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HomeMy WebLinkAbout10-29-02 Budget & Administration Committee Meeting Agenda BUDGET AND ADMINISTRATION COMMITTEE OCTOBER 29, 2002 FOLLOWING 7 :00 P.M. BUDGET MEETING #5 COMMON COUNCIL CHAMBERS AGENDA Statements from the Public Amendments to Tonight' s Agenda A. Building Department 1 . Proposed Fee Charges and Increases - Discussion (15 min. ) B. Planning Department 1 . Request Funds for Neighborhood Improvement Incentive - Discussion/Resolution (10 min. ) C. DPW/TCAT 1 . Request to Amend TCAT Consolidation Agreement - Resolution (15 min. ) D. Chamberlain 1 . Real Property Tax Exemptions for Senior Citizens and Persons with Disabilities - Discussion (25 min. ) E. Controller 1 . Request to Extend Cooperative Energy Contract - Resolution (5 min. ) 2 . Establish Mandatory Debt Reserve for Proceeds from Sale of Carpenter Business Park - Resolution (5 min. ) F. Reports 1 . Mayor' s Report 2 . Council Members' Announcements 3 . Next Month' s Meeting: 11/18, 11/19 or 11/21/02? ,y �S Controller - Request to Establish Mandatory Debt Reserve for Proceeds from Sale of Carpenter Business Park WHEREAS, Carpenter Business Park has recently been sold for $970, 000 with the City' s share of the proceeds at $378, 977 . 92, and WHEREAS, the City is required by General Municipal Law to establish a Mandatory Debt Reserve from the proceeds of the sale of property to pay off any outstanding debt on the property, and WHEREAS, as of December 31, 2002, the Carpenter Business Park Acquisition has an outstanding debt balance of $116, 000, which needs to be paid off from the proceeds of the sale, and WHEREAS, the remaining portion of the proceeds, $262, 977 . 92, can be used by the City for any purpose and have been included in the 2003 Budget as revenue to assist with balancing the 2003 Budget; now, therefore, be it RESOLVED, That Common Council hereby establishes a Mandatory Debt Reserve #28 Carpenter Park Proceeds in an amount not to exceed $378, 977 . 92 , and be it further RESOLVED, That the City Controller is hereby directed to pay off the outstanding debt on the Carpenter Business Park Project of $116, 000 and use the remaining portion as revenue from Sale of Property in the 2003 Budget . 9/18/2002 Carpenter Business Park Uses & Sources of Project Costs City of Ithaca, NY Sources Uses FEDERAL LOCAL CDBG ARC UDAG CITY IURA NYSEG Totals I Wisc.Revenue l I Land Acquisition $126,386; i $24,614 $35,000; $186,000 Professional Fees $5,014; $65,625; $2,905; $73,544 Financing costs $3,564; $3,564 BAN interest $10,972; $10,972 Utility station $42,968 $42,968 Construction $150,000; $240,429; $390,429 Miscellaneous ; ; $1,875; $1,286; $3,161 TOTALS 1 $131,400; $150,000; $24,614 $357,464; $4,191; $42,9681 $710,637 %of Total 18.49% 21.11% 3.46% 50.30% 0.59% 6.05% 100.0% Federal Local $306,014 $404,623 43.06% 56.94% Abbreviations: CDBG=Small Cities Community Development Block Grant program ARC=Appalachian Regional Commission CITY=City of Ithaca,capital project#233,authorized by Common Council on 1/1/90 and 3/31/01 IURA=Ithaca Urban Renewal Agency NYSEG=New York State Electric&Gas Notes: 1. CDBG funding consists of following award:1981-$9,400;1982-$32,000;and 1984-$90,000 2. 1985 ARC funding award=$150,000 3. The Carpenter Business Park project included acquisition and development of a 2.25 acre community garden. 4. Uses of ARC funds are imputed,as funds were paid to City in lump sum after project completion. 5. Interest paid on bonds approximately equalled interest earned on invested funds prior to disbursement per S.Thayer,Deputy Controller,5/1/02. 6. Supporting documentation for IURA funded uses located at IURA. 7. Supporting documentation for all other project costs located at Controller's Office. Prepared by N.Bohn,IURA Page 3 911812002 Carpenter Business Park Disposition Allocation of Proceeds from Property Sale Net Proceeds From Sale Income Expenses Net Proceeds Income: Sales Price-Building Links,Inc. $900,000.00 Option Price-Community Gardens property $70,000.00 Total-Fair Market Value $970,000.00 Expenses: Selling Expenses of City of Ithaca: Appraisal-NorthEast Appraisal $2,450.00 Subtotal-Selling Expenses of City $2,450.00 Selling Expenses of IURA: Brokerage Fee-Lama $35,000.00 Brokerage Fee-Edelman $19,000.00 Survey-T.G.Miller $1,750.00 Abstract-Monroe-Tompkins-Watkins Title $265.00 Deed stamps,etc.-County Clerk $3,898.00 Copying-Dataflow $77.55 Insurance,liability-Selective $427.50 Insurance,property-Ithaca Agency,Haylor $732.20 Legal advertisements-Ithaca Journal $152.69 Legal advertisement-Syracuse Newspapers $18.00 Legal advertisement-Democrat&Chronicle $172.35 IURA staff time,7/99-9/02 $13,490.41 Subtotal-Selling Expenses of IURA $74,983.70 Minus Total Selling Expenses: $77,433.70 Net Proceeds From Sale $892,566.30 Allocation of Net Proceeds' (Apportionment Based on Pro-Rata Project Funding) %of Total Share of Funding Source Proiect Fundinq Net Proceeds CDBG 18.49% $165,039.55 ARC 21.11% $188,401.31 UDAG Miscellaneous Revenue 3.46% $30,915.40 Subtotal-Federal: 43.06% $384,356.27 City of Ithaca 50.30% $448,977.92 Other Local-IURA&NYSEG 6.64% $59,232.12 Subtotal-Local: 56.94% $508,210.03 Total 100.00% $892,566.30 Page 4- - Final Allocation of Proceeds From Sale of Carpenter Business Park Reimbursement of Selling Costs: City of Ithaca (�+ K 'a xO lb 0/49 $2,450.00 IURA $74,983.70 Federal Reimbursement: 39.6%Share of Net Proceeds to IURA-Restricted Use:CDBG Eligible Activities $353,440.87 3.46%Share of Net Proceeds to IURA -Restricted Use:UDAG Eligible Activities $30,915.40 Local: 6.64%Share of Net Proceeds to IURA-Unrestricted Use $59,232.12 50.3%Share of Net Proceeds to City of Ithaca-Unrestricted Use 16103 $378,977.92 City of Ithaca-Community Gardens,Retention or Receipt of Future Option Proceeds $70,000.00 Total Fair Market Value of Property $970,000.00 Notes: 1. "Carpenter Business Park Disposition"includes disposition of the Community Gardens parcels for the purposes of this analysis. 2. Per 24 CFR 570.505(b):Upon disposition of a CDBG asset,the recipients CDBG program shall be reimbursed in the amount of the current fair market value of the property,less any portion of the value attributable to expenditures of non-CDBG funds. 3. IURA sold Carpenter Business Park to Building Links,Inc.for$900,000 on 2119102.As part of the sales agreement, the City executed an option agreement with Building Links,Inc.on 02/14/02 to sell the 2.25 acre Community Gardens property for$70,000 subject to approval of the lessee(Project Growing Hope,Inc.)or expiration,and non-renewal of the lease,in 2013. 