Ross explained that other counties look at Cortland County and the way they distribute the funds. Mr. Dempsey expressed that he would be available in the future to present to the committee an overview of the Cortland County Convention and Visitors Bureau. All members present voting in favor; none opposed; resolution approved as amended.

4. Authorization to Bond for Highway Department Equipment, Highway Department – Ms. Tytler moved adoption; seconded by Mr. Ross. Mr. Schrader explained that this was for two pieces of highway equipment and has been approved in the overall budget. He stated that the equipment pieces are a Grader and a Loader. Ms. Tytler inquired if the highway equipment was the only thing being bonded for. Mr. Schrader explained that they probably would not be the only things. He added that he would need to have conversations with the Treasurer and Fiscal Advisor in regards to items to be bonded for. Committee members discussed additional items that may be included in the bond. Mr. Willcox inquired as to the length of time for the bond. Mr. Schrader explained that it depends on what is being bonded for. All members present voting in favor; none opposed; resolution approved.

5. Authorize Agreements, Cortland County/1890 House and Cortland County Historical Society – Ms. Price moved adoption; seconded by Mr. Ross. Mr. Schrader explained there is a miscellaneous line in the budget for $25,000 and these two entities requested the funding. He expressed that they will split the $25,000; $12,500 each. Ms. Tytler explained that there is the new Brockway Museum and funding for them needs to be considered in 2009. Mr. Ross inquired as to how much funding the Brockway Museum has received from the County. Mr. Schrader explained that they have received $15,000. Ms. Tytler stated that the past funding was to be used to establish the museum and fund like this that the 1890 House and Historical Society receive can be used for operational expenses. All members present voting in favor; none opposed; resolution approved.

Mr. Troy introduced the Consent Agenda, Items 5A through 12, and asked if there were any items to be pulled for discussion.

Ms. Tytler requested that Consent Agenda Item No. 5A be removed and acted upon separately.

Ms. Tytler moved adoption of the Consent Agenda with the exception of Agenda Item No.5A, which was removed at the request of Ms. Tytler, to be acted upon separately; seconded by Mr. Williams.

CONSENT AGENDA

REFERRED FROM GENERAL SERVICES:

5A. Authorize Transfer, Buildings & Grounds - Removed to be acted upon separately.

REFERRED FROM HEALTH COMMITTEE

6. Amend Budget, Mental Health Department, New York State Office of Alcohol & Substance Abuse Services

7. Amend Budget, Mental Health Department, Mental Health Association

REFERRED FROM HIGHWAY COMMITTEE

8A. Amend Budget/Transfer Funds, Highway Department, Recycling Center

8. Award Highway Equipment, Tractor Trailer Trucks, Highway Department

9. Authorize Highway Equipment, One (1) Wheel Loader, Highway Department

REFERRED FROM HUMAN SERVICES COMMITTEE

10. Amend Budget, Department of Social Services

REFERRED FROM JUDICIARY & PUBLIC SAFETY COMMITTEE

11. Authorize Agreement, Fire & Emergency Management, Satellite UHF Site, Town of Cortlandville

REFERRED FROM PERSONNEL COMMITTEE

12. Accept Funds, Bicentennial Oral History Project

All members present voting in favor; none opposed; Consent Agenda approved.

NON-CONSENT AGENDA RESOLUTIONS:

REFERRED FROM GENERAL SERVICES COMMITTEE

5A. Authorize Transfer, Buildings & Grounds – Ms. Tytler moved adoption; seconded by Mr. Williams. Ms. Tytler explained that the crows, which had nested at the Cortland County Court House, have moved to the YWCA and are currently causing crow guano problems on the playground. She further explained that the Court House has installed a stationary whaler unit to discourage the crows from staying near the Court House. She further explained that this resolution is to purchase a mobile unit to chase the crows and attempt to channel them to an area where they are acceptable. Mr. Williams expressed that if this passes then he would like to see a policy established in regards to the operation of the equipment. All members present voting in favor; none opposed; resolution approved.

DISCUSSION ITEMS:

