Budget & Finance Committee

March 18, 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; Mark Suben, County Attorney; Dennis Whitt, County Auditor; Katrina Spicer, Secretary to County Administration; Pat O’Mara, County Treasurer; Carolyn Kennedy, Deputy Treasurer; Francis Casullo, Attorney retained to investigate Cortland County Law Department; 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 8:00 a.m.

Mr. Troy announced that late last week Jim Partigianoni, City Councilman, passed away. Mr. Troy asked that a moment of silence be taken in Mr. Partigianoni ‘s memory. The Budget & Finance Committee remained silent in the memory of Jim Partigianoni.

Mr. Price moved adoption of the minutes of the February 19, 2008 meeting; seconded by Mr. Ross. All members voting in favor; none opposed; minutes approved as printed.

PRESENTATION:

Tom Gillson – IDA/BDC – Mr. Gillson introduced himself and thanked the committee members for allowing him to attend. He explained that his reason for being in attendance was to discuss a building project in Cortlandville. He gave the committee a brief overview of the project and explained that the deadline is June for purchasing the additional piece of property needed for the project. He introduced Dave Bottar of the CNY Regional Planning & Development Board. Mr. Gillson discussed the purchase of property and the need to run utilities and sewer to the business park. He went on to explain that he has spoken with Senator Seward, Dick Tupper and Scott Schrader in regards to obtaining their assistance in the project. He explained that he discussed additional funding with them and they expressed their interest in help him out. He expressed that this last bit of help would put them over the hump needed to proceed with the project. Mr. Gillson explained that questions have been raised by the community, as to why we are building this park if we have no tenants. He stated that if we do not have a “shovel ready” business park we would not get the tenants. Mr. Gillson also explained that he has had five inquiries from site selectors since January. He added that they were inquiring about a site here in the area. He added and discussed one of the five were very interested and would have put Cortland County in their top three picks is the county had a “shovel ready” business park. He further discussed site selectors making inquiries all the time. Mr. Bottar introduced himself and discussed his history in working on this project. He added that each of the counties in this region have one major business park in each county except for Cortland County . He discussed the size of the business park and the work that has been done and the work that still needs to be done. Mr. Bottar explained the financial history of the project and stated that $2million from the EDA and $430,000 from the EPA has been committed to the project. He went on to discuss the local match necessary to proceed with this project. Mr. Bottar discussed and explained the development being a two-phase project. He added that Phase I was the northern half of the project and that would be developed first. He explained the need for land acquisition and the need to have sewer and water brought to the site. He explained that the northern half of the project would have 13 developed sites available upon complete ion. He explained that the project financing has fallen $1.6 million short. He explained that he has spoken with Senator Seward in regards to this. He added that the Senator is attempting to secure $500,000 for the project. Mr. Bottar stressed the need to have the financing in place. He explained that in Oswego County and Onondaga County the County Legislatures assisted in financing the projects. He explained that if the Legislature were to lend the money to the IDA for the project, as the lots were sold, the loan could be paid back to the county. He stressed the need for the business park in order to have prospects of new business. He explained that it may take a year or two for development to pick up at the business park and added that a more realistic time frame would be five years and a more conservative stand would be ten years. Mr. Bottar explained that with an aggressive approach to attract development it could take five to seven years to sell the sites in Phase I of the project. He discussed a marketable sale price being $20,000 to $21,000 per acre and also discussed reducing the price to $15,000 per acre. Ms. Tytler inquired if an application for Phase I was submitted to ARC. Mr. Gillson and Mr. Ross explained that an application was but at the time there were no federal funds. They went on to discuss an application being resubmitted and added that there is not enough time. Mr. Gillson explained that it is crunch time and the IDA needs to borrow funds from the county to finance this project. Mr. Bottar explained that the funds needed to be secured before the EDA would release the $2 million in funding. Ms. Price inquired as to exactly how much they are asking to borrow. Mr. Bottar explained that a total of $1.6 million is needed and added that Senator Seward is working on $500,000. Ms. Price inquired as to why the county would want to lend this money. Mr. Bottar explained that if the business park were in place, Cortland County could better compete for jobs and display that they can do business in a timely manner. He further expressed that this is a tool for economic development. Mr. Gillson expressed that Cortland County is the only one out