4. Abbreviations: CDBG=Small Cities Community Development Block Grant Program(administered by HUD) ARC=Appalacian Regional Commission grant(administered by HUD) IURA=Ithaca Urban Renewal Agency UDAG=Urban Development Action Grant(administered by HUD) HUD=U.S.Department of Housing&Urban Development Prepared by N.Bohn,IURA,reviewed by IURA Budget&Admin.Committee 9.18.02 Page 5 ADVANTAGE 3556 Lakeshore Road ENERGY, Suite 120 ®_ Buffalo,NY 14219 AWL IN C. 716.826.9778 •Fax 716.826.9726 Toll free 1.800.594.4349 E-mail info@advantageenergyusa.com CONTRACT EXTENSION AUTHORIZATION This document shall serve as authorization to extend the term of contract between ("Customer") and Advantage Energy, Inc("Advantage")whereby Advantage is the supplier of electricity to Customer. The original contract was due to expire on March 31, 2003. However, this Contract Extension Authorization hereby extends that contract for one additional year. The new expiration date is the first meter read date after March 31,2004. ADVANTAGE CUSTOMER Signed: Signed: Name: Jody M. Spaeth Name: Title: Vice President Marketing&Sales Title: Advantage Energy,Inc Company: 3556 Lake Shore Rd, Suite 120 Address: Buffalo,NY 14219 City: Tel: (716) 826-9778 fax: (716) 826-9725 Tel/fax: Customer ID: Meter#: The Power of Piftership MUNICIPAL ELECTRIC & GAS ALLIANCE 9 Sheldon Guile Boulevard • Owego,New York 1 3827 A Local Development Corporation Phone:607-687-2380 • Fax:607-687-4236 October 6,2002 w w w.m e g a e n e r g y.o r g City of Ithaca. 108 East Green St. Ithaca,NY 14850 Attention: Mr. Stephen Thayer Re: Extension of Contract with Advantage Energy, Inc. Dear Stephen Thayer, It is a pleasure to tell you about lower electricity rates, thanks to the growing market power of the Municipal Electric and Gas Alliance(MEGA). MEGA, of which your municipality is a participant, has endorsed a one-year extension of our preferred supplier agreement with Advantage Energy, Inc. (AEI) of Buffalo. We do so because,beginning January 1, 2003,our new arrangement with AEI will give you substantially increased savings. The original program agreement we entered into with Advantage in March 2001, and which would terminate in March 2003, provides the option for MEGA to enter into up to three one-year extensions. With this first one-year extension, MEGA retains the option of bidding the program next year for service after March 2004. In the meantime, here are the features of our new agreement with AEI, features which are available for your municipal accounts simply by executing the enclosed AEI Extension Agreement. • Your overall savings will grow,for many accounts by more than 100%. • AEI will enroll your accounts in the new NYSEG raze plan appropriate to your needs. You will be seeing a great deal of mail and publicity about the new rate plans in the coming weeks. MEGA has closely monitored the NYSEG rate case, and we have determined that giving our supplier, AEI, responsibility for enrolling your accounts will assure that you continue to receive the lowest rates possible, at no risk. • Green power (environmental, renewable sources) will be available to your accounts, should you request it, later this year. Green energy costs substantially more than the market price you currently pay, so MEGA will make it available only to those customers that expressly request it. If you desire pricing for green electricity later this year, please send the enclosed request form to the MEGA office at your earliest convenience. The enclosed letter from AEI describes how the new program will benefit you. It also provides both a summary of your savings to date, and an estimate of what your savings will be for the coming term. MEGA's board of directors and its consultants, Salerni&Boyd, Inc.,have reviewed AEI's offer in detail, and we are satisfied that it meets all of the requirements necessary for municipalities, as well as for other customers, and also provides a price for electricity that is as good or better than any other available in today's marketplace. MEGA is proud of the savings we have brought to municipal, residential and commercial customers throughout our six-county region, and we look forward to serving you for the coming years. Please see that the enclosed agreement and resolution are promptly acted upon and returned in the postage paid envelope, so that your electric savings can continue and grow without interruption. If you have any questions,please contact the MEGA office at 607-687-2380 or Salerm&Boyd at 518-580-9244. Sincerely, C�'& zt�- Stuart Stein President and Acting Executive Director ADVANTAGE 3556 Lakeshore Road ENERGY Suite 120 Buffalo,NY 14219 AWL IN N C. 716.826.9778 •Fax 716.826.9726 Toll free 1.800.594.4349 E-mail info@advantageenergyusa.com October 2002 City Of Ithaca 202 Water St Ithaca,NY 14850 Advantage Energy, Inc. is pleased to have served your electric supply needs over the past 18 months, and we are also pleased to have received the endorsement of the Municipal Electric and Gas Alliance (MEGA), to continue as your supplier through March 2004. The good news for you is that your savings will increase. All you need to do is to execute the enclosed agreement and return it to our offices as soon as possible. Savings summary to date You may be wondering how much you have saved up to now, since signing with MEGA in Spring 2001. We have calculated that for your accounts,you have saved$26,626.72 through September 2002. Savings estimate beginning Jg anuary 2003 When the NYSEG rates change in January,your savings will increase substantially, for some accounts by more than 100%. Based on your usage history, we estimate that your overall savings will be $47,840.41 through March 2004. If you are interested in annualizing that figure for budgeting purposes, you can divide the savings by 15 months, then multiply by 12 to get an estimate for calendar year 2003. Rate Plan Enrollment Over the coming weeks, you will receive mail and see publicity from NYSEG utility about a variety of rate plans available to customers starting in January. MEGA has reviewed your accounts and has made recommendations to us that maximize your savings and limit your exposure to market volatility. Accordingly, upon MEGA's recommendation, we will enroll your accounts in the rate plan that assures these objectives will be met. Extension Agreement Please execute the enclosed extension agreement at your earliest convenience. Doing so will allow us to immediately enroll your accounts in the correct NYSEG rate plan, while assuring you of immediate savings increases starting January 2003. If you have any questions about these terms or any other aspect of AEI's service to you, please don't hesitate to call us at 888-649-4464. Sincerely, Jody M. Spaeth Vice President- Sales and Marketing ..... CITY OF ITHACA 108 East Green Street Ithaca, New York 14850-5690 _�►�,,� ,,r`�� BUILDING DEPARTMENT Telephone: 607/274-6508 Fax: 607/274-6521 I OCT 22 2002 � iJ MEMORANDUM