DRAFT
ESSEX TOWN BOARD
Special Meeting
June 14, 2012
7:00 p.m.
Supervisor Boisen opened the meeting at 7:00 p.m.
Present: Sharon Boisen Supervisor
Harold MacDougal Councilman
Claire LaPine Councilwoman
Dr. James LaForest Councilman
Mark Wrisley Councilman
Also Present: Catherine DeWolff Town Clerk
Guests: Jim Dougan, Reg Bedell, Fire Commissioners of District #1: Frank Walls, Barbara Kunzi, Kristin Kimball, Dianne Lansing, and 5Craig Jackson
Supervisor Boisen opened the Special Meeting at 7:00 p.m. The purpose of the meeting is to discuss the contract/easement agreement between the Town of Essex and Fire District #1 for the testing of and placement of wells on the Fire District’s property. There was a discussion between the Town Board and Fire Commissioners present from District #1 about signing the contract. The Fire Commissioners did not like the 10,000 gallon limit of tap water initially presented in the contract and were agreeable to the contract as presented except for the 10,000 limit.
Jim Dougan from AES described that a better figure might be 100,000 per year based on the usage of a single family home.
There was a discussion of a scenario of a state of emergency and if 100,000 per year would be enough in that type of situation.
It was agreed between the Town Board and the Fire Commissioners of Fire District #1 that the 100,000 gallons of free tap water per year added to the contract was sufficient.
Supervisor Boisen suggested that the Fire Commissioners pass a resolution accepting the contract. The Fire Commissions questioned whether the meeting was posted. Supervisor Boisen responded in the affirmative and that the notice made clear that both Boards were meeting.
Resolution by the Fire Commissioners of Fire District #1 Accepting the Contract with the Town of Essex for Wells.
On a motion by District 1 Fire Commissioner Craig Jackson, seconded by Commissioner Dianne Lansing, the resolution is ADOPTED by unanimous vote of the Fire Commissioners of District one: Yes-5 Walls, Kimball, Kunzi, Lansing, Jackson No-0
Resolved that the Fire Commissioners of District #1 in the Town of Essex accept the contract/lease agreement as presented by the Town of Essex including the change of 10,000 (ten thousand) gallons to 100,000 (one hundred thousand) per year of free tap water.
Resolution 101 – 2012
Resolution Accepting the Contract for Wells with Fire District #1
The Supervisor called for a resolution to accept the contract with Fire District #1 and change the wording to say 100,000 gallons of free tap water per year. So moved by Councilman Harold MacDougal, seconded by Councilman James LaForest, as well as authorizing the Supervisor to sign the contract with Fire District #1 the resolution is ADOPTED: Yes-5 LaPine, MacDougal, LaForest, Wrisley, Boisen No-0
Resolved that the Town of Essex has negotiated in good faith with and has agreed and accepted the contract with Fire District #1 for wells as amended to 100,000 gallons of tap water per year and which is made part of these minutes.
Frank Walls, Chairman of the Fire Commissioners of District #1 told Jim Dougan of AESNE that when the contractors are hired to do the work, the Commissioners would like a written contract with the contractors. Mr. Dougan agreed that they should have a clear contract.
Attorney Reg Bedell brought up the question of what would happen if the Fire Dept. moved from that location, would they still be entitled to the free water and if the new owner of the property would also be entitled to free water. There was a discussion of whether the contract went with the Fire District’s property or with the Commissioners and Department who could sell the land and building and move to another location. There was a discussion of easements on the property. Reg Bedell suggested that those clarifications should be made part of the contract. Frank Walls said that as long as the Fire District moved within the Water District, they should get the free water. Councilman Mark Wrisley stated that if the Fire District dissolves, the taxpayers paid for that, it would have to come to the Town Board. It would be a new contract.
Supervisor Boisen told the Town Board that we are agreeing to this now and what happens will be considered at that time. Both Boards agreed.
The Supervisor clarified with Jim Dougan that all four potential wells would be on the Fire District property. Mr. Dougan responded, yes. There was a discussion of the 200’ circumference of well protection. Mr. Walls asked if that was just a buffer zone for the wells. Supervisor Boisen said yes, there has to be a 200’ circumference from the septic system.
With no further discussion, the Supervisor thanked the Fire Commissioners for coming and resolving the contract issues. The Fire Commissioners left the meeting at 7:45 p.m.
Supervisor Boisen advised the Town Board that they needed to discuss wells further.
Jim Dougan of AES said that the Fire District had a poor contract with the contractors while they were on their property during the sewer project; however, it was not AES’s fault. They, the Fire Commissioners, need to negotiate a good contract next time.
Supervisor Boisen relayed that she has spoken to Bond Council and we need a resolution for $75,000 (+/-) to borrow from the General Fund to pay for the test wells as finance law requires it.
Councilman LaForest queried that we want a resolution for an amount that may or may not be the amount we need for the test wells?
The Supervisor advised the Board that we passed the Resolution of Intent for the $2.9 M. We need to transfer money from one account to another to get the process going. The $75,000 figure should be enough to get that process started.
