Onondaga County Legislature

DEBORAH L. MATURO J. RYAN McMAHON, II KATHERINE FRENCH Clerk Chairman Deputy Clerk

401 Montgomery Street Court House Room 407 Syracuse, New York 13202 Phone: 315.435.2070 Fax: 315.435.8434

www.ongov.net

WAYS AND MEANS COMMITTEE MINUTES - April 27, 2015

DAVID KNAPP, CHAIRMAN MEMBERS PRESENT: Mr. Jordan, Mr. Holmquist, Mr. Kilmartin, Mrs. Ervin, *Ms. Williams ALSO PRESENT: Chairman McMahon, see also attached list. Chairman Knapp called the meeting to order at 8:55 a.m. A motion was made by Mrs. Ervin, seconded by Mr. Jordan, to waive the reading of the minutes of the proceedings of the previous committee. Passed unanimously; MOTION CARRIED. A motion was made by Mr. Kilmartin, seconded by Mrs. Ervin, to approve the minutes of the proceedings of the previous committee. Passed unanimously; MOTION CARRIED.

CONSENT AGENDA 1. PARKS AND RECREATION: a. Amending the 2015 County Budget to Accept Grant Funds and to Make Such Funds Available for use in

Support of the Skӓ·Noñh–Great Law of Peace Center ($65,000) 2. WATER ENVIRONMENT PROTECTION: a. Authorizing the County of Onondaga to Enter into an Intermunicipal Agreement with the City of Syracuse

for the Implementation of Green Infrastructure to Mitigate Stormwater Runoff and Combined Sewer Overflows along CSO 052

b. Authorizing the County of Onondaga to Enter into an Intermunicipal Agreement with the City of Syracuse for the CSO 061 Sewer Separation Project ($280,000)

A motion was made by Mr. Kilmartin, seconded by Ms. Williams, to approve the items on the consent agenda. Passed unanimously; MOTION CARRIED.

REGULAR AGENDA

1. ONONDAGA COMMUNITY COLLEGE: a. Calling a Public Hearing on the Tentative 2015-2016 Budget of the Onondaga Community College In answer to Chairman Knapp, Mrs. Maturo stated that the public hearing will be held at 9:00 a.m. on May 26th. A motion was made by Mr. Kilmartin, seconded by Mrs. Ervin, to approve this item. Passed unanimously; MOTION CARRIED. 2. TRANSPORTATION: Brian Donnelly, Commissioner a. Amending the 2015 County Budget to Fund in the First Instance 100% of the Federal and State

Aid Eligible Costs at a Maximum Amount of $3,040,000 for the Construction and Construction Inspection Phases of Various Federally Aided Local Projects and Authorizing the County Executive to Enter into Agreements to Implement the Intent of this Resolution ($3,040,000)

Construction phase for South Bay Road and Old Liverpool Road safety Project

Eligible for 80% federal funding and 15% state funding; 5% local cost

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 2

A motion was made by Ms. Williams, seconded by Mr. Kilmartin, to approve this item. Passed unanimously; MOTION CARRIED. b. Amending the 2015 County Budget to Fund in the First Instance 100% of the Federal Aid Eligible

Costs at a Maximum Amount of $1,684,000 for the Design (Scoping I-VI) and Right-of-Way Incidentals of Various Federally Aided Local Projects and Authorizing the County Executive to Enter into Agreements to Implement the Intent of this Resolution ($1,684,000)

Design portion for a number of projects

Eligible for 80% federal fund; design not eligible for state funding

A motion was made by Mrs. Ervin, seconded by Mr. Jordan, to approve this item. Passed unanimously; MOTION CARRIED. c. A Resolution Authorizing the Reconstruction and Construction of Improvements to Various

Highways in and for the County of Onondaga, New York, at a Maximum Estimated Cost of $5,960,000, and Authorizing the Issuance of $5,960,000 Bonds of Said County to Pay the Cost Thereof ($5,960,000)

Mr. Donnelly discussed items 2c and 2d together. Both are bond resolutions

Separate bonding, as they have different periods of useful life

Both correspond to the 2015 work plan – demonstrated what the highway work plan will be for the coming year