To: Patricia Vaughan, Chair, Budget& Administration Committee From: Phyllis Radke, Building Commissioner tr- Re: Building Department Fee Adjustments Date: October 22, 2002 Two primary services the Building Department provides are building permit approval and inspections, and housing inspections. The current fees for building permits and rental housing inspections adequately compensate the dedicated staff time. However, there are other responsibilities that the Department is charged with that require considerable staff time but are inadequately compensated by application fees. The services that need to have fee adjustments are Certificates of Compliance for single family homes, lot line adjustment certificates, and appeals to the Zoning Board. Banks are frequently requiring single-family homes to have a current Certificate of Compliance in order for the buyer to procure a mortgage. Under the City of Ithaca Housing Ordinance, single family homes are required to have a housing inspection every five years. There is no fee because the Ordinance does not require the Building Department to issue a Certificate of Compliance after violations of the Housing Ordinance are corrected. Nevertheless, there is a cost to do the inspection, list the violations and to conduct all necessary reinspections. The strong housing market has caused a significant increase in the request for single family home inspections. I am proposing that a flat fee of$100 be charged for Certificates of Compliance for single family homes and $150 for two-family owner-occupied homes that are being sold. The Certificate of Compliance will include all associated housing inspection fees, an electrical survey, and a defects removed letter from the City's Electrical Inspection Bureau. In 1998 the ordinance concerning the Subdivision of Land was rewritten so that the Building Commissioner could issue Certificates of Lot line Adjustments. A lot line adjustment is typically sought when someone buys property from an adjacent property and incorporates the addition into their parcel. In order to issue a lot line certificate the Building Commissioner must make sure that the adjustment"will not violate any City codes". It also requires `An Equal Opportunity Employer with a commitment to workforce diversification." To: Patricia Vaughan, Chair, Budget& Administration Committee October 22, 2002 From: Phyllis Radke, Building Commissioner Re: Building Department Fee Adjustments Page 2 compiling and reviewing survey maps and property deeds. The fee for a lot line adjustment is currently$50. I am proposing to increase the fee to $100 for one- and two-family residential properties and$150 for all others to more adequately reflect the time it takes to issue this Certificate. The major fee increases I propose pertain to zoning variances and appeals. Currently these fees basically cover the cost to run public notices in the newspaper. The problem is that appeals and variances are very time consuming for building department staff and the number of variances per year are increasing because of new zoning districts, increases in new construction, and new home purchases. In 2001, the Department handled 24 variances. This year we have had 41 cases. Depending on the number of cases in any given month, Kathleen Boyd, the department's Administrative Secretary, spends approximately a third to half of her time preparing cases for the Board of Zoning Appeals. In the past, I have spent at least a third of my time dealing with zoning issues. This time constraint is now shared with our Plan Examiner. Regardless of how the work is shared amongst us, applicants need to better compensate the City for the staff time spent for Zoning Board appeals and variances. I have looked at fee schedules in other New York municipalities and feel that the proposed increases are in line and more than justified. The last item is a clean-up item. Currently, a person can renew a building permit for$25 or 10%of the original permit fee. However, the minimum cost for a building permit is $30. I would like to adjust the minimum renewal fee to $30 or 10% of the original cost, whichever is larger. Also, no restriction was ever placed on the number of times a person can renew a building permit. In most cases a building permit is good for two years. I am proposing to add language that would limit building permits to being renewed only once. PR/kb °�i CITY OF ITHACA 108 East Green Street Ithaca, New York 14850-5690 } �C+ r•� BUILDING DEPARTMENT ��RAIEO Telephone: 607/274-6508 Fax: 607/274-6521 October 22, 2002 PROPOSED FEE CHANGES: Certificate of Compliance, 210-43 Add under 210-43.D.(3): "Home owners wishing to procure a Certificate of Compliance for their house for purposes of selling the building will be assessed a service charge of$100 for a single family owner-occupied home and $150 for a two family owner-occupied dwelling. Fees for such service include filing, fee, housing inspection fee, an electrical survey and a defects removed letter from the City's Electrical Inspection Bureau. Lot Line Adjustment Fees, 290-15 Current fee: $50 Proposed change: $100 for one- and two-family lots, $150 for all others. (Note: Planning Department might want to revise subdivision fees) Zoning Fees, 325-40.B.(2)(d) Current fees: Area and use variances for one- or two-family owner occupied dwelling: $50. Area and use variances for non-owner-occupied residential one- and two-family dwellings, multiple dwellings, commercial properties, and sign variances: $75 Proposed changes: Area variances for deck or swimming pool: one- and two-family dwellings $50; all other area variances for one- and two-family dwellings: $100 Area variances for multiple residence buildings, commercial properties, or sign variances: $150 Appeals of commissioner's interpretation: $150 All use variances: $300 Special permit applications for accessory apartments (change 325-10.B.(1)(h), currently$15), bed &breakfast homes, and home occupations: $100. All other special permit applications (including bed &breakfast inns): $150. Building permits 146-6.C.