of five counties in this region without a business park. He discussed workforce development, working with existing business owners, recruitment of new business working with elected officials and working with past projects. He added that he believes this is the most important project in the county and added that he believes this is the most important thing to work on right now. Mr. Gillson complimented and thanked Mr. Bottar for all the work he has put into this project. Mr. Gillson stated that he would need assistance from the county to finish this project up. Mr. Slowey explained that Cortland County has an abundance of land but it is not marketable. He further discussed the reason for the land to not be marketable is that it has a lack of infrastructure. He further explained that the county needs to have land on the shelf, ready to go. Ms. Price inquired as to how this business parks works with Polkville development. Mr. Slowey explained that this project is not in addition to the Polkville development and Mr. Ross added that the Polkville project is in the flood plane. Mr. Willcox inquired about how much property was retained by the current owner of the property to be purchase for Phase I. Mr. Bottar explained that about 20 acres was retained and he further discussed the negotiations, strategy, purchase price and the development of the park. Mr. Willcox inquired about the aquifer. Mr. Bottar explained that they are in compliance in regards to regulations to protect the aquifer. He also discussed the storm water management plan which has already been planned by engineers. Ms. Tytler addressed her concerns in regards to current businesses relocating to the new sites. Mr. Bottar discussed the requirement of patience by the IDA and the county in regards to this project. He explained that the IDA can not be assured that the parties would use the assets as intended. He went on to state that a full SEQR has been completed and public hearings have been held. Mr. Slowey mentioned the SEQR and a small amount of the project being required to stay green. Mr. Bottar explained that the wetlands add character to the project and could attract a different type of client to the park. Ms. Tytler inquired if the park was to be a green park. Mr. Bottar stated that there was no requirement for business to be green. Mr. Gillson expressed that they would gladly welcome a business who was interested in building a green facility but they would not require that of a developer. Ms. Tytler inquired if the design of the park opened any pockets of money from NYSERDA. Mr. Bottar explained that it may open up small pockets but not one big pot of money. Mr. Bottar explained that currently they have $2.4 million. Mr. Slowey discussed acquiring the property prior to sewer and water being installed. Mr. Gillson further discussed the funding needed to complete Phase I of the project. He expressed that $1.6 million is needed overall. He explained that Senator Seward is attempting to secure $500,000 for the project. He added that Mr. Tupper, Town Supervisor, Town of Cortlandville , will be requesting his Town Board to approve a loan of $400,000 to the IDA for this project. Mr. Schrader discussed the funding from Senator Seward and Supervisor Tupper. He added that the remaining amount to be requested of the county would be $750,000. Mr. Schrader explained that the county would be lending money to the IDA and as each parcel of land was sold the county would be paid back. He added that a project like this was developed in Montgomery County and funds were loaned by the county and the payback was completed in seven years. Mr. Schrader stressed the need for a “shovel ready” business park. Mr. Gillson explained the need for a business park here in Cortland County is to be able to compete for business. Mr. Williams inquired as where we go from here. Mr. Schrader recommended that Mr. Gillson and Mr. Bottar present this to the full Legislature at the next Legislative meeting and then bring it back to Budget & Finance Committee in April. Mr. Schrader explained that the county will know about the money from Senator Seward once the New York State Budget is passed. Mr. Bottar explained that he is reasonably confident about receiving the $500,000 from Senator Seward and the $400,000 from the Town of Cortlandville . Mr. Gillson explained that he will not stop looking for different means of funding. Ms. Price requested that Mr. Gillson and Mr. Bottar have a written brief regarding this when they present it to the full Legislature. Ms. Tytler inquired about the current status of the other four counties that have business parks like this. Mr. Bottar explained that there has been a mixed bag of results. He added that the important part of the project is that the IDA stay focused. Ms. Arnold inquired as to the benefits a company would see for coming to Cortland County . Mr. Bottar expressed that Cortland County is located between Syracuse and Ithaca and the nature area could be an asset. Ms. Arnold then inquired about the negatives. Mr. Bottar and Mr. Schrader stated that the park is not located on Interstate 81. Mr. Willcox inquired as to what the primary source for the county would be to lend this money. Mr. Schrader explained that it would be from fund balance. Mr. Whitt explained that a loan would have no material impact on the county’s finances. He added that he feels it is a terrific idea if it is structured properly. Mr. Troy expressed a thank you to Mr. Gillson and Mr. Bottar.