1. Challenges in Tax Assessment – Mr. Schrader explained that he had received a requested from the City of Cortland requesting a partnership with them regarding Tax Assessment Challenges. He added that the County has a significant interest in the collection of taxes and stated that this would help ease the burden these challenges have on the City of Cortland. Mr. Schrader explained that in the past the Town of Cortlandville requested similar assistance and a resolution was drafted to put a policy in place regarding tax assessment challenges, but the resolution never made it to the floor. He again stated that the County has a significant interest regarding the impact of these challenges and discussed the possibility of a significant loss in tax revenue. Mr. Schrader explained that he has been in contact with Mr. Knickerbocker regarding this and he did tell him that he would bring it to the Budget & Finance Committee meeting. He distributed correspondence from Mr. Knickerbocker regarding this issue. He explained that the top letter expresses that the Cortland School District will also be participating. Mr. Williams inquired as to how much this will cost to participate, a worst-case scenario. Mr. Schrader explained that the letter of engagement has been included in the packet of information from Mr. Knickerbocker and estimates about $10,000 to participate. Mr. Schrader further explained that there are two properties involved in the challenges and both are resident nursing homes. He did state that the County receives approximately 1/3 of the tax revenue generated by these properties. Mr. Williams expressed that this would cost us about $10,000 but the loss could be substantial if we were to lose the challenges. Mr. Willcox expressed his concerns regarding a domino affect this may have. Mr. Schrader explained that this could cause an increase in challenges. Mr. Willcox questioned the decrease in housing values nationwide and asked if this could happen here. Mr. Schrader explained that Cortland County to some degree has been isolated in the increases and decreases in housing costs and added that he cannot say it will not happen here. Ms. Tytler stated that in the past there has been collaboration in assessment services. Mr. Schrader explained the countywide assessments have been looked at contractually and we are beginning to gear towards this. He added that Mr. Briggs is very well respected in the county and added that countywide assessments should be looked at. Mr. Willcox inquired about whom would be the attorney involved in this. Mr. Schrader explained that he believes Mr. Knickerbocker would represent the City and others involved in this, but he did add that he has not spoken with Mr. Knickerbocker specifically about this. Mr. Suben expressed that there would be no additional cost to his office to assist Mr. Knickerbocker and added that he is willing to assist. Mr. Ross made a motion to draft a resolution, Authorizing Cortland County to Participate in the Tax Assessment Challenge Issues with the City of Cortland, not to exceed the amount of $10,000 for such participation; seconded by Ms. Tytler. All members present voting in favor; none opposed; resolution approved. Mr. Schrader inquired if the Budget & Finance Committee would like him to attempt to resurrect the resolution establishing a tax assessment challenge policy. The consensus of the committee was to have Mr. Schrader attempt to resurrect the resolution.

2. Fourth Quarter Sales Tax – Mr. Schrader explained that the County Treasurer submitted Fourth Quarter Sales Tax information via e-mail. He discussed a $.5 million in surplus. He also cautioned committee members because he explained that there is an adjustment due to New York State and that is likely due next quarter. He discussed this having no impact on the 2007 Budget but it could impact the 2008 Budget. Mr. Willcox inquired if the high cost of energy was the reason for the increased taxes collected. Mr. Schrader expressed that it is likely the number one reason. Committee members discussed the County eliminating the tax on fuel. Mr. Schrader explained that he could put together a summary report and see what impact this would have a rough idea. Mr. O’Mara discussed an over estimate in 2007 by New York State and the County receiving an over payment.

3. Cortland County Jail – Mr. Williams explained that the Judiciary & Public Safety Committee would be looking at the Jail situation. He expressed that he has asked the Sheriff to put together some information for the Judiciary & Public Safety Committee to look at. He expressed that he would be keeping the Budget & Finance Committee informed about this in the future. Mr. Williams also stated New York State has announced the closing of Camp Pharsalia and he added that this might be an opportunity for the County to come up with a multi-county correctional facility. Ms. Tytler inquired as to the affects this will have on the Master Plan. Mr. Williams stated that this would establish that Cortland County needs new Jail facility. Ms. Tytler stated that she thought the Camp Pharsalia was a good one.

