COMMITTEE OF THE WHOLE

JANUARY 8, 2009

 

** APPROVED **


 

Members Present:  Chairman C. Crandall, G. Benson, D. Burdick, W. Dibble, D. Fanton, W. Hall, T. Hopkins, K. Kruger, M. McCormick, T. O’Grady, D. Pullen, B. Reynolds, D. Russo, N. Ungermann;  (Absent: R. Truax)

 

Others Present:  Unified Court System Counsel for Capital Planning William Clark and Administrative Assistant Andrew Isenberg, LaBella Associates Representatives Mark Kukuvka and Penny Mashtare, and approximately 10 County personnel and members of the public;  Media:  J. Loyd, Olean Times Herald.

 

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.  Invocation was given by Legislator Pullen.

 

Chairman Crandall’s Opening Remarks:

            The purpose of the meeting, like the one held on December 3, was to present information on the court facilities project and to ensure that legislators had as much information as possible prior to voting on the bond resolution January 12.  Chairman Crandall commented that he made a statement at the Organization Meeting that there are some heavy issues to deal with, and he would like to see the Board “get them behind us.”  It’s now evident that it’s not going to be our choice whether or not we get these issues behind us.  This comes from his conversation with Chief Administrative Judge Ann Pfau in Albany on January 7 regarding the sanction process the County faces if we don’t deal with the financing and scheduling for the court facilities plan we submitted to OCA.

 

            Chairman Crandall quoted from Judge Pfau’s November 18 correspondence:  “Pursuant to Section 1680-c of the NYS Public Authorities Law, I am prepared to approve the County’s Capital Plan as soon as I receive an updated schedule of milestones and confirmation that the County Legislature has authorized the financing necessary to advance this plan. … Any further delay in completing this Plan and advancing it in accordance with its terms will result in the initiation of the process set forth in the Judiciary Law leading to the imposition of financial sanctions against the County.”  In his recent conversation with Judge Pfau, Chairman Crandall was told that the County’s deadline to have financing and scheduling information to the Judge is the end of January; otherwise, the sanction process will begin the first part of February.

 

            How that process will come about is that the Judge will send to the State Comptroller the amount of funds necessary to correct the problem.  Then, if the County wishes, there is a mediation process, followed by a 60 to 90-day period for response before funds will be shut off.  There will be further conversation on the actual amount.  The question on the language of the original 1987 Court Facilities Act, dealing with the actual fund that state aid would be withheld from, was answered and clarified at the Court Facilities meeting on January 7.  OCA has given us a deadline, and there are only two meetings between now and then.  The time has come to deal with this issue.

 

County Administrator John Margeson:

            On Monday, January 12, the Board will consider a bond resolution for financing the court facilities project.  Mark Kukuvka was invited to come back before the legislature to give a brief overview on what the plan calls for and to give an opportunity for questions regarding the plan.  Mr. Kukuvka will also address other options available for additional space for County offices.

 

Presentation by LaBella Associates, Mark Kukuvka:

            Mr. Kukuvka presented an overview of the court facilities project, similar to the one given in July 2008 (see minutes of the 07/28/08 Committee of the Whole meeting; also a copy of the PowerPoint presentation is attached to the original minutes).  The plan specifications have not changed since July.  Mr. Kukuvka reviewed the Project Approach, Site Plan, Floor Plan, and Building Perspective Highlights.  The Budget Estimate has also remained the same as that presented in July, but is included below for reference.

 

Budget Estimate for Courthouse and County Office Building, July 2008:

            The estimate has been broken down by project components; the square footage and cost estimate for each component are indicated below:

 

            Courthouse Renovation:                       9,600 sf                     $  1,852,000

            Courthouse Addition:                          42,000 sf                       11,935,000

            County Office Building Renovation:    33,000 sf                         4,897,000

                        Total Project:                           84,600 sf                     $18,684,000

 

            Costs are inclusive project costs (including contingencies, construction manager fees, bonding costs, etc.) and are adjusted for inflation according to the assumption that construction will begin Summer/Fall 2009.  (For comparison purposes, the September 2007 proposal included a total project square footage of 97,700 at a cost estimate of $22,678,000; current estimates have been reduced by nearly $4 million and total project square footage has been crunched by 13,000 square feet.)