(2)(a)[4] Current: Building permit fee renewal: $25 or 10% of the original permit fee, whichever is larger. Proposed change: $30 or 10% of the original permit fee, whichever is larger. Building permits can only be renewed once. An Equal Opportunity Employer with a commitment to workforce diversification." �� To: Budget and Administration Committee S 2 0 2002 From: Phyllis Radke, Building Commissioner Re: Proposed Fee Charges and Increases Certificate of Compliance Fees for Owner- Occupied Dwellings The Housing Ordinance states that all residential buildings shall be inspected at least every five years. Since rental properties are suppose to be inspected every three years this leaves a requirement for owner occupied homes to be inspected at 5- year intervals. Homeowners generally do no want their properties inspected. The Housing ordinance does not require homeowner's to pay for a fee for a housing inspection of an owner occupied unit. However, the recent property market has seen a large increase in owners requesting the Building Department to conduct Certificate of Compliance inspections. One reason for this change is that many banks require homes to have a current Certificate of Compliance as a condition for lending money. The buyer of the home needs a certificate in order to obtain a mortgage. The Housing Ordinance stipulates Certificate of Compliance fee for rental units. (See: City of Ithaca Housing Ordinance Section 210-42). I am proposing a new fee for owner occupied homes that request a Certificate of Compliance because they are selling their house. The fee will be $100 for a single family home and $150 for a duplex. This fee justifies the cost to process the application and for the building to be inspected by a code and electrical inspector. Lot Line Adjustments In 1998, the Subdivision Ordinance was changed to include Lot Line Adjustment Certificates for a fee of$50. After a review of the applicable site surveys and deed descriptions and a determination that the properties involved will remain in compliance with all land use regulations, the Building Commissioner can issue this certificate. It generally takes a couple of hours to review documentation, zoning compliance and to write the certificate for each lot line adjustment application. The property owner benefits form the lot line adjustment in that the property becomes more valuable or useable. Fees should be adjusted to $100 for one and two family lots and $150 for all other applications. Zoning Fees: Aside from the building and housing inspection programs, a program that continues to grow in size is zoning inspection and enforcement. The Planning Department creates and amends different zoning districts in the City but it is the sole responsibility of the Building Department to review projects for zoning compliance, to enforce the Zoning Ordinance and to support the Board of Zoning Appeals. In the last couple of years at least 10 new zoning districts have been created. As the City's master plan for development becomes more complex so do the requirements of each zoning district. The Building Department spends an enormous amount of time dealing with a variety of zoning issues. Even when a property owner plans on just increasing occupancy in a building, the property must be reviewed for zoning compliance. Every parking area that adds an additional car must be reviewed to see if such an enlargement is allowed under the parking ordinance. All variances for properties and signs must seek a variance from the Board of Zoning Appeals. The Zoning Board of Review requires considerable staff support time. This staff time is inadequately provided for by the applicant's fee. Per month I spend an average of three to four hours on each application and Kathleen Boyd my administrative secretary spends an average of six hours per application. All variances are required to be advertised in the Journal twice before the public hearing. Between advertising and copying applications for Board members, costs run close to $75 per case. Current fees are $50 for owner occupied buildings and$75 for signs and non-owner occupied properties. The largest increase in proposed fees is the one for a use variance. A use variance is a substantial benefit to the property owner and allows an otherwise non- permitted use in a particular zoning district. Building Permit Fees The only adjustment proposed is changing the cost of permit renewals from $25 to $30. $30 is the minimum fee for any building permit or inspection service. I am also proposing that building permits be allowed to only be renewed once. Proposes Fee Changes: Certificate of Compliance 210-43 Add under a 210-43 D. (3): "Home owners wishing to procure a Certificate of Compliance for their house for purposes of selling the building will be assessed a service charge of$100 for a single family owner occupied home and $150 for a two family owner occupied dwelling. Fees for such service include filing fee, housing inspection fee, an electrical survey and a defects removed letter from the City's Electrical Inspection Bureau. Lot Line Adjustment Fees 290-15 Current fee: $50 Proposed change: $100 for one and two family lots, $150 all others. (Note: Planning might want to revise subdivision fees) Zoning Fees 325-40.B. (2)(d) Current: area and use variances for one or two family owner occupied dwelling - $50. Current: non- owner occupied residential one and two family dwellings, multiples, commercial, and signs - $75. Proposed: Area variance for deck or swimming pool—one and two family dwellings $50; all other area variances for one and two family dwellings $100 Area variance for multiple residence buildings, commercial properties, or sign variances, $150. Appeals of commissioner's interpretation$150 All use variances $300. Application for accessory apartments (change 325-10B. (1) (h) currently$15)bed and breakfast homes and home occupations to $100. All other special permits $150. Building permits Current: Building permit fee renewal " $25 or 10% of the original permit fee whichever is larger"146-6. C. (2)(a)(4). Proposed: "$30 or 10% of the original permit fee whichever is larger. Building permits can only be renewed once." CITY OF ITHACA V~�f � 108 East Green Street Ithaca, New York 14850-5690 OFFICE OF THE CHAMBERLAIN �Po� O Telephone: 607/274-6580 Fax: 607/272-7348 1 To: Budget and Administration Committee From: Debra A. Parsons, City Chamberlain Re: Real Property Tax Exemptions for Senior Citizens and Persons with Disabilities Date: October 22, 2002 New York State has made changes to the law that allows municipalities to grant property tax exemptions to seniors and to persons with disabilities. The exemption is based on income. Current city code provides the maximum exemption for persons with income of less than$20,500 and the smallest exemption for persons with income of up to $28,900. State law has been changed to increase each of the limits by$1,000. If the city wishes to adopt the state changes, we need to do so prior to January 1 to provide Tompkins County Assessment with sufficient time to apply the changed criteria to the applications submitted by March 1. Both changes require a public hearing that could not occur before the December meeting of council. I have asked for a projection of cost from assessment that I hope to provide at the meeting, although any changes made not will apply until the 2004 city taxes. Tompkins County also passed a resolution pursuant to NYS law to allow automatic renewal