COMMITTEE OF THE WHOLE

Others Present: J. Foels, J. Margeson, T. Miner, B. Riehle

Media Present: B. Quinn, Wellsville Daily Reporter

Call to Order: The meeting was called to order at 7:00 p.m. by Chairman Curtis W. Crandall followed by the Pledge of Allegiance to the Flag.

Chairman Crandall’s Opening Remarks:

Chairman Crandall stated that we have had numerous Committee of the Whole meetings where we have had open discussion about different projects and kicked around ideas. Many of those ideas have been jelled up, and we are into more than our fair share of projects – some by choice and some not.

Chairman Crandall indicated that Legislator Pullen had a call earlier today from Congressman Eric Massa who will be calling shortly to provide an update on the Stimulus Package. Legislator Michael McCormick stated that it seems to him that the stimulus money is going to the state and just backing up some contracts that have already been awarded.

Chairman Crandall indicated that he had talked with Tom Carpenter, Regional Representative for Governor Paterson, about the Stimulus Package also known as the American Recovery and Reinvestment Act, at the end of last week. Chairman Crandall had seen a list from a newspaper in Poughkeepsie which included some Allegany County Projects (Belfast School, Cuba Sewer and Water, Alfred State College) that were marked to be funded with stimulus funding, but those projects were previously funded by the state. Chairman Crandall told Mr. Carpenter that he heard that New York was playing a shell game of bringing funds in and just replenishing coffers for money already promised to projects. Mr. Carpenter indicated that the projects that we see coming out early came from a list that Governor Paterson presented as projects that were ready to go. Mr. Carpenter assured the Chairman that those projects were previously submitted by the Governor, and the others are still in the works and will be moving along.

Chairman Crandall stated that at the recent NYSAC Conference they announced that Timothy Gilchrist was appointed as the Chair of the NYS Economic Recovery and Reinvestment Cabinet to oversee a team working for New York State to call out shovel ready projects. The Chairman stated that everyone should have received a copy of the summary listing all of the town and village projects that was sent to the Governor. Since that time, others have been received and sent in. Many of the projects listed indicate that they are shovel ready, but they may not be. The Chairman recently sent a memo to all towns, villages and legislators informing them that Governor Paterson created an Economic Recovery Website (www.economicrecovery.ny.gov) to promote efficiency and transparency in response to the $24 billion in aid from the American Recovery and Reinvestment Act of 2009. Chairman Crandall encouraged town and village officials to resubmit their proposals through this website. Chairman Crandall indicated that the Governor’s Office issued a press release yesterday announcing the first economic recovery projects, and Allegany County was listed; however, it was for NYS bridge maintenance and cleaning which are actually state projects. Legislator Fanton stated that the costs associated with bridge maintenance and cleaning should be under normal maintenance, and economic stimulus money should not be used for this. Legislator Michael McCormick stated that several Legislators met with Congressman Massa a few months ago, and we asked for two things – help with the Courthouse and help with the Crossroads Water and Sewer Project, and we put a monetary amount of $25 million on those projects. Legislator David Pullen briefly talked about his discussion with Congressman Massa on the phone. Legislator Pullen stated that Congressman Massa indicated that our projects are not going to qualify under other aspects of the stimulus plan, but we may qualify under the economic development component.