Mr. Williams left the meeting just after the presentation and discussion by Mr. Gillson and Mr. Bottar

DISCUSSION:

Cortland County Law Department, Fran Casullo – Mr. Casullo introduced himself and explained that he was hired to conduct a study regarding a County Law Department. He stated that he was asked to be here to answer any questions. He stated that he anticipates completing his study by the end of June or July at the very latest. He stated that this would give the Legislature a chance to review the information prior to the 2009 budget cycle. He stated that once it was announced that he was conducting this study, he received a dozen phone calls regarding input to the study. Mr. Casullo explained that he would like to investigate what is being done in other counties throughout the state. He added that he would remain sensitive to the different counties and their differences to Cortland County . Additionally, he is interested in obtaining information as to how a Law Department has been implemented in these other counties. He stated that he has spoken with a number of former County Attorneys and received their input. He stated that everyone has been gracious and supportive. He stated that he is here to answer any question from committee members. Ms. Tytler inquired as to what approach Mr. Casullo is taking; “how to create” or “should we create.” Mr. Casullo stated that he is first of all taking the approach and investigating if a County Law Department should be created and compiling a list of pros and cons in that respect. He also stated that he would like to look into how a County Law Department could be set up and what other counties have done if it is warranted that the county should create a County Law Department. Ms. Price stated that Mr. Casullo’s reputation precedes him and she 100% confidence that he would do a fine job. Mr. Casullo thanked Ms. Price and asked if anyone had any questions. He stated that he has no problem answering any and all questions and he is willing to meet with anybody in regards to this. He stated that he is willing to provide periodic updates to the committee. Mr. Suben stated that his office is open to any help Mr. Casullo may need.

BUDGET AND FINANCE COMMITTEE RESOLUTIONS:

1. Authorize Payment, Tompkins Cortland Community College (Operating Budget 2007-2008)– Mr. Willcox moved adoption; seconded by Ms. Tytler. Mr. Schrader explained that this represents sponsor distribution. He added that this is based upon the budget presented by TC3. He explained the percentage paid to TC3 and the New York State formula and methodology. He added that he does not necessarily agree with the state formula and methodology. All members present voting in favor; none opposed; resolution approved.

Mr. Troy introduced the Consent Agenda, Items 2 through 13, and asked if there were any items to be pulled for discussion. He announced that Agenda Item No. 4 has been amended and a copy has been provided to all committee members.

Ms. Tytler requested that Consent Agenda Item No. 3 be removed and acted upon separately.

Ms. Tytler moved adoption of the Consent Agenda with the exception of Agenda Item No. 3, which was removed at the request of Ms. Tytler, to be acted upon separately; seconded by Mr. Willcox.

