TOWN OF NORTH HARMONY
SPECIAL TOWN BOARD MEETING
BAN RESOLUTION NEW TOWN/COURT BUILDING
FRIDAY, 6/14/2019, 5:00 PM
ROBERT YATES, SUPERVISOR PRESENT
DICK SENA, COUNCILMAN PRESENT
DUNCAN MCNEILL, COUNCILMAN PRESENT
LOUISE ORTMAN, COUNCILWOMAN PRESENT
STEVE SENSKE, COUNCILMAN ABSENT
OTHERS PRESENT: Dave Stapleton, Attorney; Robin Miller, Bookkeeper; Charles & Wendy Klinginsmith; Nancy Thomas, Town Clerk
Mr. Yates brought the meeting to order at 5:10 PM.
Mr. Yates said the meeting was called to pass a BAN Resolution for financing of the New Town/Court Building in conjunction with the Dormitory Authority of the State of NY (DASNY) SAM grant in the amount of $1,000,000.00 and a statutory installment bond in the amount of $711,517.00 for a total of $1,711,517.00. The resolution was reviewed by all board members and Mr. Yates gave an overview.
- MOTION/RESOLUTION # 79 OF 2019 (Copy of Resolution appended to Minutes)
- MCNEILL MOTIONED TO ADOPT THE FOLLOWING RESOLUTION. MRS. ORTMAN SECONDED.
Mr. Sena asked why we needed to bond for the entire amount since we are getting $1,000,000.00 in grant funding from DASNY.
Mr. Yates said the BAN is to cover the $1,000,000 grant and the statutory installment bond of $711,517.00 because we do not know exactly how the grant funding will be spent out.
Mr. Stapleton said this is to pay off the construction lending and the permanent lending. He said the resolution provides for all the temporary lending as well as the permanent lending. He said this is on advice of Bond Counsel.
A BOND RESOLUTION, DATED June 14, 2019, OF THE TOWN BOARD OF THE TOWN OF NORTH HARMONY, CHAUTAUQUA COUNTY, NEW YORK (THE “TOWN”): (A) AUTHORIZING A CAPITAL IMPROVEMENTS PROJECT CONSISTING OF THE CONSTRUCTION OF A TOWN BUILDING, AT AN ESTIMATED MAXIMUM COST OF $1,811,517, (B) NOTING the expenditure of $100,000 from the Town of North Harmony Administration Building Construction Reserve Fund; and (c) AUTHORIZING THE ISSUANCE OF SERIAL BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,711,517 OF THE TOWN, PURSUANT TO THE LOCAL FINANCE LAW TO FINANCE SUCH PURPOSE, SUCH AMOUNT TO BE OFFSET BY ANY FEDERAL, STATE, COUNTY AND/OR LOCAL FUNDS RECEIVED (INCLUDING, BUT NOT LIMITED TO, THE APPLICATION OF UP TO $1,000,000 OF GRANT FUNDS FROM NEW YORK STATE), AND DELEGATING THE POWER TO ISSUE BOND ANTICIPATION NOTES IN ANTICIPATION OF THE SALE OF SUCH BONDS TO THE TOWN SUPERVISOR.