 

Summary of OCA Capital Plan Improvements:

 

·         Court/Hearing Rooms:  from 2 to 4

·         Judges’ Chambers:  from 2 to 3

·         Designated Public Waiting Areas:  from 0 to 3

·         Holding Cells:  from 1 to 4

·         Attorney/Client Conference Rooms:  from 0 to 4 plus Law Library

·         Jury Deliberation Rooms:  from 1 to 2

·         Handicapped Accessibility:  to all floors

·         Secure Separation of Prisoners, Judges, Staff, and Public

·         Formal Court Security Screening Area

·         Controlled Access to Family Court and Surrogate Office

·         Increased File Storage Capacity

·         Future Expansion:  Unfinished “Shell Space” Provided on Second Floor of Addition

 

County Office Building Space Improvements:

 

            Department                                                   Existing Net SF         Proposed Net SF

            Clerk of Board/Legislative Chambers                      3,313                           4,237

            County Administrator                                                  409                              765

            County Attorney                                                       1,005                           1,630

            Social Services  *                                                  11,629                         15,532

            District Attorney                                                          620                           2,023

            Health  **                                                                  4,693                           7,625

            Human Resources                                                  1,008                           1,782

            IT                                                                              2,513                           2,930

            Public Works                                                           2,173                           3,330

 

*    Incorporates Support Collections back into County Office Building

**  Incorporates Wellsville WIC Office and Cancer Services back into County Office Building

 

Alternatives to Renovating Former Jail for Additional County Office Space:

            Mr. Margeson noted that part of the County's plan calls for renovation of the former jail for County office space.  Over the past month, there has been discussion of looking at alternatives to renovating that floor.  Mr. Kukuvka gave a brief overview of some options that may be available and preliminary estimates for those options:

 

            The current budget estimate breakdown for the proposed renovation work on the Office Building (as of July 2008 and assuming construction begins Summer/Fall 2009) includes:

            Third floor (former jail) - 16,300 square feet

                        (including elevator work)                                 $3,590,000

            Ground, Main, and Second floors                                1,217,100

                        Total                                                                $4,897,100

 

            LaBella requested Ciminelli to provide preliminary estimates for construction of a new 16,300 square foot single-story municipal office building at the Public Safety Facility site:

            Construction costs between   $2,600,000  and          $3,000,000

            Site costs between                      300,000  and               500,000

            Soft costs between                      800,000  and            1,000,000

                        Total between             $3,700,000  and          $4,500,000

 

            Estimates to build out (finish off) the proposed 6,000 square feet of ground floor shell space in the addition to provide additional County office space were presented.  Possible functions for this space:  IT and Public Works (considering size, keeping entire departments together, and adjacencies).

            Construction costs between   $  300,000  and           $  420,000

            Soft costs between                       60,000  and                 84,000

                        Total between             $  360,000  and           $  504,000

 

Questions and Comments:

            Mr. Kruger questioned Mr. Kukuvka on (1) the cost to finish the addition for court use, as he didn't believe FFE costs were included and may come to over $500,000, (2) the cost to finish off the upper floor shell space in the addition, and (3) parking to replace the lost area and also to accommodate the additional traffic that bringing WIC and Support Collection to this building will add.  The parking problem has to be addressed before we break ground, because there aren't even any staging areas or places for the construction workers to park.  Mr. Kruger also noted his concern about the addition being built so close to the bank, and he gave photos, taken this year, to Mr. Kukuvka showing severe erosion on the bank, trees tipping over, and rock that has fallen out along the embankment.  He commented on one of Mr. Kukuvka's photos that shows a gravel embankment across the river that diverts water toward the bank and a small set of rapids that weren't there in 1978.