Operating cash and bonded funds are exactly the same as 2014 - $1.5 million form operating; $6.8 million from bonding; plan relatively the same

New this year: o Initiated a sign replacement project - $200k; change in national and state amendment to the manual for

uniform traffic control devices – highway signs must be brought up to a certain level of reflectivity Approx. 17,000 sign locations on county roads; about 22,000 signs Phase 1 – consultant will shoot an image of the sign and report on the level of reflectivity – will know

how many signs need replacing In relatively good shape--have always used the highest grade of diamond sheeting paper for signs The number to be replaced will be put in the work plan for the next 3 years

o Bituminous surface treatment – typically slurry seal – all cold mix roads have to be sealed once paved – need another treatment layer every 5-7 years Slurry seal hasn’t held up well in last few years Experimented last year with using oil & stone instead of slurry seal--held up much better with plowing Will be doing more oil & stone on cold mix roads and more miles than in the past – normally do between

25-30 -- this year will be 64 miles Worthwhile invested – hold those roads and hopefully won’t see a level of surface deterioration

Federal aid program at $11.1 million – up from $4 million last year – basic difference is going from design cycle to a construction cycle

Mr. May asked if the term of 15 years on the road work is customary. Mr. Donnelly explained that is the useful life assigned by bond counsel. Mr. May asked if the road are touched more than every 15 years. Mr. Donnelly said that it depends on the type of road, condition, type of treatment. This is capital construction – they don’t do a lot of maintenance on the roads as part of the operating budget. Chairman Knapp noted that the miles are a similar number to last year regarding dollars. He asked if dollars are stretched a little further with oil being a little lower. Mr. Donnelly said that the price of liquid asphalt is a little lower than last year. Last year they budgeted $275k; budgeting $265k this year. They are not seeing liquid asphalt drop proportionately the same as regular crude oil has dropped. There is not as much of a domestic holding of liquid asphalt, so prices have stayed higher than hoped. They are coming down and hope they continue to trend down over the summer. A motion was made by Mr. Jordan, seconded by Ms. Williams, to approve this item. Passed unanimously; MOTION CARRIED.

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 3

d. Authorizing the Reconstruction and Construction of Improvements to Various Bridges in and for

the County of Onondaga, New York, at a Maximum Estimated Cost of $840,000, and Authorizing the Issuance of $840,000 Bonds of Said County to Pay the Cost Thereof ($840,000)

Bridge bond - $840,000

A motion was made by Mr. Jordan, seconded by Ms. Williams, to approve this item. Passed unanimously; MOTION CARRIED. 3. FINANCE: Steve Morgan, CFO a. Approving and Directing the Correction of Certain Errors on Tax Bills

Manlius – condo unit - property double billed for sewer unit charge

A motion was made by Mr. Kilmartin, seconded by Mr. May, to approve this item. Passed unanimously; MOTION CARRIED. b. Refunding Bond Resolution – Authorizing the Issuance Pursuant to Section 90.10 of the Local

Finance Law of Refunding Bonds of the County of Onondaga, New York, to be Designated Substantially “Public Improvement Refunding (Serial) Bonds”, and Providing for Other Matters in Relation Thereto and the Payment of the Bonds to be Refunded Thereby

Refund a portion of 2007 bonds

Interest rate market is attractive – reviewed annually with fiscal advisors

Competitive process – Roosevelt & Cross won the bid to purchase bonds

Will have a net present value savings of $766k, roughly $864k of budget savings – will be spread over 10-yr period

Will continue to be aggressive and refund as much as they can on annual basis

In answer to Mr. May, Mr. Morgan said that there are bond issuance costs – bond counsel, underwriting, fiscal advisors – approximately $20,000. In answer to Mr. Kilmartin, Mr. Morgan said that right now the true interest cost is a little over 2%. Mr. Morgan said that they will be going out to market in May; rating agencies are coming here this year – will be setting up a tour and show economic development projects in county. A motion was made by Mr. Jordan, seconded by Ms. Ervin, to approve this item. Passed unanimously; MOTION CARRIED. 4. EMERGENCY COMMUNICATIONS: Bill Bleyle, Commissioner a. Amending the 2015 Budget to Accept Money Received as Reimbursement for Rebanding Costs