WHEREAS, the Town Board of the Town of North Harmony, in the County of Chautauqua, New York (the “Town”) desires to undertake a capital improvements project generally consisting of the construction of a Town Building in the Town; and
WHEREAS, the Town has previously established (on April 9, 2012) the Town of North Harmony Administration Building Construction Reserve Fund (the “Reserve Fund”); and
WHEREAS, the Town Board has previously authorized certain expenditures from the Reserve Fund in the amount of $100,000, and such expenditures have been used to pay for a portion of the costs of such project; and
WHEREAS, the Dormitory Authority of the State of New York (“DASNY”) has approved a $1,000,000 grant to the Town as part of the State and Municipal Facilities Program (the “SAM Grant”); and
WHEREAS, the Town anticipates applying to DASNY for reimbursement as costs are accrued, such that the Town will be using SAM Grant funds to pay for a portion of the costs of such project; and
WHEREAS, the Town may issue short-term financing before all such costs are reimbursed; however, the amount of any long-term financing entered into by the Town will be offset by any such SAM Grant funds received (such that the anticipated amount of such long-term financing is anticipated to be no more than $711,517);
BE IT RESOLVED, by the Town (by the favorable vote of not less than two-thirds of all the members of the Board) as follows:
SECTION 1. The Town is hereby authorized to undertake a capital improvements project generally consisting of, but not limited to, the construction of a Town Building for municipal offices and court facilities, along with associated parking, including general construction (site work, structural exterior shell, doors, window, and interior general construction), plumbing (water and sanitary piping, fixtures, natural gas piping and related adjacent site work), mechanical (HVAC equipment, distribution and controls thereof and related adjacent site work), and electrical work (electrical equipment, distribution of wiring, switching, lighting, safety, security, fire alarm, controls and related adjacent site work), as more fully identified in (or contemplated by) a report prepared by the Town’s Architect, Harrington Architecture, including all preliminary work and necessary equipment, materials and related site work and all preliminary costs and other improvements and costs incidental thereto and in connection with the financing thereof (collectively, the “Purpose”). The estimated maximum cost of the Purpose is $1,811,517.
SECTION 2. The Town Board has expended $100,000 from the Reserve Fund to finance the estimated maximum cost of the Purpose, which expenditures have been previously authorized by the Town Board. The Town Board plans to finance the remaining balance of the estimated maximum cost of the Purpose by the issuance of serial bonds in an aggregate principal amount not to exceed $1,711,517 of the Town, hereby authorized to be issued therefore pursuant to the Local Finance Law, such amount to be offset by any federal, state, county and/or local funds received (including, but not limited to, $1,000,000 in State and Municipal Facilities Program grant funds expected from DASNY). Unless paid from other sources or charges, there shall annually be levied on all the taxable real property of the Town a tax sufficient to pay the principal of and interest on such bonds or notes as the same become due and payable.
SECTION 3. It is hereby determined that the Purpose is an object or purpose described in subdivision 11(a) of paragraph (a) of Section 11.00 of the Local Finance Law, and that the period of probable usefulness of the Purpose is 30 years; however, the bonds issued pursuant to this resolution, and any bond anticipation notes issued in anticipation of the sale of said bonds, will mature no later than five years from the date of original issuance of such bonds or notes.
SECTION 4. Current funds are not required to be provided prior to the issuance of the bonds authorized by this resolution or any notes issued in anticipation of the sale of such bonds.
SECTION 5. It is hereby determined the proposed maturity of the obligations authorized by this resolution will not be in excess of five years.
SECTION 6. The faith and credit of the Town are hereby irrevocably pledged for the payment of the principal of and interest on such bonds (and any bond anticipation notes issued in anticipation of the sale of such bonds) as the same respectively become due and payable. An annual appropriation will be made in each year sufficient to pay the principal of and interest on such bonds or notes becoming due and payable in such year. Unless paid from other sources or charges, there will annually be levied on all the taxable real property of the Town a tax sufficient to pay the principal of and interest on such bonds or notes as the same become due and payable.
SECTION 7. Subject to the provisions of this resolution and of the Local Finance Law, and pursuant to the provisions of Section 21.00 relative to the authorization of the issuance of bonds with substantially level or declining annual debt service, Section 30.00 relative to the authorization of the issuance of bond anticipation notes and of Section 50.00, Sections 56.00 to 60.00, Section 62.00, Section 62.10, Section 63.00, and Section 164.00 of the Local Finance Law, the powers and duties of the Town Board pertaining or incidental to the sale and issuance of the obligations herein authorized, including but not limited to authorizing bond anticipation notes and prescribing the terms, form and contents and details as to the sale and issuance of the bonds herein authorized and of any bond anticipation notes issued in anticipation of said bonds, and the renewals of said notes, are hereby delegated to the Town Supervisor, the chief fiscal officer of the Town. Without in any way limiting the scope of the foregoing delegation of powers, the Town Supervisor, to the extent permitted by Section 58.00(f) of the Local Finance Law, is specifically authorized to accept bids submitted in electronic format for any bonds or notes of the Town.