 

            Mr. Kukuvka responded that the County is planning to salvage as much as possible, and regarding the court spaces, FFE is all included.  Mr. Pullen referred to some recent articles that stated project estimates don't include things like paint and carpet.  Mr. Kukuvka noted that was not true; the completed facilities will be in "turn-key" condition, other than desks, chairs, and personal items.

 

            Mr. Kruger noted a couple of court projects where the buildings were much older than ours, and questioned if it is a good idea to spend this kind of money on that large of a building on a bank that’s eroding.  Mr. Kukuvka stated there was no settling and there has been no cause for concern for the present Courthouse over the history of the property.  Mr. Ungermann commented that the river is starting to eat deeper as evidenced by the foundations of the railroad bridge becoming exposed.  The bank's elevation is 54 feet above the water.  This should be a concern; the bank is not bedrock, but shale.  Mr. Kukuvka noted that soil borings will be done, and any areas for concern or problems can be mitigated by modifying the foundation system.

 

            Mr. Burdick questioned the square footage of the second floor shell space in the addition.  Mr. Kukuvka remarked that it was between 1,500 to 2,000 square feet.

 

Presentation – William J. Clark, Esq., Counsel for Capital Planning, NYS Unified Court System:

            William J. Clark, Counsel for Capital Planning, works with municipalities around the state to advance plans for adequate court facilities.  This marks his seventh or eighth visit here, and the fourth with this Board.  The last time he was here was on June 26, 2006 with a serious message to deliver regarding Allegany County's court facilities.  The message was taken seriously, and since then, a lot of effort has gone into development of a suitable plan.  Mr. Clark has worked with Chairman Crandall, Mr. Margeson, Mr. Pullen, the Court Facilities Committee, local Court personnel, and LaBella, along with Andrew Isenberg, to try to come up with an acceptable Capital Plan.  He also reviewed Mr. Ungermann's alternate proposal, which was given consideration by the Chief Architect, personnel in the Judge's Office, Mr. Younkins, and the Chief Administrative Judge.  For a variety of reasons, which were spelled out, that proposal was deemed not acceptable. 

 

            The County’s current plan, which started out at a certain level and was reduced down to its present iteration, was submitted as the County's Capital Plan.  Upon review, the Chief Administrative Judge has determined that it does meet the needs of the courts and indicated in her correspondence to Chairman Crandall that she is inclined to approve the plan upon provision of two additional items: an updated schedule and information on financing for the project. 

 

            The Board is on the verge of voting on the financing, and that is the reason for Mr. Clark's visit – to tell us that if the project is not financed in the near future, the Judge is prepared to advance the sanction process.  The time to consider alternatives is over.  The plan is almost completed.  Once it is completed, the Judge is prepared to approve it and the state will reimburse the County for up to 33 percent of the interest on borrowing.  If the plan is not completed, the sanction will be imposed and the Judge with authorize the interception of state aid.  The County currently receives approximately $13 million in state aid.  This, or a significant portion, will be withheld.  That is not a step Judge Pfau wants to take, and not a result anyone here wants. 

 

            The Court System has been very tolerant with the County's delays.  Mr. Clark's files are overflowing with articles, letters, and proposals, highlighting years of failed efforts to get this done.  We've never been so close as now to having an approvable plan; but at the same time, the Court System has never been so close to imposing a sanction on the County.  Sanctioning will be a painful, complicated process.  History has shown it to be an effective measure of getting the project done, as was the case in both Erie County and the City of Newburg.  The time has arrived for Allegany County to advance their Capital Plan.

 

Comments:

            Mr. O'Grady questioned if the County Office Building renovations are considered part of the Court Facilities Capital Plan.  Mr. Clark replied that as long as the project addresses the courts' needs, they are satisfied.  The rest of the renovations are prudent and logical to complete simultaneously.