of the senior citizen exemption in cases where the owner of the property has been exempt for five years. The New York law requires that a notarized statement of continued eligibility be filed with each tax paid under this provision. The intent is laudable. However, the reality is that each senior would need to file three affidavits, rather than one application for the exemption. From the city's standpoint, the administration of this provision will be problematic. We will need to identify the properties affected, mail the affidavits, and test each payment made to see if the affidavit is required. If the affidavit is not filed, we are required by the state law to correct the tax roll and bill the additional tax, time consuming on our part and costly on the senior's part. I am recommending that the city not pass a similar resolution. City seniors would continue to file an annual application for the exemption. "An Equal Opportunity Employer with a commitment to workforce diversification." �� Controller - Request to Establish Mandatory Debt Reserve for Proceeds from Sale of Carpenter Business Park WHEREAS, Carpenter Business Park has recently been sold for $970, 000 with the City' s share of the proceeds at $378, 977 . 92, and WHEREAS, the City is required by General Municipal Law to establish a Mandatory Debt Reserve from the proceeds of the sale of property to pay off any outstanding debt on the property, and WHEREAS, as of December 31, 2002 , the Carpenter Business Park Acquisition has an outstanding debt balance of $116, 000, which needs to be paid off from the proceeds of the sale, and WHEREAS, the remaining portion of the proceeds, $262, 977 . 92, can be used by the City for any purpose and have been included in the 2003 Budget as revenue to assist with balancing the 2003 Budget; now, therefore, be it RESOLVED, That Common Council hereby establishes a Mandatory Debt Reserve #28 Carpenter Park Proceeds in an amount not to exceed $378, 977 . 92 , and be it further RESOLVED, That the City Controller is hereby directed to pay off the outstanding debt on the Carpenter Business Park Project of $116, 000 and use the remaining portion as revenue from Sale of Property in the 2003 Budget . CITY OF ITHACA v~`� '•rt 108 East Green Street— 3`d Floor Ithaca, New York 14850-5690 Ong fcoR`y �,.`� DEPARTMENT OF PLANNING AND DEVELOPMENT /b�".FO H. MATTHYS VAN CORT, DIRECTOR OF PLANNING AND DEVELOPMENT DOUGLAS B. McDONALD, DIRECTOR OF ECONOMIC DEVELOPMENT JOANN CORNISH, DEPUTY DIRECTOR OF PLANNING & DEVELOPMENT Telephone: Planning & Development - 60--2-4-6550 Community DevelopmentlURA 60-•2--+-6959 Email: plan n ing@ cityofithaca.org Email: iura(acitcolithaca.org Fax: 60--2-4-6558 Fax: 00--2-4-6558 To: Ithaca Urban Renewal Agency members r From: Nels Bohn, Director of Community Development, IURA t Re: Disposition of Carpenter Business Park—Allocation of Proceeds Date: September 23, 2002 Please find attached calculations to allocate out proceeds from the sale of Carpenter Business Park (CBP). There are two components to the property disposition: (1) Sale of the improved vacant business park land, and (2) An option agreement by the City of Ithaca to sell the Community Gardens. The approximately 7.5 acre CBP was sold to Building Links, Inc. for $900,000 on February 19, 2002. The 2.25-acre community garden parcels were optioned to Building Links, Inc. by the City of Ithaca on February 14, 2002 for $70,000 subject to several contingencies, including the approval of the lessee (Project Growing Hope, Inc.) during the term of the lease extending until December 31, 2013. The initial $70,000 sales price is to be adjusted for inflation. To date Building Links, Inc. has not exercised the purchase option. The first section of calculations shows project costs by funding source. The next section calculates the net proceeds generated from the disposition by subtracting selling costs from the sales and option prices for the properties. The third section allocates the net proceeds in accordance with federal regulations to reimburse federal funding sources on a pro-rata basis. The final section distributes out all sales proceeds and indicates any restrictions on the future use of funds. "An Equal Opportunity Employer with a commitment to workforce diversification." V The CBP/Community Gardens project was completed in September 1990 at a cost of $710,637. After selling expenses, net proceeds from the disposition are calculated at $892,566.30, thereby generating a surplus of $181,929.30. Generally speaking, the net sales proceeds are divided up on a pro-rata basis according to the share each funding source invested in the project. Since the project received Community Development Block Grant (CDBG) and Appalachian Regional Commission (ARC) funding, CBP and the Community Gardens are considered a CDBG asset. Upon disposition of a CDBG asset, the community's CDBG program must be reimbursed in the amount of the current fair market value of the property, minus the portion of value attributable to the expenditure of non-federal funds. In this case, since 39.6% of the project costs derived from these federal funding sources, 39.6% of the net proceeds must be allocated back to the community's CDBG program that is administered by the IURA. Future Use of Funds Reimbursed to CDBG Program It is important to note that the Carpenter Business Park project has not achieved its job creation objectives for low/mod income persons that made it an eligible activity for the use of CDBG and ARC funds. Each activity receiving CDBG/ARC funds must achieve one of the CDBG national objectives. One national objective is benefit to low/moderate income families through job creation. To meet minimum CDBG standards of$50,000 per LMI joie, at least six LMI jobs must be created to satisfy the national objective requirement. Therefore, unless documentation becomes available to show LMI job creation occurring at CBP in the near future, sales proceeds reimbursed to the City's CDBG program should be earmarked for a CDBG-eligible substitute activity or activities to achieve a CDBG national objective. Cc: Alan Cohen, Mayor Steve Thayer, City Controller H.M. Van Cort, Exective Director, IURA D. McDonald, Director of Economic Development H. Sicherman, H. Sicherman & Co., Inc. IURA staff Project file Chrono file q:l planning lstafflnelsliuralproperty dispositionlcarpenterhem on allocation of proceeds 9.23.02.doc 2 9/18/2002 Carpenter Business Park Uses & Sources of Project Costs City of Ithaca, NY Sources Uses FEDERAL LOCAL CDBG ARC UDAG CITY IURA NYSEG Totals I IMisc.Revenue I I Land Acquisition $126,386; $24,614 $35,000; $186,000 Professional Fees $5,014; $65,625; $2,905; $73,544 Financing costs $3,564; $3,564 BAN interest ; ; $10,9721 ; $10,972 Utility station ; ; ; ; $42,968 $42,968 Construction ; $150,000; $240,429 ; $390,429 Miscellaneous ; ; $1,875; $1,286; $3,161 TOTALS 1 $131,400; $150,000; $24,6141 $357,464; $4,191; $42,968 $710,637 %of Total 18.49% 21.11% 3.46% 50.30% 0.59% 6.05% 100.0% Federal Local $306,014 $404,623 43.06% 56.94% Abbreviations: CDBG=Small Cities Community Development Block Grant program ARC=Appalachian Regional Commission CITY=City of Ithaca,capital project#233,authorized by Common Council on 1/1/90 and 3/31/01 IURA=Ithaca Urban Renewal Agency NYSEG=New York State Electric&Gas Notes: 1. CDBG funding consists of following award:1981-$9,400;1982-$32,000;and 1984-$90,000 2. 