Associated with Relocating Public Safety Radio Communication Systems to Different Frequencies ($314,044)

Accept monies as a result of settlement with Verizon Wireless and T-Mobile

2006 – built out new microwave system – FCC ordered that everyone migrate off frequencies and if wireless companies wanted them during a period of time, they had to negotiate with incumbents on the frequencies and reimburse them for expenses associated with moving

Will put monies into microwave maintenance account to reimburse FCC attorney, radio consultant, & CTIA (agency that negotiates between incumbents and wireless providers) - $37,500

Balance, $276,500, would go into microwave project account to reduce principal on bond

Accepting settlement of $186,724 from Verizon Wireless and $127,320 from T-Mobile

A motion was made by Mr. May, seconded by Ms. Ervin, to approve this item. Passed unanimously; MOTION CARRIED. 5. CNY ARTS: Steven Butler, Executive Director a. Amending the 2015 County Budget to Make Funds Available to CNY Arts for Distribution to

Musical Associates of Central New York, Inc. ($68,750) Request to move funds to Symphoria

Continue to monitor Symphoria; they continue to operate in the black

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 4

Highlights – adding a Pops concert; Itzhak Perlman, world famous violinists, secured funding from Symphony

Foundation for marketing; in few weeks will start their summer season paid for by fees from community organization and grants – providing free concerts in parks

Mr. May congratulated them on continuing to do a great job. He will vote against the appropriation of ROT funding for this. He suggested, because of the success, the groups diligence, and sticking to the plan, that this funding be moved toward an authorized agency. It would enable him to vote in favor of it, as he would like to use the tourism dollars used a little differently. A motion was made by Ms. Williams, seconded by Mrs. Ervin, to approve this item. AYES: 6 (Knapp, Jordan, Holmquist, Kilmartin, Ervin, Williams; NOES: 1 (May). MOTION CARRIED. 6. WATER ENVIRONMENT PROTECTION: Tom Rhoads, Commissioner a. A Resolution Calling a Public Hearing for the Purpose of Considering an Increase in the Estimated

Maximum Cost of Proposed Improvements for the Metro Wastewater Treatment Plant Improvements ($5,627,294)

Large project that has to be done by permit at Metro – chlorination and de-chlorination – add new process at back of Metro campus

Mr. Rhoads distributed the following:

Secondary Bypass

Disinfection Improvement

Project: Projected Cost $25.8

million

Metropolitan Wastewater Treatment Plant

Item # Capital Cost Increase ItemAmount of

Increase

1Soil Contamination Special Environmental

Conditions - new project element$2,308,230

2Geotechnical - Additional piles and increased

length$1,682,374

3 Geotechnical - Sheeting $898,364

4Metro SPDES permit - Tertiary Gates - new project

element$436,472

5National Grid Costs - burying and relocation of

electric line - change of plans$139,341

6 Misc. Cost Increases $162,513

Additional Capital Monies Requested $5,627,294

Have an existing 800k gallon tank, required to install another 2 million gallon tank next to it

The existing chlorination tank will be repurposed and used for de-chlorination

Will ask for bonding approval at a later date, for $5.6 million

Last capital ask was done based on the preliminary engineering, suggesting that this would be $20.2 million project

Final design now complete – will cost $25,827,000

Did not anticipate as much environmental contamination

Front part of campus was acquired from National Grid – final work with soil & geotechnical information found soils were worse than anticipated -- contamination caused by National Grid campus

$1.98 million will be payable by National Grid for contract work for special environmental conditions, associated with National Grid work - project will clean up and remove soils and take them away to permitted landfill

Additional geotechnical was done between preliminary and and final design, which required additional piles at increased length

Adjacent to railroad – cannot use a dead man style; had to use a whaler style – adding about $900k to project

No scope - additional SPDES requirement – June 2014 permit from DEC for tertiary treatment – it has been incorporated into this project

Had to relocation National Grid electric line - $140k

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 5

Additional misc. cost increase – total time to complete the project means more engineering staff, etc. on campus