 

            Mr. Ungermann referred to the illustration of Erie County's near sanction in the amount of $13 million and wondered how a comparison could be made with Allegany County.  There are only 50,000 people in Allegany County.  State Court System personnel may find it hard to understand with their salaries, but our average per capita income is less than $15,000, and the average income for a family of four is $34,000.  The average value of a house is $50,000, but statewide it's $148,000.  Mr. Clark works for the state, but he also works for the people, and there has to be some compassion for what we can afford.  We need to find a middle ground; either way we’re broke.  He cares about what the taxpayers have to pay, and he also realizes we have to uphold state laws.  That’s why we need to meet in the middle.  The project is getting unaffordable.  The County is already $31 million in debt, and after this, that figure will be $50 million.

 

            Mr. Clark stated that this responsibility has been before the County for over 14 years.  With this position comes the responsibility to resolve problems. Mr. Clark has the responsibility to work with us to arrive at a solution.  That solution has to be suitable for the courts.  In order to get the most for the money, he has been willing to work with any solution that is acceptable.  This plan is.  Mr. Ungermann's plan was unacceptable.  That decision was not personally made by him, but by people with expertise for what will work for the courts.  How long is the Court System supposed to wait?  If not now, when?

 

            Chairman Crandall commented that we could take Mr. Ungermann's statement even further.  Shame on New York State.  The Court Facilities Act was passed in 1987, long before any of us was here on the Board.  Not just considering what Norm pointed out, but also in other areas, Allegany County has been dealing with this mentality in New York for a long time in every department across County government – and that's having to be on the same playing field as the state's largest counties.

 

            Mr. Kruger commented that he does take OCA's position seriously, and this Board would like nothing more than to fix the court facilities, but our struggle is affordability.  In his town, the tax rate is already $76 dollars per thousand, and the citizenry is made up of a large percentage of elderly people.  He was asked by his constituents not to support the bond resolution.  If OCA was truly concerned about the County’s citizens, they'd be more willing to allow us to renovate space we already have in the former jail, bringing the project cost down to the $4-5 million range.  That space could be configured anyway the courts would deem acceptable, but LaBella was not even given the opportunity to look at that space.  It represents two-and-one-half times more space than the courts currently have.  It wouldn't be perfect, but Tioga County's building probably wasn't either, and the City of Hornell was allowed to use an old bank building, and they were able to come up with acceptable configurations. 

 

            Mr. Kruger stated that he is not supporting the bond resolution.  The taxpayers can't pay for it.  The Town of Friendship's sewer system was imposed on them by state mandates, and now OCA is mandating new court facilities, so the taxpayers will experience another tax increase for a project they'll never live to see paid for.  Mr. Kruger commented on a previous resolution dealing with money received for housing inmates at the new jail facility being placed in a reserve account, but that money has been placed in the General Fund.  He stated there will be problems with financing, and these issues will come to the forefront.  Mr. Kruger stated that if Judge Pfau decides to sanction the County and take things like Meals on Wheels from the elderly, that will be on her head; he won’t be responsible.

 

            Mr. McCormick referred to figures included in the December 3 presentation regarding the court facility project's financial outlay of $13.7 million in principle and about $10 million in interest and questioned whether the percentage of the state's reimbursement for interest was negotiable.  Mr. Clark replied that the percentage was capped at 33 percent by legislative action.  He was unsure what Allegany County would be eligible for, but thought it would be the 33 percent.  Mr. McCormick questioned if the cap could be changed by state legislative action. 

 

            Mr. Clark pointed out that the state does reimburse for court expenses such as cleaning and security.  Legislation established back in the 1970's was designed to help municipalities with their responsibilities.  They were relieved of a big burden when the state took over payroll, but localities were left with the responsibility to provide suitable facilities.  Some failed to maintain them and the state's response was to create the oversight process of the Court Facilities Capital Review Board.  Allegany County is one of 119 municipalities.  Every other one has complied with the Court Facilities Act except us.

 

            Mr. Reynolds commented that he will be supporting the bond resolution, but also requested that when Mr. Clark goes back and when he gets the opportunity to speak before the state legislature, to consider that small counties can’t be treated the same as larger ones.  Some mandated actions can totally devastate small areas.  Even issues like the risks faced by our Judges are not the same as in big city environments.  State government doesn’t do things fairly in regards to small, rural areas.  Mr. Clark responded that a New York City court project wouldn't be a $17 million project, but closer to $100 million.  They don’t compare areas on the same scale.

