COURT FACILITIES AND COUNTY SPACE NEEDS COMMITTEE

JANUARY 7, 2009

 

** NOT APPROVED  **


Members Present:  D. Pullen, G. Benson, D. Fanton, T. Hopkins, T. O’Grady

            (Absent:  W. Hall, C. Crandall)

 

Others Present:  W. Dibble, A. Finnemore, J. Foels, K. Kruger, J. Margeson, M. McCormick, T. Miner, B. Reynolds, B. Riehle, T. Ross, K. Toot;  Media:  J. Loyd, Olean Times Herald

 

Call to Order:  3:00 p.m. by Committee Chairman David Pullen.

 

Approval of Minutes:  The minutes of the December 3, 2008 meeting were approved following a motion made by Legislator Benson, seconded by Legislator O’Grady and carried.

 

 

Reminder – Special Committee of the Whole Meeting:

 

            A special Committee of the Whole meeting has been scheduled for January 8, at 7 p.m. in the Board Chambers to discuss the Court Facilities Project.  Mark Kukuvka from LaBella Associates will be at the meeting prepared to discuss the plans and related issues and answer questions.  William Clark, Counsel for Capital Planning, Office of Court Administration, will also be present.

 

Court Facilities Project SEQR Process:

 

            County Administrator John Margeson reported that the SEQR process is ready to be addressed during a special Committee of the Whole meeting on Monday, January 12, at 1:30 p.m.  The short Environmental Assessment Form (EAF) has been completed.  He notified Town of Amity’s Supervisor, Village of Belmont’s Mayor, and the NYS Department of Environmental Conservation that the action is taking place and that the County wishes to be lead agency.  Letters in response to our notification have been received from Belmont and Amity so far.  Even without the response from DEC, we will still be free to proceed on Monday.  Mr. Pullen noted that the SEQR process is required prior to moving forward with the bond resolution.

 

Additional Options for County Office Space Needs:

 

            Mr. Pullen has spoken with Mark Kukuvka over the past couple of months about less expensive alternatives to finishing the former jail space for gaining additional space for County office needs.  Other options include building a facility near the Public Safety Facility or finishing off the vacant shell space under the proposed Courthouse addition.  Mr. Kukuvka has looked into those options and appears to be ready to report at an upcoming meeting.

 

            Mr. Pullen also pointed out that the County Office Building renovation estimate of $4.8 million wasn’t just for the jail floor, but also included the necessary changes on every floor for moving or expanding departments, the elevator, and additional access.  Moving some agencies offsite would have both advantages and disadvantages, but there are still changes needed here.  Everything is tied together.  Mr. Fanton commented that he was not locked into the use of the former jail for office space.  Completing the shell space in the addition may be less expensive if we can get what we need, and use of the jail space for storage may be more appropriate.  We do have to address County office space needs.

 

Funding Possibility:

 

            Mr. Pullen noted that Mr. McCormick indicated he is hopeful our new democratic Congressman may be able to gain funding for Allegany County for our Courthouse Project.  The Congressman has talked about spending money to jumpstart the economy.  If this is true, in the best of possible outcomes, we could do this project without County taxpayer outlay.  The next question would be whether to proceed with the bond resolution, and Mr. Pullen believes we should.  Mr. Fanton pointed out that the bond resolution is necessary in order to continue on with the engineering phase of the project.

 

LaBella’s Timeline if Bond Resolution is Approved:

 

            Mr. Pullen reported that in his conversations with Mark Kukuvka, he was told that normally it is a six-month process to get to the point where we will have construction specs to go to bid with, and the bid process takes about two months.  It may be able to be compressed, but those are the normal periods.  After bids are awarded, it would take about one month to six weeks for contract documents to be executed and approved.  That amounts to a total of about nine months and is another reason to move forward on Monday.  Mr. Fanton noted that part of the money would be borrowed in 2010; it would not all be compressed in 2009.  Mr. Pullen stated that the sooner we can approve LaBella to begin, the sooner we can get down to the specifics for the contractors to proceed on.

 

Sanction and State Aid Interception:

 

            Mr. Pullen has had numerous conversations and spent many hours trying to get a definitive answer on whether or not OCA can actually sanction us and intercept funds.  OCA sent him an e-mail yesterday, citing session laws from 1981, two statutory amendments, and judicial law, and yes, they have the authority to intercept funds amounting to a little under $14 million.  They recited that they have used that authority in the past, once for Erie County and once for the City of Newberg. 

 

            The question was raised about wording in Judicial Law Section 39 of the interception of funding being taken from the “local assistance fund,” as the County Treasurer has noted that very little of our state money falls under that fund.  OCA Capital Planning Counsel William Clark responded that when the local assistance fund was abolished in 1981, the State Finance Law allowed the Comptroller to transfer those functions to other funds (where we do get funding from).  In other words, the state can withhold funds that appear under other fund names in lieu of the local assistance fund.

 

            If Allegany County does not pass a bond resolution and move forward with the Court Facilities Project, Chief Administrative Judge Ann Pfau will issue a sanction letter and direct the State Comptroller to withhold state aid.  We could challenge it, but in the meantime would not receive the funds.  County Treasurer Terri Ross added that she has been in contact with the legal department in the Comptroller’s Office, and will try to get clarification by Monday.  She also received information from Mr. Clark’s office, and our remittances from the state do total about $14 million.  The only thing actually denoted as local assistance is handicapped children funding, but from what we’ve been told, we need to assume it includes everything.