Chairman Knapp said that this is a call for a public hearing, but because of the size and complexity of the project, the thought was to start getting our arms around it. Mr. Holmquist asked about the time line. Mr. Rhoads said that after the public hearing, they would ask for approval of the bond and project. They would go to bid in early summer; the goal is to have it under construction by September 2015. The de-chlorination part has to be delivered by April 1, 2017 --- projected it will be together in late February of 2017. There are over 660 total days of construction in this project. If it is not brought together by April 1, 2017, they will be exposed to DEC penalties. Chairman Knapp asked if operations continue during construction. Mr. Rhoads said that they do for the most part. It is they secondary bypass, so when there are wet weather events, all of effluent is run through the first set of tanks. Excess goes through the tankage for a chlorination process currently. Chlorination has to continue so that they don’t send untreated material to the lake. There will probably be a short hiatus, where they will have to do that – hopefully in the winter when there isn’t secondary recreation on the lake. It is a complicated project and DEC still has to approve it. Mr. Jordan said that he assumed that the original $20 million included a 10%-20% cushion because it wasn’t known what types of problems would be encountered. Essentially this is more than a 25% underestimate--the original estimate was 25% off, which seems incredible high. He is concerned that the projects are getting approved and then they are coming in asking for another 25% on top of what was already a conservative estimate of the cost. He is concerned that decisions are being made that aren’t premised on sound estimates. Mr. Rhoads said that he understands the concerns; they have the same concerns. They were not prepared to deal with this much contamination on the back of the project. Because of the SPDES deadline, they had to advance the project to a fast pace. When they asked for money in 2012, it meant that they didn’t have the benefit of all of the engineering done; they weren’t aware that they would be bumping into a $2.3 million of environmental cleanup. The information was received from Arcadis and National Grid a couple of weeks ago as to what extent they were requiring the county to remove the soils, as part of the contract.. Mr. Jordan asked what went into coming up with the original estimate – seems that core sample would have been done before an initial estimate to determine what contaminants were in the soil. Mr. Rhoads said that they don’t typically do that until they get into a preliminary or conceptual phase. They don’t do soils analysis – this is Arcadis and National Grid, not WEP and CRA, engineer, that was defining some of the levels of contamination in defining what had to be done as part of the cleanup. Mr. Jordan suggested that before initial estimates are brought in, that a little bit more vetting and gathering of information be done. It wasn’t a really a surprise that the soil was contaminated. Mr. Rhoads said that they didn’t know the extent of contamination associated with National Grid; did know that there was going to be Allied waste there. They had prepared for the typical Allied waste in the budget, but had not prepared for the additional environmental conditions. They did not learn that until preliminary and final design. He doesn’t disagree with Mr. Jordan’s point – had they had benefit of more time and not under DEC’s hammer of delivery by April 1, 2017, then they would have had the opportunity to do additional engineering before they came to the legislature. It might be considered a financial failure, but if they were to get into construction and then learn of these things, there would have been time delays. It would be $1 million/month for every month they might delay a contract or come back to the legislature. It could have been better, but believes that if they don’t do this now, it could be more expensive. In answer to Chairman Knapp, Mr. Rhoads said that $1.9 million comes back; a $23 million contract net, but have to bond for the overall amount. Mr. May asked Mr. Morgan is this was part of the debt forecast – 85% is in there already. Mr. Morgan indicate that it is, noting that fund balance will be used when available. In answer to Chairman McMahon, Mr. Rhoads said that the $2 million that is coming back will go into the net of the project. Mr. Morgan confirmed that the bonding would be for $23 million. The $2 million will go to sewer fund to the bottom line of WEP’s budget. Mr. Rhoads noted that most of these are EFC projects; because they have a fund balance, they only bond for what is absolutely necessary. Mr. Morgan said that the money is used to offset future debt service. Chairman McMahon said that it basically drops to fund balance. Mr. Fisher clarified