Conference Call with Congressman Eric Massa

Congressman Massa greeted everyone and indicated that he wanted to offer up a couple of updates. When we first talked, the Stimulus Package was still under development, and it currently calls for approximately $25 billion of taxpayer money being sent back to New York at significant political cost. Congressman Massa is trying to ensure that New York is not a donor state, and he indicated that he is trying to return as much of this taxpayer money back to New York as possible. This money is going to be spent in local areas on local projects under different authorities. We do not want to create a new bureaucracy so the majority of the funding is going to be issued through existing programs. Congressman Massa stated that every single school district in the 29^th Congressional District is receiving rather extensive funding over the next two years, and those numbers have already been released. Congressman Massa stated that with respect to certain projects now the work begins. The Congressman met with key players around the state in Chemung County to identify exactly what can and cannot be done and how quickly it can be done. Legislation has been improved since the original requirement that projects had to be shovel-ready within 90 days. The economic stimulus money has now been split in half -- the first half must be obligated within 180 days, and the second half will be distributed next year which is very good for us. Many of our smaller towns and entities just don’t have the infrastructure available to have their projects ready that quickly. The Congressman stated that the next step is to bring the Governor’s representatives together with County, Town and Village officials and set up the same kind of meeting in every county in the state like they just held in Chemung so that Albany understands what the priorities are. Congressman Massa asserted that he has very clearly articulated that Allegany County’s two biggest priorities are the Courthouse and Crossroads, and we need to continue to push it in an attempt to secure some funding. Congressman Massa indicated that he would answer a few questions.

Legislator Michael McCormick stated that he is worried about New York State being in the middle of the Stimulus Package, and he believes NYS plans to back stop a lot of its programs with this federal money. Congressman Massa stated that we should be worried. The state is in a very severe budgetary crisis, and the state budgeters are doing all they can to make their balance sheets whole. That is one of the reasons we want to have these collective and very public meetings on the record so that we have a clear understanding of what the funding is, what the guidelines are, etc.

Congressman Massa indicated that $7.4 billion has been earmarked for rural broadband development, and we should aggressively be working toward obtaining some of this funding. Congressman Massa indicated that they are having meetings to learn how to expand on what is already being done and how to get that money in the rural counties.

Legislator McCormick also mentioned the water project in Wellsville, and Congressman Massa indicated that water projects are being handled through a revolving water project fund, and the Congressman indicated that he wants to learn more about this area.

Legislator David Pullen stated that he has been told that the Crossroads Project does not qualify for funding under either the Clean Water Revolving Loan Fund or the Drinking Water Revolving Loan Fund that are both administered by the Environmental Facilities Corporation. They have their technical qualifications, and we were told that we do not qualify and apparently that is where most of the water and sewer projects will get funding, but because this is for new economic development we will not get anything through those programs. Congressman Massa indicated that this is the type of feedback he needs to get along with specific details on who said what and why so that he can help us. Legislator Pullen provided Congressman Massa with the names of the people he has spoken with, and the Congressman indicated that he has someone on staff – Mike Heenan, phone #282-225-3161 that manages stimulus issues and he will ask him to look into this.

Chairman Curtis Crandall asked about the coordination and distribution of the stimulus money and wondered what kind of role the Congressman is playing in this. The Congressman indicated that if we cannot get the answers we want or explanations that make sense, that is when he will get involved. If he senses that the stimulus money is not being adequately represented or distributed in his Congressional District, he will get involved. Congressman Massa indicated that so far he has been pleasantly surprised with all negotiations.

Legislator Karl Kruger stated that he appreciates that the CHIPS funding has been reinstated to the level of last year. It is critical to keep what infrastructure we have maintained so we don’t fall further behind. Every town relies heavily on this money. “We discussed a federal prison in Farmersville or Friendship; can you give us an update?” Congressman Massa indicated that there is really no update – he was trying to trace down a series of rumors, and what he found was a series of partial conversations that were several years old filled with “what ifs” that really ended no where. Nothing is being contemplated at this time.

Congressman Massa encouraged Legislators to contact him with concerns and updates.

Economic Stimulus Package

Chairman Crandall questioned if anyone really knows what they are doing with the stimulus money. We are not going to be able to go to one source and hammer something out. Ultimately things will go through Timothy Gilchrist. We have to use any and all means to get our message across. The Chairman reiterated that he recently sent a letter to the towns and villages encouraging them to resubmit their projects via the website the Governor recently set up.

Legislator Kruger commented that especially for our towns and villages it is very expensive to get projects to the point where they are shovel ready. It’s almost impossible when you consider the studies, engineering costs, and all the hoops that have to be jumped through. Legislator Kruger also commented on the poor quality of the water at the Crossroads, and how it should qualify especially since we have talked about opening water availability to residents.