 

            Mr. O’Grady questioned if the County would try to bond $14 million to pay expenses and figure out where to start making cuts, in the event we were sanctioned.  Ms. Ross made reference to the Committee of the Whole presentation on December 3.  The County could get by for about two-and-one-half months.  She pointed out that you have to have the revenues to pledge against in order to borrow on a Revenue Anticipation Note (RAN), which we can’t do if the state intercepts that money.  Fourteen million is a big hit.  Mr. Pullen noted the difference between the state intercepting $14 million to build court facilities and the County approving the project and bonding for $14 million is that the bond for a capital project with a 25-year period of probable usefulness could be paid back over 25 years.  If the money is intercepted and we have to borrow for routine spending, that would have to be paid back over just one year.  At the presentation on December 3, County Administrator John Margeson estimated a 50 percent tax rate increase to cover the shortfall. That would be intolerable.  If the sanction becomes a reality, we would have to start cutting every non-mandated expense that we could.

 

            County Attorney Tom Miner commented that we don’t have any real choice but to move forward.  The state holds all the cards.  We were given the chance to come up with a plan we could live with, and that plan was submitted in August.  The County could play semantic games with the state, and after spending thousands of dollars on a lawsuit that will cost the taxpayers dearly, we will still have to provide new court facilities.

 

Separating the Court Facilities and County Offices Issues in the Bond Resolution:

 

            Mr. O’Grady stated that he realizes we have to do the court project, but agrees with Mr. Burdick’s past comments.  He has a problem with the County Office Building renovations being included in the bond resolution, as he doesn’t feel we have an extra $5 million to spend on this building.  It’s a project for down the road.  Mr. Hopkins commented that separation of the two projects would still be possible even if they are bonded for together, but there is no guarantee they will be looked at separately.  Mr. Pullen has heard comments from some legislators indicating they won’t support the bonding if the projects are combined, but also some saying they won’t support it unless both projects are addressed.   Mr. O’Grady suggested two separate bond resolutions, one for $14 million and a separate one for $5 million, with two separate votes.  Ms. Ross noted that we can do two separate bonds, but we can have only one capital project for the entire thing.

 

            Mr. Pullen commented that this meeting and two special Committee of the Whole meetings are all that remain prior to the bond resolution vote, so we should take this opportunity to resolve questions.  He has done a lot of research and has copies of applicable sections of law available if anyone wants them.  The conclusion he has come to is that OCA is not bluffing about their authority to sanction us.  Chairman Crandall is presently in Albany for the Governor’s State of the State Address and will also be taking the opportunity to speak with Judge Pfau.  Hopefully he can share any information he receives tomorrow.

 

            Mr. Kruger commented on the problems with issues that are not being addressed, such as parking, which will be a major cost, the location, and all the vacant space on the former jail floor.  The parking issue can’t be put off; there has to be immediate remediation.  The project is eliminating 40 to 60 parking spaces, and it hasn’t even been discussed.  That cost added to the $18.7 million will be a huge hurdle and a huge expense.

 

            Mr. Fanton pointed out that the reason this Board is in this situation is that our predecessors had the same viewpoint as Mr. O’Grady – that they couldn’t afford it and put it off, resulting in us now having to deal with escalation in costs for materials and labor.

 

New Facilities at Crossroads for Office for the Aging and Veterans’ Services, Update:

 

            Industrial Development Director John Foels presented information on the revised layout for the new Office for the Aging and Veterans’ Services facilities at the Crossroads Center.  After meetings with the County Administrator, Office for the Aging Director, and Veterans’ Services Director, they have revised the drawings to include additional space for NY Connects, to relocate the OFA Director’s Office, storage area, and Veterans’ Services, and to give Veterans’ Services immediate access from the lobby, making it easier to get to.  The overall design remains the same, but the square footage has increased from 6,500 to slightly under 8,000, anticipating current needs and some expansion of OFA over the next several years.  The proposed layout will provide for the needed confidentiality in dealing with customers.  Mr. Foels distributed a preliminary site plan drawing to illustrate how parking will be laid out and the additional access road from State Route 19 (copy attached to original minutes).  Mr. Dibble requested drawings to show locations of the Senior Foundation building and the sewer and leach field.

 

            County Administrator John Margeson is currently reviewing an outline of terms and conditions.  Mr. Foels briefly summarized that some of the terms would include: utilization of the existing heating system (it is oversized for the present facility); sharing of the water and sewer services; the addition would have its own telephone and electric service; IDA would provide building maintenance, mowing, and plowing; and cleaning costs would be separate.  The County would carry insurance to cover liability and contents; in essence the County would have “renters” insurance and the IDA would have the “landlord” insurance.  When asked if the IDA was looking for a long-term agreement, Mr. Foels responded that they are proposing a similar agreement to the one the County presently has with the IDA for the existing facilities.  They are looking at two five-year leases with renewal.  The IDA will be borrowing for the building over a 20-year term, and that would allow them to get funding.  Mr. Foels has met with the bankers, and they are in position to move forward.  The County’s monthly installments would be $7,500, but that includes maintenance costs, not just debt service, and a little cushion to cover possible interest rate increases, etc.  As construction progresses, if expenses come in lower than estimated, that will be reflected.  The entire process will be transparent.

 

            Mr. Margeson noted that the next step will be for the legislature to approve a resolution authorizing a lease agreement with the IDA.  They will need that prior to applying for the mortgage.  The IDA attorney will consult with the County Attorney, and this committee will consider the proposed agreement at its next meeting on February 4, and then will refer it on to Ways and Means.

 

 

NEXT MEETING:  Wednesday, February 4, 2009 at 3:00 p.m.

 

Adjournment:  The meeting was adjourned at 4:00 p.m. following a motion made by Legislator Fanton, seconded by Legislator Hopkins and carried.

 

Respectfully submitted by

Adele Finnemore, Journal Clerk