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 6

that it is not strictly fund balance; it is restricted money and can only be used for specific uses. It is reserve, but only for bonded debt – can only be but into the capital project—can’t be put into the operating budget. Chairman McMahon said that it would be interesting to know what happens with the reserves of 10%–15%. Mr. May agreed, saying that if more has to be bonded for, then the legislature knows about, but if less is bonded for, we don’t necessarily know. It is not just the big project – it’s what is on the slate of 2015 – capital projects that we are bonding for or continuing to bond for. It would be interesting to know what the score card is. Mr. Morgan said that they work with departments and understand what the status of the project is, what the progression is going to be throughout the year, and then usually drop it down a little bit. There is cash on hand and don’t want to over bond; they are conservative in what they borrow. Mr. May said that there is a very high level of confidence in that, but would like to see the score card too. Chairman McMahon said that there are two different funds discussed - general fund for DOT projects and sewer funds. He assumes they are two different bonds and asked if we get the same rates for each. Mr. Morgan said that it depends – if it goes to the the EFC, it is subsidized. Mr. Rhoads noted that Mr. Lannon does a good job preparing all of the information and materials for the EFC; they have a 3-year process with $0 cost debt, and then they are rolled over and go long-term when the total final amount of the project is known. Typically EFC bonds are little more than one half of the AAA rate that the county gets. A motion was made by Ms. Williams, seconded by Mr. May, to approve this item. Passed unanimously; MOTION CARRIED. 7. LAW DEPARTMENT: Lori Tarolli, Acting Deputy County Attorney a. Amending Resolution No. 66-2004 Regarding a 2004 Stipulated Judgment between Honeywell

International Inc. and the County Mrs. Tarolli:

2004 - legislature approved settlement with Honeywell; lawsuit field in 1994 by Allied Signal over contamination of the lake

One piece of settlement – remedial use fee

Areas in green – properties owned by Honeywell

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 7

County’s goal in lawsuit was how to get Honeywell to remediate properties around the lake in a way that they would

be suitable for industrial use, commercial use or public benefit – put the properties back to a productive use

In 2004 the County knew it wasn’t going to be just lakefront properties, it was going to be the environs that are going to be important to the community

Didn’t want Honeywell to propose that the properties become the site where they transport/deposit dredging or contaminated soil – County wanted the properties to be productive

Parties negotiated that Honeywell pay a remedial use fee – a fee paid on top of real property taxes – essentially 50% of assessed value of the properties

Fees start when Honeywell begins remediation for any of these properties; ends when property reaches the level of productive use

2004 settlement purpose was not to be a revenue; it was thought of as a stick to hold over Honeywell’s head that they will remediate to the level of productive use

10 years later o only one property of the 19 has been remediated o the parties (lawyers) have had disputes on when the fee ends over last several years o unprecedented level of focus on the lake – commitments on state, county, local level with respect to the lake

and area around it – State Fair, Solvay revitalization, park improvements, amphitheater, bike trail, creek walk

How do we get Honeywell to remediate faster and to the level we are looking for

Proposal: o Honeywell pays the county $950k - that will settle the fees owed and avoid litigation on fees owed from years

2004-2014 o Years 2015-2020 –will suspend remedial use fees for any properties Honeywell has remediated fully to the

productive use level o For any properties not remediated, Honeywell will owe retroactively to the start of the suspension period (2014) o Defines better the time when the fees end; uses objective standard; use issuance of DEC certification of

completion Benefits of Proposal to the County:

o Receive $950k now without protracted litigation o As properties are remediated, the real property taxes increase – local governments will see increase in real

property taxes collected o Honeywell is given an economic incentive – to obtain need remediation to the objective standard o Support and leverage the multi-million investments made by the state and local governments in the lake