Resolution 102 – 2012
Resolution Authorizing the Supervisor to Transfer $75,000 from the General Fund to the Water Capital Project Fund for the test wells
RESOLUTION 102 – 2012
RESOLUTION OF INTENT REGARDING THE TEMPORARY EXPENDITURE OF GENERAL FUND MONIES PRIOR TO THE PROPOSED SALE AND ISSUANCE OF GENERAL OBLIGATION BONDS AND/OR NOTES OF THE TOWN OF ESSEX, ESSEX COUNTY, NEW YORK, IN THE AGGREGATE PRINCIPAL AMOUNT NOT EXCEEDING $75,000 FOR THE INVESTIGATION OF CONDITIONS IN CONNECTION WITH AN INCREASE AND IMPROVEMENT OF THE FACILITIES OF WATER DISTRICT NO 1, AS EXTENDED IN AND FOR SAID TOWN.
WHEREAS, the Town of Essex, Essex County, New York (the -Town-), has the power and authority to issue general obligation bonds of the Town for the purpose of, among other things, paying the cost of the construction of a new well-based water supply system, including the installation of a water main/lateral together with water transmission lines, including original furnishings, equipment, machinery, apparatus, appurtenances, and incidental improvements and expenses in connection therewith, pursuant to the provisions of the Local Finance Law of the State of New York (the -Act-); and
WHEREAS, the Board of the Town is considering to proceed under the provisions of the Act to authorize, sell and issue its general obligation bonds and/or notes in anticipation thereof, to pay a portion of the cost of said purpose relating to investigation of conditions prior to determination of the water supply sites or sites, subject to the terms and conditions to be set forth in one or more bond resolutions in an aggregate principal new money amount expected at this time not to exceed $2,983,957 to be adopted thereafter in accordance with requirements of the Act; and
WHEREAS, the Internal Revenue Code of 1986, as amended, and the United States Treasury Department regulations promulgated there under (together, the -Code-) require that an issuer who intends to reimburse itself for monies to be advanced and expended for a capital project from the proceeds of a debt obligation of the issuer, adopt a declaration of official intent to so reimburse not later than sixty days after the payment of any such original expenditures paid with such advanced monies; and
WHEREAS, the Code provides that such declaration may be made in the form of a resolution of the issuer;
NOW, THEREFORE, BE IT RESOLVED, by the Board of the Town of Essex, Essex
County, New York, as follows:
Section 1.
(a)
The Town Board of the Town hereby finds and determines:
By virtue of the Act, the Town has been vested with all powers necessary and convenient to carry out and effectuate the purposes and provisions of the Act and to exercise all powers granted to it under the Act.
(b) It is the intent of the Town to authorize, sell and issue its general obligation bonds and/or notes in the aggregate new money principal amount presented not to exceed $2,983,957 (the -Bonds- and the -Notes-) for the purpose of paying the cost of the investigation of the water supply conditions in connection with an increase and improvement of the facilities of Water District No. 1, as extended (the -Project-), pursuant to the provisions of the Act.
(c) It is expected that under Section 149(e) of the Code, interest on the Bonds and/or Notes will not be includable in gross income for federal income tax purposes.
(d) In anticipation of the issuance of the Bonds and/or Notes, the County hereby states its intention to reimburse general fund monies of the County heretofore and hereafter expended in an amount not to exceed $75,000 in connection with the Project through the issuance of the Bonds and/or Notes, such reimbursement allocations to be made not later than eighteen months after the date the original expenditure is paid and such expenditure of general fund monies is hereby authorized pursuant to resolutions of this Town Board authorizing said Project.
Section 2. A copy of this resolution shall be placed on file in the office of the Town Clerk where the same shall be available for inspection during business hours.
Section 3. This resolution shall take effect immediately.
The adoption of the foregoing resolution was duly put to a vote on roll call, which resulted as follows:
Supervisor Sharon Boisen VOTING Yes
Councilwoman Claire LaPine VOTING Yes
Councilman James LaForest VOTING Yes
Councilman Harold MacDougal VOTING Yes
Councilman Mark Wrisley VOTING Yes
This resolution was thereupon declared duly adopted.
* * * * *
There was a discussion that a resolution was needed authorizing AESNE to proceed with the RFP for the test wells.
Resolution 103 – 2012
Resolution Authorizing AESNE to proceed with the Request for Proposals for the Test Wells at the Fire District #1 property.
On a motion by Councilman Mark Wrisley, seconded by Councilwoman Claire LaPine, the resolution is ADOPTED: Yes-5 LaPine, MacDougal, LaForest, Wrisley, Boisen No-0
Resolved that the Town Board authorizes AESNE to proceed on their behalf with the request for proposals for the well drillers.
Dr. LaForest asked Jim Dougan if we had specs for the job. Mr. Dougan responded in the affirmative and that they will be getting a well driller very soon and the specs will eliminate some applicants. There was a discussion of the depth of the wells necessary which would preclude some drillers from the job. Further, he advised that AESNE will start developing the plans right away and be ready to go when the Town is ready.
The Supervisor brought up the rates for water. She advised that from the years 2003 to 2006 the debt service was billed ad valorem on the tax bills. She advised that we are researching this to see if this must occur and if so, we will make it right for 2013. Supervisor Boisen explained further that we cannot find when it changed to a billing procedure, but it is a project we are working on. There was a discussion of the rights of the APA.
With nothing further to come before the Essex Town Board, the Supervisor adjourned the meeting at 8:00 p.m.
Catherine DeWolff, Town Clerk