1985 ARC funding award=$150,000 3. The Carpenter Business Park project included acquisition and development of a 2.25 acre community garden. 4. Uses of ARC funds are imputed,as funds were paid to City in lump sum after project completion. 5. Interest paid on bonds approximately equalled interest earned on invested funds prior to disbursement per S.Thayer,Deputy Controller,5/1/02. 6. Supporting documentation for IURA funded uses located at IURA. 7. Supporting documentation for all other project costs located at Controller's Office. Prepared by N.Bohn,IURA Page 3 9/18/2002 Carpenter Business Park Disposition Allocation of Proceeds from Property Sale Net Proceeds From Sale Income Expenses Net Proceeds Income: Sales Price-Building Links,Inc. $900,000.00 Option Price-Community Gardens property $70,000.00 Total-Fair Market Value $970,000.00 Expenses: Selling Expenses of City of Ithaca: Appraisal-NorthEast Appraisal $2,450.00 Subtotal-Selling Expenses of City $2,450.00 Selling Expenses of IURA: Brokerage Fee-Lama $35,000.00 Brokerage Fee-Edelman $19,000.00 Survey-T.G.Miller $1,750.00 Abstract-Monroe-Tompkins-Watkins Title $265.00 Deed stamps,etc.-County Clerk $3,898.00 Copying-Dataflow $77.55 Insurance,liability-Selective $427.50 Insurance,property-Ithaca Agency,Haylor $732.20 Legal advertisements-Ithaca Journal $152.69 Legal advertisement-Syracuse Newspapers $18.00 Legal advertisement-Democrat&Chronicle $172.35 IURA staff time,7/99-9/02 $13,490.41 Subtotal-Selling Expenses of IURA $74,983.70 Minus Total Selling Expenses: $77,433.70 Net Proceeds From Sale $892,566.30 Allocation of Net Proceeds' (Apportionment Based on Pro-Rata Project Funding) %of Total Share of Funding Source Project Funding Net Proceeds CDBG 18.49% $165,039.55 ARC 21.11% $188,401.31 UDAG Miscellaneous Revenue 3.46% $30,915.40 Subtotal-Federal: 43.06% $384,356.27 City of Ithaca 50.30% $448,977.92 Other Local-IURA&NYSEG 6.64% $59,232.12 Subtotal-Local: 56.94% $508,210.03 Total 100.00% $892,566.30 Page 4 Final Allocation of Proceeds From Sale of Carpenter Business Park Reimbursement of Selling Costs: City of Ithaca (±,�(, �a j(� /Q 0/pa $2,450.00 IURA $74,983.70 Federal Reimbursement: 39.6%Share of Net Proceeds to IURA-Restricted Use:CDBG Eligible Activities $353,440.87' 3.46%Share of Net Proceeds to IURA -Restricted Use:UDAG Eligible Activities $30,915.40 Local: 6.64%Share of Net Proceeds to IURA-Unrestricted Use $59,232.12 50.3%Share of Net Proceeds to City of Ithaca-Unrestricted Use �a °S �a� $378,977.92 City of Ithaca-Community Gardens,Retention or Receipt of Future Option Proceeds $70,000.00 Total Fair Market Value of Property $970,000.00 Notes: 1. "Carpenter Business Park Disposition"includes disposition of the Community Gardens parcels for the purposes of this analysis. 2. Per 24 CFR 570.505(b):Upon disposition of a CDBG asset,the recipients CDBG program shall be reimbursed in the amount of the current fair market value of the property,less any portion of the value attributable to expenditures of non-CDBG funds. 3. IURA sold Carpenter Business Park to Building Links,Inc.for$900,000 on 2/19/02. As part of the sales agreement, the City executed an option agreement with Building Links,Inc.on 02114/02 to sell the 2.25 acre Community Gardens property for$70,000 subject to approval of the lessee(Project Growing Hope,Inc.)or expiration,and non-renewal of the lease,in 2013. 4. Abbreviations: CDBG=Small Cities Community Development Block Grant Program(administered by HUD) ARC=Appalacian Regional Commission grant(administered by HUD) IURA=Ithaca Urban Renewal Agency UDAG=Urban Development Action Grant(administered by HUD) HUD=U.S.Department of Housing&Urban Development Prepared by N.Bohn,IURA,reviewed by IURA Budget&Admin.Committee 9.18.02 Page 5 CITY OF ITHACA—UNRESTRICTED/RESTRICTED CONTINGENCY ACCOUNT SUMMARY 2002 A1990 UNRESTRICTED ___ CONTINGENCY BALANCE UNRESTRICTED CONTINGENCY 10/29/02 $29-740.00 -----,-RESTRICTED CONTINGENCY Build ing-Commissioner and Deputy Building Comm. Salary increases Council $2,687.00 Council $0.00 Council $0.00 Council $0.00 Council $0.00 Council $0.00 Council $0.00 Work Environment Task Force Pol 00900 A1430-5700 Council $22,400.00 BALANCE RESTRICTED CONTINGENCY 10/29/02 $25,087.00 BALANCE UNRESTRICTED/RESTRICTED CONTINGENCY 10/29/0 November COUNCIL PROPOSED RESOLUTIONS: Planning Dept Neighborhood Incentive Fund $1,050.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 K-0-0 limk-00 Balance Unrestricted Contingency after November Proposed Resolutions $28,09Q.00 CITY OF ITHACA-UNRESTRICTED/RESTRICTED CONTINGENCY ACCOUNT ACTIVITY 2002 10/29/02 COUNCIL TYPE OF CONTINGENCY ACCOUNT MONTH AMOUNT CONTINGENCY TITLE DESCRIPTION TRANSFERRED TO Jan-02 No Activi Feb-02 $3,568.00 RESTRICTED Council To fund salary increase for Deputy Building Commissioner A3620-5105 Mar-02 $175.00 UNRESTRICTED To fund the cost of 5 women to attend Room Full of Sisters _ A1012-5435 $0.00 RESTRICTED Alp—,-0 $20,000.00 UNRESTRICTED To fund city clothing businesses marketing plan A6995-5435 $0.00 UNRESTRICTED $0.00 UNRESTRICTED Ma_y-02 $20,000.00 UNRESTRICTED To fund portion of National Development Council Contract A9950-5000 $0.00 --- $0.00 Jun-02 $1,200.00 UNRESTRICTED To fund the cost of CC/City Department Head Retreat A1430-5440 $0.00 UNRESTRICTED Jul-02 $17,600.00 UNRESTRICTED To fund the Building Department Senior Plan Examiner/position upgrade A3620-5110 $1,625.00 UNRESTRICTED To fund a portion of Ithaca Explorer post Training A3120-5445-5004 $12,600.00 RESTRICTED To fund ID System from Work Environment Task Force PO100900$12,600 A1430-5435 $0.00 -- $0.00 Aug-02__ $1,260.00 UNRESTRICTED To fund Local Match for the Drug Block Grant _ A1111-5435 $8,400.00 UNRESTRICTED To fund Historic Resource Survey_ A8020-5435 $0.00 - -- $0.00 - - -- $0.00 - — ----- -- $0.00 - --Sep-02 _NoActivity Oct-02 No Activity Nov-02 $0.00 UNRESTRICTED $0.00 RESTRICTED Council $0.00 RESTRICTED $0.00 RESTRICTED Council - - $0.00 - $0.00 Dec-02 $0.00 RESTRICTED Council $0.00 RESTRICTED Council -- $0.00 ---- SUMMARY AMOUNT UNRESTRICTED CONTINGENCY $70,260.00 ------- ------- _RESTRICTED CONTINGENCY 16 168.00 TOTAL CITY OF ITHACA 