improvement and surround environs

Mr. Jordan said that if Honeywell wanted to avoid all remediation fees, the would have to remediate all sites by 2020. Mrs. Tarolli said that they won’t be able to do all of them, but will be able to do a significant number and are motivated to do that to avoid the fees. Mr. Jordan said for the ones they don’t get done, they will pay a lump sum retroactive amount. Mrs. Tarolli agreed. Mr. Jordan referred to the investment of the $950k back into the area, and asked if it was a requirement and where it comes from. Mrs. Tarolli said that it is the county’s desire – to collect that fee and dedicate it to those purposes. Mr. Jordan said that there is not requirement that it be dedicated to the area; Mrs. Tarolli agreed, stating “not as part of the settlement.” Chairman Knapp asked if there are limits on that money--can it go to general fund. Mrs. Tarolli said that she would speak to Budget and have an answer before session. Mr. Jordan said that there are a number of capital projects that need to be done in the county – roads and bridges are in horrible shape. There were resolutions presented today that are spending millions of dollars to do some of the work. There are other capital projects that would be a higher priority than using the money to loop the lake trail or other projects in this area. There is more concern with being able to drive to and from work and not having an axle break because of a big pot hole, or have a bridge collapse. Chairman Knapp said that it is discussion that the body should have. Chairman McMahon understands that it can be used for general fund proposes, but probably not sewer fund proposes. It couldn’t be put toward the Metro project. Mr. May said that a project was looked at a few minutes ago that involves a lot of site remediation. The capital project is designed to help with overflow situations – seems that thematically it should fit. Mrs. Tarolli said that she will discuss it with Mr. Morgan.

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 8

*Ms. Williams left the meeting. Chairman Knapp said that this is a nice package; incentive for Honeywell to clean this up; fits nicely into keeping the momentum going. A motion was made by Mrs. Ervin, seconded by Mr. Kilmartin, to approve this item. Passed unanimously; MOTION CARRIED. 8. PURCHASE: a. Revenue Contract Report – None Mr. Carroll said that he will be coming in next month to discuss consolidated procurement functions for the Syracuse School district. 9. LEGISLATURE: a. Confirming Appointments of Employees of the Onondaga County Legislature Chairman Knapp stated that Jamie McNamara will be leaving, who has done a wonderful job. Kim Memory has expressed a desire to move into the Assistant Clerk position. Dan Fitzpatrick has a great resume – various positions at the local, state, federal levels – has both public and private experience. Mr. Kilmartin noted that there have been a lot of changes in the office; this will shore up the team and make certain we have the staff we need going forward. Mrs. Ervin asked if there will be anyone else hired. Chairman McMahon said that the Clerk has the option to fill a secretary position. A motion was made by Mr. Kilmartin, seconded by Mrs. Ervin, to approve this item. AYES: 6; NOES: 0; ABSENT: 1 (Williams); MOTION CARRIED. 10. MISC.: a. Authorizing the Transfer of Real Property to the Jamesville Fire District, and Approving the

Classification of an Unlisted Action under the State Environmental Quality Review Act; Declaring Lead Agency Status; Accepting the Short Environmental Assessment Form; and Accepting and Adopting the Negative Declaration for the Transfer of Real Property (Sponsored by Mr. Knapp)

Chairman Knapp:

In 2008 Jamesville Fire Dept. came to legislature wanted to build a new fire station across the street from penitentiary

County gave them 5 – 6 acres of land, a piece of a larger parcel

A new station was built; have been a great neighbor to the penitentiary; majority of the calls go to penitentiary

Serve Jamesville Beach for the county

Help with training jail guards -- using the large bays

Fire Dept. would now like the other piece of the parcel – about 8 acres

The property has been with the county since 1933 and has sat fallow

Fire department would like to expand their training capabilities and create a park with playground, pavilion, etc.

No public park in Jamesville currently

Mr. May referenced a training center in Lysander, noting that the benefits to the surrounding agencies is huge. The volunteer agencies don’t have the money to do some of the things that need to be done, and it is great to have a facility like this. Chairman Knapp said that in the event of a large scale emergency at the penitentiary, it could be used as a staging area. A motion was made by Mr. Kilmartin, seconded by Mrs. Ervin, to approve this item. In answer to Mrs. Ervin, Chairman Knapp confirmed that if it becomes a park, it will be open to the public. Chairman Knapp said that he met with Commissioner Cowin and there is no plans for the area in the short or long term; the County Executive is on board with it also.

WAYS & MEANS COMMITTEE MINUTES – April 27, 2015 9

A motion was made by Mr. Kilmartin, seconded by Mrs. Ervin, to approve this item. AYES: 6; NOES: 0; ABSENT: 1 (Williams); MOTION CARRIED. The meeting was adjourned at 9:48 a.m. Respectfully submitted,

DEBORAH L. MATURO, Clerk Onondaga County Legislature