REFERRED FROM GENERAL SERVICES:

2. Amend 2008 Budget Buildings and Grounds (Reappropriation of Emergency Generator Funds From Prior Year)

3. Authorizing Specialized Services Agreement Area Agency on Aging Feasibility Study - Removed to be acted upon separately

4. Grant Authority to Charge Fees, Establish Fee Schedule for Examination of Non-commercial Devices Department of Weights & Measures

REFERRED FROM HEALTH COMMITTEE

5. Authorize Agreements/Accept Funds Health Department/ Jacobus Center for Reproductive Health (State Grant)

REFERRED FROM HIGHWAY COMMITTEE

None

REFERRED FROM HUMAN SERVICES COMMITTEE

6. Authorize Agreement/ Amend Budget between CNY Works, Inc. and Department of E&T Grant Administration (On behalf of Cayuga-Cortland Workforce Investment Board)

7. Amend Budget Department of E&T Grant Administration WIA Incentive Award

8. Accept Grant/Amend Budget/Authorize Agreement Youth Bureau (Member Item Grant)

REFERRED FROM JUDICIARY & PUBLIC SAFETY COMMITTEE

9. Amend 2008 Budget Fire & Emergency Management (Hazard Mitigation Grant Program Project # 1650-0002 – FY’07)

10. Amend 2008 Budget Fire & Emergency Management Technical Equipment – 2006 Preparedness Grant

11. Amend 2008 Budget Fire & Emergency Management (Division of Criminal Justices Services – WMD Grant – FY’06)

REFERRED FROM PERSONNEL COMMITTEE

12. Amend Agreement/Amend Budget Cortland County Chamber of Commerce

REFERRED FROM AGRICULTURE/PLANNING/ENVIRONMENT COMMITTEE:

13. Authorize Chairman To Sign Agreement/Amend 2008 Budget Planning Department (Federal Section 5311 Transit Capital Equipment Project)

All members present voting in favor; none opposed; Consent Agenda, with the exception of Agenda Item No. 3, which was removed at the request of Ms. Tytler, was approved.

NON-CONSENT AGENDA RESOLUTIONS:

3. Authorizing Specialized Services Agreement Area Agency on Aging Feasibility Study - Ms. Tytler moved adoption; seconded by Ms. Price. Ms. Tytler inquired if when Barton & Loguidice conduct the work, which they are subcontracting to JCM Architecture, can the issue of potential storage space of voting machines be extended to include storage of other items, such as car seats. She discussed looking at the basement for storage and the possible need of a freight elevator. Mr. Schrader discussed the proposal and mentioned that it should have been attached to the resolution. He stated that he would speak to the Clerk and make sure that it is attached before session. Ms. Price inquired if an attachment to a resolution is included in the journal. Mr. Schrader stated that all attachments should be included in the journal. All members present voting in favor; none opposed; resolution approved.

DISCUSSION ITEMS:

1. Beers Presentation, Re: Property Foreclosures – County Treasurer – Mr. O’Mara explained that he has sent a letter out regarding these services and has not received a response back. He explained that this is their busy time of the year. He explained that he attended a state meeting in Albany where he inquired to see how other counties handled these issues and this company came highly recommended. He explained that what he is proposing would take all the work regarding the foreclosures out of his office. Mr. O’Mara explained that it would cost $300 per property to process for foreclosure. He added that this cannot be done this year but can be done next year. He explained that he provided the committee with multiple documents and stated that if the members wish to take time to review these documents and have him return to the committee at a later date to discuss them, he will do that. Ms. Price expressed that the idea sounds good. She further inquired if Mr. O’Mara has thought of using any additional software to help in the Treasurer’s Office. Ms. Kennedy explained that there are funds in this year’s budget to purchase software. She further explained that next month she would be in contact with others at finance school. Mr. Suben discussed and suggested that Ms. Kennedy mention this to Mr. Casullo in regards to his study of a County Law Department. Ms. Kennedy and Mr. Suben discussed the processed involved in these foreclosures being cumbersome. Mr. Suben expressed his concerns that the price may be too good to be true. Committee members and Mr. O’Mara discussed this. Mr. Schrader explained that some foreclosures are less cumbersome and others are more cumbersome, he added that the price likely evens out. Ms. Price applauded Mr. O’Mara for his attempts to modernize the Treasurer’s Office. Mr. Schrader added that if the $300 is spent in regards to the foreclosure it can be charged on the tax bill. He further stated that if it is not spent it is more difficult to prove the amount of time and money spent in regards to processing a foreclosure.