108 East Green Street Ithaca, New York 14850-5690 NIB OFFICE OF THE CHAMBERLAIN � ��t� (71; i�� I � t �°blGTEO Telephone: 607/274-6580 Fax: 607/272-7348 <� T 2 f 1.002 iLJ Ry ---- r To: Budget and Administration Committee,., ; From: Debra A. Parsons, City Chamberlain Re: Real Property Tax Exemptions for Senior Citizens and Persons with Disabilities Date: October 22, 2002 New York State has made changes to the law that allows municipalities to grant property tax exemptions to seniors and to persons with disabilities. The exemption is based on income. Current city code provides the maximum exemption for persons with income of less than $20,500 and the smallest exemption for persons with income of up to $28,900. State law has been changed to increase each of the limits by$1,000. If the city wishes to adopt the state changes, we need to do so prior to January 1 to provide Tompkins County Assessment with sufficient time to apply the changed criteria to the applications submitted by March 1. Both changes require a public hearing that could not occur before the December meeting of council. I have asked for a projection of cost from assessment that I hope to provide at the meeting, although any changes made not will apply until the 2004 city taxes. Tompkins County also passed a resolution pursuant to NYS law to allow automatic renewal of the senior citizen exemption in cases where the owner of the property has been exempt for five years. The New York law requires that a notarized statement of continued eligibility be filed with each tax paid under this provision. The intent is laudable. However,the reality is that each senior would need to file three affidavits, rather than one application for the exemption. From the city's standpoint, the administration of this provision will be problematic. We will need to identify the properties affected, mail the affidavits, and test each payment made to see if the affidavit is required. If the affidavit is not filed, we are required by the state law to correct the tax roll and bill the additional tax, time consuming on our part and costly on the senior's part. I am recommending that the city not pass a similar resolution. City seniors would continue to file an annual application for the exemption. "An Equal Opportunity Employer with a commitment to workforce diversification." �� Planning Department - Request Funds for Neighborhood Improvement Incentive WHEREAS, on May 3, 1995, Common Council established the Neighborhood Improvement Incentive Fund, and WHEREAS, the purpose of the fund is to give financial assistance to city residents who want to improve their neighborhoods, and WHEREAS, as envisioned by the Common Council, funds dispersed through the program have been used for a wide range of projects including neighborhood clean ups, newsletters, planting in public spaces and organizing neighborhood events such as meetings or block parties, and WHEREAS, experience of the past seven years shows that the fund effectively supports the efforts of residents to organize neighborhood events and activities, and WHEREAS, there has been no allocation to the Neighborhood Incentive Fund in the past several years, and funds previously allocated have been exhausted, and WHEREAS, there are several applications approved by the Neighborhood and Community Issues Committee of the Common Council for which there are no funds to reimburse applicants; now, therefore, be it RESOLVED, That a minimum of $1, 050 . 00 be allocated to the City' s Neighborhood Improvement Incentive Fund for the purpose of reimbursing the residents who have carried out projects described in the approved applications, and be it further RESOLVED, That Common Council hereby transfers an amount not to exceed $1, 050 . 00 from account A1990 Unrestricted Contingency to account A8020-5435 Planning Department Contracts for the purposes of funding the Neighborhood Improvement Incentive Fund. CITY OF ITHACA 108 East Green Street Ithaca, New York 14850-5690 DEPARTMENT OF PLANNING AND DEVELOPMENT APo� Q� H. MATTHYS VA-N CORT, DIRECTOR OF PLANNING AND DEVELOPMENT DOUGLAS B. McDONALD, DIRECTOR OF ECONOMIC DEVELOPMENT JOANN CORNISH. DEPUTY DIRECTOR OF PLANNING & DEVELOPMENT Telephone: Planning & Development - 607-274-655o Community Development IURA - 60--274-6559 Email: planning(a cin ofithaca.org Email: iura a cityotithaca.org Fax: 607-2--t-6558 Fax: 60--2'4-6558 CITY OF ITHACA NEIGHBORHOOD IMPROVEMENT INCENTIVE FUND The Neighborhood Improvement Incentive Fund has been established by the City of Ithaca to encourage those who are concerned about the physical and social quality of our neighborhoods to think creatively and practically about improvement projects. The fund was created to support a wide range of projects, including but not limited to neighborhood cleanup - (trash tags), planting in public spaces, organizing neighborhood events such as area-wide reuse events or block parties, and neighborhood meetings. The fund is not meant to substitute for neighborhood fund raising or capital improvements to neighborhoods; instead it is intended to hasten completion of small projects and to stimulate, or"seed," larger projects. Request for payment for event organizers or for hours spent making physical improvements are not eligible under this program - the aim is to encourage, not to replace volunteerism. Funds will be distributed in increments not to exceed $300 per year to any one group. Preference will be given to neighborhoods not recently granted money from the fund. Applications will be reviewed by the Community Issues Committee of the Common Council, which is authorized to approve expenditures for projects that fall within the guidelines. The Committee meets on the second Wednesday of the month. Applications should be submitted ten days in advance of the meeting to Leslie Chatterton, Neighborhood Planner, Department of Planning &Development, City Hall, 108 East Green Street, Ithaca,NY 14850. For additional infomation contact Leslie Chatterton, 274-6550. Requirements: 1.. The application requires a brief description of the proposed project, a project budget, including a verifiable estimate of the cost of items for which the request is being made, and signatures of neighborhood residents. For requests under$100, five signatures are required; for request over$100 twenty signatures are required. 