Legislator Pullen mentioned the $7.4 billion which has been earmarked for rural broadband development. Congressman Massa previously talked about the STW Fiber Project and indicated that broadband availability in Allegany County is well under way; however, STW’s project is not going to do what Allegany County really needs it to do. Legislator Pullen asserted that we have no concrete plan or program in existence; we really need to get on the stick and develop a business plan with an actual proposal with the aid of experts on how it would ultimately work. We need to put everything together and move forward as quickly as we can so that Congressman Massa can put it in an early project for New York State.

Legislators briefly discussed the fact that very little of the economic stimulus money will actually stimulate the economy immediately. They also discussed the Federal Medical Assistance Percentage (FMAP) money and County Administrator John Margeson briefly explained how the program will work. Mr. Margeson indicated that NYSAC’s analysis looks like Allegany County should get $2.9 to $4.2 million. Because of high unemployment rates, it’s reasonable to expect that Allegany County would see $4.2 million spread out between April 2009 and December 2010. The money will not come directly to the County; instead our weekly share of Medicaid would be reduced by about $50,000 a week. Legislator Theodore Hopkins said they mentioned at NYSAC that the state has looked at money coming back to the counties, and they intend to reduce some of our other money or “play games” with our other revenue streams. Legislator David Pullen stated that the justification that Senator Schumer used is that during difficult economic times, we will experience an increase in Medicaid applications, and expenses will go up so the increased FMAP was never intended to be a windfall.

Crossroads Project

Mr. Margeson indicated that the last significant action that took place in regards to the Sewer and Water Project at Crossroads was the submission of applications to the State Comptroller’s Office about two months ago. Before districts can be created, they have to be approved by the Comptroller’s Office. Mr. Margeson indicated that he has had several conversations with the legal staff at the Comptroller’s Office and our application is being reviewed by Ellen McDonald. They have questions regarding the viability of these districts. The first question posed was why is the County moving forward with these districts without the potential for residents to tap into the system. It has always been our intention that both of these districts and the infrastructure associated with the districts was intended specifically for economic development purposes at Crossroads. We also indicated that we want to get pipe to Crossroads to foster the development of jobs. We want to make the water and waste treatment system available to residents at some time in the future. Another concern the Comptroller’s Office raised had to do with any feasibility studies we have done in the Crossroads area. They have asked us to provide business plans or market feasibility studies which would backup our thought that putting pipe in the ground would foster development. Fortunately the Development Office has commissioned a few studies. Development Director John Foels provided Mr. Margeson with copies of marketing and tourism feasibility studies that specifically addressed Crossroads. They have been forwarded to the Comptroller’s Office, and hopefully we will receive feedback soon. Another concern the Comptroller’s Office had was whether we intend to require landowners or potential owners to put up surety bonds to assist in paying the debt service associated with financing this project, and we indicated that we had not, but we could consider this if they are making that recommendation. Legislator William Dibble suggested that our Comprehensive Plan may also have material that could be used. Chairman Crandall said that with the approval of the Comptroller’s Office, that project is ready to do; we would be putting people to work and accomplishing what the Economic Stimulus Act set out to do.

Mr. Margeson also indicated that the Department of Public Works has been assisting him in contacting landowners as there are nine different spots where the pipe comes out of the right-of-way. We will either potentially buy the property for the pump stations or obtain easements. Legislator Dibble mentioned the Department of Transportation having an interest in getting water to the rest stop.

Legislator David Pullen stated that the cost would be prohibitive for any end user to have to initially pay 100 percent of the cost of this project. Hopefully we can secure a minimum of one-third of the cost of the project through grant funding. An additional one-third could be charged to the users, and the County could try to raise the remaining one-third which would ultimately be done through a bed tax if we have hotel-type facilities there. The Comptroller’s Office holds veto power. Would the County go out and do this if we do not have an end user? Can we adopt a resolution that might say that the position of this Board is that we will not actually commit any funds until we have guaranteed users? We need to have an end user out there as well as a plan of how it is financially viable to pay for it. Chairman Crandall suggested waiting to see if the information from the studies will be sufficient for them to approve our applications.