Closing Remarks – David T. Pullen, Court Facilities and County Space Needs Committee Chairman:

            Mr. Pullen noted that many hours have been spent on the court facilities issue, both at the local level, and by Office of Court Administration personnel.  We're at a crisis, and we’re going to try to deal with that.  Mr. Pullen responded to something that he and Mr. Kruger have differed on, and that’s perspective.  No one in this room is responsible for the mess that we’re in, but we have a problem that we have to deal with.  Mr. Kruger made a very strong statement that he won't be responsible for the fact that we may face sanctions, but in another sense, he will be responsible, because we know what can be done to avoid that.  The choice is whether we will experience a $13-14 million sanction in one year.  We couldn’t bond to cover current operating expenses, because the sanction would take away the revenue needed to bond against.  The alternative is to bond the expense for the court project over 25 years, the same way most of us would have to buy homes.  We're talking about bonding – that’s the option we have.  To say “if we can’t pay cash, we can’t do it,” most of us would be living in cardboard boxes if we took that attitude at home.  If someone chooses to say “don’t blame me for the problems,” Mr. Pullen stated that he’s not, but he is blaming them for not accepting an alternative that we have available.

 

            Mr. Pullen prepared his comments for tonight around the theme of “going” on a journey.  In 1989, Allegany County began a journey for which we are now at a turning point.  We didn’t ask to go on that journey, but that doesn’t seem to matter.  We're not making this journey alone.  The state legislature decided that every county and city in New York State had to take a similar journey.  Every other county and city has already started this journey, and most of them have finished.  Most of them were as unwilling as we are, and most of them raised the same objections for the same reasons. 

 

            Where are we "going"?  We are “going” to build a courthouse.  Whether we want to or not, or think we can afford to or not, we are “going” to have to do it.  If we don't, it's "going" to be done for us.  After much research, Mr. Pullen has concluded that we really have to do this.  If we fail to act promptly on this mandate, we are "going" to experience sanctions in the form of having all state aid intercepted for one year.  That interception amounts to about $14 million, the approximate cost of the court facilities.  The only real issue is whether we can survive the sanctions.  We cannot.  Some refuse to accept that the state can and will intercept our state aid.  There is irrefutable evidence that they can and will take that action; they have already done it with Erie County and the City of Newburg.  We have no basis to believe they will act differently with us. 

 

            One way or another, we are "going" to get a new courthouse.  There are two separate routes we can take to get there.  We can build our own courthouse and control the design, construction, and financing.  That is the direction this Board has chosen.  The other route, if we fail to act and take the responsible course, is the default route and will go to sanctions and interception of our state aid.  The rest of that trip revolves around the state deciding what the courthouse will look like, where it will be built, and how much it will cost.  He has seen how the state handles major projects, and we don’t want to “go” there.  Although we don’t have a choice about “going” on this particular journey, we do have a choice about what kind of journey it will be. 

 

            Mr. Pullen noted that he took an oath of office to uphold the laws of this state and do the best job he could to provide leadership for Allegany County.  He is “going” to do that.  He doesn't like the choices we’ve been given, but will do the best he can with the limited options before us.  Those who refuse to go on this trip are effectively choosing to hand the decision-making over to OCA and the state.  He does not want to “go” there either, and hopes that enough legislators will join him to prevent that from happening.  We are “going” to take some flack for whatever choice is made, because it’s a no-win situation.  For that reason, he is committed to make the best decision he can, and he has concluded that means moving forward with the bonding and make every effort to keep the expense as low as possible.  We have talked about this matter thoroughly, and spent years on it.  It has defined the term of this current Board.  It is time to make a decision.  We’ve been told we have the rest of January, and hopefully we’ll make the right decision.

 

Adjournment:  The meeting was adjourned at 8:45 p.m. following a motion made by Legislator Reynolds, seconded by Legislator Fanton and carried.

 

Respectfully submitted,

Adele Finnemore, Journal Clerk