County Audit Report – Mr. Whitt explained that members of his department were in the middle of work closing out last year and that the work to prepare for the Single Audit is coming. He explained that the independent auditor would be here to begin his work on the Single Audit in the middle of April. Mr. Whitt added that as of January, other than routine issues, he had identified no significant audit related problems. He stated that the transition in the Treasurer's Office has gone well. Mr. Whitt discussed this being a typical busy part of the year for the staff of the audit department. He further explained that the County is going into its third year of the contract with Richard McNeilly for "independent audit services" known as the Single Audit. He added that Mr. McNeilly had informed him that his independent audit will begin in mid-April and added that this "independent audit" is required by federal law. Mr. Whitt explained the B & F Committee would need to establish a procedure for their review of the Single Audit. He explained that the Budget & Finance Committee could sit as the Audit Committee or they could establish a Subcommittee to sit as the Audit Committee. He explained that this decision had in the past been made by the Chairman of the Budget & Finance Committee. Mr. Whitt went on to discuss the 2007 tax bill received from the City of Cortland after the purchase of the Moose property. He explained that he had monitored the transaction from the beginning had had no evidence that the deed had been filed. When the tax bill was received for payment he reviewed the record and found that it had not been filed as of February 12, 2008. He went to the office of the county attorney to review the original file folder. He discovered that the original deed for the Moose property was in the file folder and had never filed with the County Clerk . He explained he had approved a $271,000 payment and a check had been cut for $271,000 on October 9, 2007 and cashed the same day. He explained that Mr. Suben promptly filed the deed once the original was discovered. Mr. Whitt processed the tax bill payment. Mr. Whitt expressed that the payment was then returned to the County with $210 penalty added for late payment. Mr. Willcox inquired if we owned something once the check was cashed. Mr. Whitt explained that the check was cashed the same day and he was under the impression that the county owned the property. Mr. Suben explained that the county owned the property on October 9, 2007. Mr. Suben added that once it was discover that the deed had not been filed, his office promptly filed it. He discussed checking for liens on the property and further discussed the tax status of the property being changed to "exempt" as of September 1^st. Mr. Whitt explained that he was unable to pay the tax bill without the proper paper work being completed. Mr. Suben explained that the City of Cortland has been very courteous to us. Ms. Tytler suggested just paying the tax bill and being done with it. Committee members discussed property needing to be purchased prior to September 1^st. to obtain the tax-exempt status. Ms. Tytler addressed concerns with the purchase of the DMV Property and other property being timely. The consensus of the Budget & Finance Committee was to authorize the processing of the tax bill payment including the penalty for payment. No objection to this was voiced.

3. Reject Highway Bid, Dwyer Park Pavilion, Second Floor Porch and Open Stair Framing Repairs, Highway Department (resolution approved by Highway Committee on March 11, 2008) – Mr. Troy stated that questions has arisen from the Highway Committee meeting in regards to the Reject Highway Bid, Dwyer Park Pavilion, Second Floor Porch and Open Stair Framing Repairs, Highway Department, resolution. He added that the Highway Department went out to bid on this project and now is planning on doing the work in-house. Mr. Schrader explained that the facility was citied for inadequate load provisions on the porch. He added that a study was conducted in regards to what is needed to bring the facility up to code. He stated that an estimate of the work needed to be done was $75,000. Mr. Schrader further explained that the Highway Department sent this out to bid and only received one bid for the project for $300,000. He explained that the department looked at the project and has decided that the work can be done in-house for $75,000 and therefore have rejected the bid.

Ms. Arnold stated that the Town of Cuyler fire Department was notified by the Election Commissioners that the Fire Department would be used for upcoming elections. She explained that the Town of Cuyler would like a certificate of insurance. Mr. Schrader and Mr. Suben discussed providing them with a certificate of insurance and further discussed them still being liable to a point

Ms. Tytler made a motion to adjourn the meeting. Mr. Troy adjourned the meeting at 9:36 a.m.