SECTION 8. The temporary use of available funds of the Town, not immediately required for the purpose or purposes for which the same were borrowed, raised or otherwise created, is hereby authorized pursuant to Section 165.10 of the Local Finance Law, for the purpose or purposes described in Section 1 of this resolution. The Town then reasonably expects to reimburse any such expenditures (to the extent made after the date hereof or within 60 days prior to the earlier of (a) the date hereof or (b) the date of any earlier expression by the Town of its intent to reimburse such expenditures) with the proceeds of the bonds authorized by Section 2 of this resolution (or with the proceeds of any bond anticipation notes issued in anticipation of the sale of such bonds). This resolution shall constitute the declaration (or reaffirmation) of the Town’s “official intent” to reimburse the expenditures authorized by Section 2 hereof with such bond or note proceeds, as required by United States Treasury Regulations Section 1.150-2.
SECTION 9. The Town Supervisor is further authorized to take such actions and execute such documents as may be necessary to ensure the continued status of the interest on the bonds authorized by this resolution, and any notes issued in anticipation thereof, as excludable from gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”) and may designate the bonds authorized by this resolution, and any notes issued in anticipation thereof, as “qualified tax-exempt bonds” in accordance with Section 265(b)(3) of the Code.
SECTION 10. The Town Supervisor is further authorized to enter into a continuing disclosure agreement with the initial purchaser of the bonds or notes authorized by this resolution, containing provisions which are satisfactory to such purchaser in compliance with the provisions of Rule 15c2-12, promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.
SECTION 11. The Town has complied with applicable federal, state and local laws and regulations regarding environmental matters, including compliance with the New York State Environmental Quality Review Act (“SEQRA”), comprising Article 8 of the Environmental Conservation Law and, in connection therewith, duly issued a negative declaration and/or other applicable documentation, and therefore, no further action under SEQRA is necessary.
SECTION 12. In the absence or unavailability of the Town Supervisor, the Deputy Town Supervisor is hereby specifically authorized to exercise the powers delegated to the Town Supervisor in this resolution.
SECTION 13. The validity of such serial bonds or of any bond anticipation notes issued in anticipation of the sale of such serial bonds may be contested only if:
- (a) such obligations were authorized for an object or purpose for which the Town is not authorized to expend money, or
(b) the provisions of the law which should be complied with as of the date of publication of this notice were not substantially complied with
and an action, suit or proceeding contesting such validity is commenced within 20 days after the date of such publication of this notice, or
- such obligations were authorized in violation of the provisions of the Constitution of New York.
SECTION 14. The Town Clerk is hereby authorized and directed to publish this resolution, or a summary thereof, together with a notice in substantially the form provided by Section 81.00 of the Local Finance Law, in the official newspaper(s) of the Town, or if no newspaper(s) have been so designated, then in a newspaper having general circulation in the Town, which newspaper shall be designated by the Town Board in a separate resolution.
SECTION 15. This resolution is effective immediately.
* * * *
The question of the adoption of the foregoing resolution was duly put to vote on a roll call, which resulted as follows:
AYES (4): ROBERT YATES; LOUISE ORTMAN; DUNCAN MCNEILL; RICHARD SENA
NOES (0): none
ABSENT: STEVE SENSKE
THE FOREGOING RESOLUTION WAS THEREUPON DECLARED DULY ADOPTED.
- TRANSFER FUNDS RECEIVED FROM SALE OF TIMBER FROM GENERAL FUND ACCOUNT TO CAPITAL FUND ACCOUNT
Mr. Yates said we need to transfer $4,965.00 which was received from the sale of timber at the Gravel Pit and Butts Park from the General Fund into the Capital Funds account.