Legislator Karl Kruger stated that he sees a lack of tying the property up at the other end of the waterline a real stumbling block. Stuart Brown and his study said that we need to get control of the property from the landowner. Legislator Kruger said that he cannot believe that the Comptroller would approve a project where we are risking public funds to run a pipe to nowhere. We have absolutely no control over that property. Mr. Margeson confirmed that the Comptroller’s Office is aware that the County does not own the property. Legislator Pullen asked if Legislator Kruger is proposing that we sign purchase offers with the property owners. Legislator Kruger stated that he believes that all we really need is an agreement from the property owner that the property will be available for a certain time period for a fixed amount of money. This would give us some control of the costs, and John Foels would be armed with information that could be provided to potential buyers. Legislator Pullen stated that this type of development is very novel for the Comptroller’s Office, and various funding programs are also typically geared to residential development which makes the Comptroller’s Office wonder how it will be paid for. Legislator Pullen does not believe the County should be the one to make arrangements for the property. Legislator Dibble suggested sending something to the Governor’s Office asking for him to help us move the Crossroads Project through the Comptroller’s Office.

Courthouse Project Update

Last week LaBella started to do some preliminary work with regard to the Courthouse Project. They have gone back through the building to get some exact measurements. They will be sending a few surveyors down, and they will also be taking samples of the plaster and tile to determine if there is asbestos in the building.

Chairman Crandall stated that Congressman Massa had asked if we were ready to start our Courthouse Project if funding became available. Although we are not ready to start the full-blown project, there is preliminary work that can be done on this project. How much time does there need to be to address the building and site work? We know that the maintenance building needs to be taken down. Legislator Dibble also suggested that work could begin in the old jail at any time.

Legislator Pullen indicated that Legislator Doug Burdick has raised questions about soil borings, and he has been looking to see something official from LaBella indicating that their professional opinion is that the addition to the Courthouse could go on the footprint that they have identified in their plans. Mr. Margeson indicated that soil borings were a part of their proposal, but Mr. Margeson is not aware of what their timeframe is. Mr. Margeson stated that we do have records for borings that were done in 1974, and they will be shared with LaBella very soon. LaBella will tell us if those borings are sufficient for the current project or if they will want to take new borings. We should have an answer regarding the old borings by late next week.

Legislator Michael McCormick asked when we will go out to bid, noting that LaBella had indicated that it would be six to nine months. Legislator McCormick stated that with that timeframe we wouldn’t be breaking ground out back until next year. Legislator Dwight Fanton commented that the engineering is part of that project and much of that has been completed. In addition, LaBella has indicated that they are willing to “jump through hoops” if we receive stimulus money for our project. Mr. Margeson has asked them to expedite final drawings, and we could be ready to bid much earlier. The Department of Public Works has seen the preliminary drawings.

Budget Update

Mr. Margeson stated that when the Governor first issued his proposed budget, there was a lot of anxiety regarding that Budget. Mr. Margeson has asked the department heads to monitor any information from associations and from Albany that may impact our budget, and we are being very vigilant about that. We are also in weekly contact with NYSAC. What we have is the Governor’s proposal that hasn’t been discussed by the Senate and Assembly, and it’s being complicated by the Stimulus Package. When the dust does settle, if things do not look good, department heads will have a plan to respond to what might be some ugly news on the budget. So far, the biggest hits have been in the Health Department program; we have not seen much loss in Social Services yet.

Executive Session

A motion was made by Legislator Fanton, seconded by Legislator Dibble and carried to enter into executive session to discuss the employment history of a particular corporation. Immediately following discussion, a motion was made by Legislator Fanton, seconded by Legislator Hopkins and carried to end the executive session and return to the regular meeting.

Adjournment

The meeting was adjourned at 8:55 p.m. following a motion made by Legislator Dibble, seconded by Legislator Pullen and carried.

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board