Conflict Attorney – Mr. Suben stated that he is conflicted out in regards to representing the County of Cortland in the Conflict Attorney matters. He explained that Cortland County Legislature created the Local Law, which created the Office of the Conflict Attorney. He stated that three local attorney challenged the Local Law. He also stated that Ron Walsh was the President of Cortland County Bar Association and at the same time he was an Assistant County Attorney and he therefore had a conflict. Mr. Suben further explained that he was the Vice President of the Cortland County Bar Association and for that reason at the time he represented the Cortland Bar Association and is in fact the Attorney of Record for the Bar Association. Mr. Suben stated that it is not the intent of the Cortland County Bar Association to sue Cortland County and further added that for his prior involvement in this he is therefore conflicted out and cannot represent Cortland County. Mr. Suben explained that his predecessor did represent the county and had also retained outside council, Mr. Berger of Auburn. He further explained that Judge Dowd is presiding over the case involving the two Cortland County Judges. He expressed that Mr. Berger was retained out of a Budget & Finance Committee meeting in October of 2007 as the result from an Executive Session at the meeting. Mr. Suben expressed that he does not know exactly was discussed during that Executive Session. He asked the Budget & Finance Committee if they felt the need to go into Executive Session at this point. He added that he is not going to discuss any strategies and does not feel there is a need to enter into Executive Session. Mr. Troy stated that he sees no need to go into Executive Session and other committee members agreed. Mr. Suben explained that Mr. Berger has represented the County one of the cases pending. He further discussed Mr. Miller, Conflict Attorney, and Mr. Dayton, Public Defender, also having cases pending. He stated that they also need representation. He further suggested the County Attorney represent any employee, under the scope of their employment. He stated that there is no reason for these cases to not be considered under the scope of the individual’s employment. Mr. Suben stated that from the information he has been given, Mr. Dayton and Mr. Miller have had no conversations with Mr. Van Donsel regarding their representation. He explained the procedure to follow when an employee is sued and the County Attorney has a conflict, being the County Attorney submits three names of suggested Attorneys representation to the employee. He further stated that the money spent on Mr. Berger for representation for one motion was $5,000. He stated that the fee scheduled Mr. Berger was retained for is $200 per hour for Mr. Berger’s services and $175 per hour for services from one of his associates. Mr. Suben stated that he believes that given the fact that there are several employees involved in this, the County should approach this differently. He explained that he recommends an Attorney from Syracuse with twenty plus years experience in Municipal Law. He stressed that he recommends this Attorney with no reservations. He explained that he has discussed fees with him and he normally charges $200 per hour and he would operate for Cortland County for $175 per hour. He explained that he does not know all the ramifications involved with these cases. He explained that an appearance before Judge Dowd is scheduled for January 25, 2008 and stressed that he has no intention to operate in any way to exclude the Legislature. He explained that he will remain involved and would notify the Court of the Legislature’s intentions. Mr. Schrader inquired as to the nature of the proceedings on January 25, 2008. Mr. Suben explained that they are in regards to a Motion to Dismiss on Standing Grounds. He stated that this motion prompted additional motions. Mr. Williams asked what happens if Judge Dowd rules “no standing.” Ms. Tytler inquired if Tom Miller had the representation that he needed. Ms. Price inquired if the Legislature wants to change representation. Mr. Schrader expressed that the prior County Attorney requested assistance in research regarding the case. He explained that Mr. Van Donsel requested this at a Judiciary & Public Safety Committee meeting and at a Budget & Finance Committee meeting. He expressed that there was no Legislative approval for Mr. Van Donsel to hire outside representation regarding this case. Mr. Suben stated that he wanted to disclose to the Legislature that Attorney Williams, one of the local Attorneys who has filed a suit against the County, rents property in Mr. Suben’s Office. Mr. Williams asked if the County was paying Mr. Hoffman. Mr. Schrader stated they were not. Ms. Arnold inquired if New York State was behind the Judges. Mr. Schrader explained that typically when a Judge is sued the Attorney General represents the Judge; he stated that is not the case in this matter. Mr. Willcox inquired if this was a money issue. Mr. Suben explained that the Cortland County Bar Association feels they are stewards of indigent defendants and added that they do not promote the use of municipal funds to represent indigent defendants. He further stated that the local Attorneys have filed a declarative lawsuit and they believe the County went about this in the wrong manner. Mr. Willcox stated that this is more of a philosophical and territorial issue. Mr. Suben stated that he would like to be given the authority to hire the individual he mentioned earlier. Mr. Willcox asked if this was a time sensitive issue. Mr. Suben explained that the next scheduled appearance before Judge Dowd is January 25, 2008. Ms. Price inquired as to any negative issues relating to this. Mr. Suben discussed Mr. Berger’s retention and his billing summary. Mr. Williams stated that Mr. Dayton and Mr. Miller must be on board with the hiring of this person. Mr. Suben expressed that he would speak with both Mr. Dayton and Mr. Miller but added that he wanted to discuss this with this committee first. Mr. Williams stated that he was in agreement with hiring this individual if Mr. Dayton and Mr. Miller were also in agreement. Mr. Willcox inquired as to what the dollar amount would be. Mr. Suben stated that he believes this is a more economical way to handle this litigation and is requesting that a cap of $10,000 be set. Ms. Tytler stated that if more funds are needed then Mr. Suben would need to come back to the Legislature for further approval. Mr. Williams stated that he would like the Chair of Budget & Finance to pull this resolution if Mr. Dayton and Mr. Miller were not on board. Mr. Suben stated that he believes Mr. Dayton and Mr. Miller will be pleased to have competent representation. Mr. Schrader added that they both would be pleased to finally discuss the merits of the case. Ms. Tytler made a motion Authorizing the Engagement of Legal Counsel for Cortland County, Cortland County Legislature, Cortland County Public Defender, Cortland County Conflict Attorney and Cortland County Administrator in the Litigation of the Actions Regarding Cortland County Local Law No. 1 of 2006 and the cost is not to exceed $10,000; seconded by Mr. Willcox. All members present voting in favor; none opposed; resolution approved.

Ms. Price announced that currently contract negotiations are taking place with TC3 Professional Administration. She stated that she is the Legislative representative to TC3. She explained that she is participating in the negotiations along with Annette Barber, Personnel Officer, and Laurie Gosse, Deputy Personnel Officer, from the Cortland County Personnel Office.

Ms. Tytler inquired as to the procedure to get this information to all Legislators prior to Legislative Session. Committee members suggested the Majority and Minority Leaders discuss it during caucus.

Mr. Williams made a motion to adjourn the meeting; seconded by Ms. Tytler. Mr. Troy adjourned the meeting at 11:38 a.m.