Mrs. Miller said the sale of the timber products was $32,965; $20,000 was used as revenue to balance the 2019 budget and the remaining $12,965.00 (ref. Motion #60 of 2019 and Motion #80 of 2019) were to be transferred to the Capital Fund.
- MOTION # 80 OF 2019
MRS. ORTMAN MOTIONED TO AMEND THE 2019 BUDGET BY TRANSFERING $4,965.00 FROM THE SALE OF TIMBER PRODUCTS FROM THE GENERAL FUND TO THE CAPITAL RESERVE FUND ACCOUNT FOR EXPENSES RELATED TO THE CONSTRUCTION OF A NEW TOWN/COURT BUILDING. MR. MCNEILL SECONDED. YES (4): SENA, MCNEILL, ORTMAN, YATES. NO (0). THE MOTION WAS CARRIED.
There was discussion that there are some issues with Harrington Architectures billing for their services.
- AWARD BIDS FOR CONSTRUCTION OF NEW TOWN/COURT BUILDING
- MOTION # 81 OF 2019
- MCNEILL MOTIONED TO AWARD BIDS FOR THE CONSTRUCTION OF A NEW TOWN/COURT BUILDING AS FOLLOWS:
General Construction: Empire B&D, Inc. $1,110,160.00
Mechanical: Citadel Services $ 232,420.00
Electrical: Sullivan Electrical Contracting $ 188,349.00
Plumbing: Wm. T. Spaeder Co. $ 80,588.00
FURTHER, THE SUPERVISOR WAS AUTHORIZED TO SEND OUT NOTICES OF AWARD AND CONTRACTS TO THE INDIVIDUAL CONTRACTORS. MRS. ORTMAN SECONDED. YES (4): SENA, MCNEILL, ORTMAN, YATES. NO (0). THE MOTION WAS CARRIED.
It was noted that all contractors had provided proof of insurance and bonding.
Mrs. Miller added that the construction contract with Harrington has also increased due to the overall cost of the project increasing from $1.5 million to $1.6 million (6.4% of the overall cost of the project).
- PROPOSED LOCAL LAW #1-2019 – INCREASE TERMS OF OFFICE
Mrs. Thomas said she has spoken to Mr. Strickland, Mrs. Ortman and Mr. Yates about increasing the terms of office for the Supervisor, Town Clerk and Highway Superintendent from 2 years to 4 years. She said copies of the proposed law were emailed to the board members. She said she would like to request that the Town Board consider scheduling a Public Hearing to adopt a proposed Local Law to that effect. She said if the Local Law is passed, it would be added as a Proposition Vote in the November 2019 Election for the voters to decide. She said Harmony and Ellicott will have this proposition on the ballot this year also and about 98% of the other towns are 4-year terms for those positions. She explained that the new election laws requiring primaries in June have pushed up the entire process to where these 2-year officers are only in office for about 14 months before they must start the process of petition and re-election all over again. She said she feels these short terms deter qualified candidates from participating because of that.
Mr. McNeill said the short term of office can also prohibit a person from being effective and having time to learn the job.
Mr. Yates said he did not have a problem with the Supervisor being a 2-year term because he will probably only be here for 2 years.
There was a brief discussion of term limits.
- MOTION # 82 OF 2019
- SENA MOTIONED TO SET A PUBLIC HEARING FOR MONDAY, 7/8/2019 AT 6:45 PM AT THE COMMUNITY BUILDING STOW, NY ON PROPOSED LOCAL LAW #1-2019, INCREASING THE TERM OF OFFICE OF THE SUPERVISOR; TOWN CLERK; AND HIGHWAY SUPERINTENDENT FROM TWO (2) YEARS TO FOUR (4) YEARS. MRS. ORTMAN SECONDED. THE MOTION WAS CARRIED.
- MOTION # 83 OF 2019
ON A MOTION MADE BY MR. SENA, SECONDED BY MRS. ORTMAN, AND NONE BEING OPPOSED, THE MEETING WAS ADJOURNED AT 5:23 PM.
Nancy M. Thomas