2. The project must benefit the general neighborhood, not a select few residents. One competitive basis for evaluating requests will be the number of residents who benefit from the project. An Equal Opportunity Employer with a commitment to workforce diversification." �«! A RESOLUTION TO AMEND TCAT CONSOLIDATION AGREEMENT Whereas, TCAT has drafted a Strategic Plan for approval by the TCAT Board that identifies the formation of a single transit organization with one employer as one of three major objectives for the future, and Whereas, the TCAT Board of Directors is committed to working together to restructure TCAT as soon as possible to meet this important Strategic Plan objective and, Whereas, the existing April 1, 1998 TCAT Consolidation Agreement, which created the joint venture structure, will need to be terminated in order to create a different organizational structure, and Whereas, the Consolidation Agreement states: "At any time during the final ninety (90) days of the fifth (5'`) calendar year of this agreement, any party may give written notice to the other parties that it will withdraw from the joint venture without forfeiture of its share in the assets of TCAT, such withdrawal to be effective at the end of the sixth (6`h) calendar year after the effective date of this agreement" and, Whereas, the TCAT Board on behalf of the three partners does not wish to cause undue concern among employees and customers about the viability of public transit in the County and fears about job security which would be damaging to morale and make it more difficult to recruit drivers and retain other employees, and Whereas, given the rapid approach of the withdrawal notice period, one or more of the partners may feel they have to serve the notice to preserve their rights, and Whereas, this scenario can be avoided if the parties agree to amend the Agreement to extend the notice period throughout the calendar year 2003 during which time the parties will work to create a different organizational structure and terminate the Consolidation Agreement, and Whereas, the Consolidation Agreement states it can be amended "only by an instrument in writing in the same manner in which it was adopted," The City of Ithaca Common Council, the Tompkins County Board of Representatives, and Cornell University will all need to authorize their representatives to sign the proposed amendment, Resolved, that the TCAT Board requests the City of Ithaca, Tompkins County, and Cornell University to amend the first sentence of Section 8.1(c) of the Consolidation Agreement as follows: "At any time during the sixth (6`h) calendar year of this agreement, any party may given written notice to the other parties that it will withdraw from the joint venture without forfeiture of its share in the assets of TCAT, such withdrawal to be effective at the end of the seventh (7' ) calendar year after the effective date of this agreement." Page 1 of 2 Resolved further, that the TCAT General Manager, working with the Partner Representatives on the TCAT Board, is directed to convey this request to the City, County and University for action in as timely a manner as is possible. Adopted,this the 3'd day of October 2002. �G�UU �Q�n a-✓ Paulette Manos,Secretary/Treasurer Page 2 of 2 AMENDMENT TO CONSOLIDATION AGREEMENT WHEREAS, the City of Ithaca, Tompkins County, and Cornell University (the "parties") entered into a Consolidation Agreement dated April 1, 1998, that formed Tompkins Consolidated Area Transit("TCAT"); and WHEREAS, the Consolidation Agreement states in Section 8.1(c): "At any time during the final ninety (90) days of the fifth (5f) calendar year of this agreement, any party may give written notice to the other parties that it will withdraw from the joint venture without forfeiture of its share in the assets of TCAT, such withdrawal to be effective at the end of the sixth (6h) calendar year after the effective date of this agreement"; and WHEREAS, the TCAT Board voted on October 3, 2002, to request the parties to amend the Consolidation Agreement to change the dates by which such notice of withdrawal can be given to the other parties; and WHEREAS, the parties to the Consolidation Agreement agree that such change is needed for the reasons set out in the TCAT Board's resolution, which is attached hereto; NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein, the parties agree as follows. 1. The first sentence of Section 8.1(c)of the Consolidation Agreement is amended to read as follows: "At any time during the sixth (6h) calendar year of this agreement, any party may give written notice to the other parties that it will withdraw from the joint venture without forfeiture of its share in the assets of TCAT, such withdrawal to be effective at the end of the seventh (71') calendar year after the effective date of this agreement." 2. All other provisions of the Consolidation Agreement shall remain unchanged and in full force and effect. 3. This Amendment to Consolidation Agreement shall become effective as of the date it is fully executed by all parties. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized officers and sealed with their corporate seals. CITY OF ITHACA Dated: By: Alan J. Cohen, Mayor Pagel of 3 TOMPKINS COUNTY Dated: By: Tim J. Joseph, Chair Board of Representatives CORNELL UNIVERSITY Dated: By: STATE OF NEW YORK) COUNTY OF TOMPKINS) ss.: On the_day of in the year 2002 before me, the undersigned, a Notary Public in and for said State, personally appeared Alan J. Cohen, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon.behalf of which the individual acted, executed the instrument. Notary Public STATE OF NEW YORK) COUNTY OF TOMPKINS) ss.: On the_day of in the year 2002 before me, the undersigned, a Notary Public in and for said State, personally appeared Tim J. Joseph, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. Notary Public Page 2 of 3 STATE OF NEW YORK) COUNTY OF TOMPKINS) ss.: On the_day of in the year 2002 before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. Notary Public Page 3 of 3 Controller - Request to Extend Cooperative Energy Contract WHEREAS, the Common Council of the City of Ithaca has accepted electric supply since 2001 from Advantage Energy, Inc . (Supplier) , pursuant to a public bid issued by the Municipal Electric and Gas Alliance (MEGA) , of which this municipality is a member, and WHEREAS, the Master Agreement between MEGA and Supplier provides for up to three one-year extensions of such Agreement and of any customer agreements pursuant thereto at terms MEGA may determine are in customers' interests based upon changes in utility tariffs or market conditions, and WHEREAS, the conditions, duration and term, purpose and objective, scope and authority delegated, manner and extent of financing, organizational structure and manner in which personal property shall be acquired, managed and disposed of, are set forth in the customer agreement, and that both the original Master Agreement and such extensions are in conformity with the requirements of public bidding in New York State; now, therefore, be it RESOLVED, That the Mayor is hereby authorized and directed to execute and deliver to Advantage Energy, Inc. an Extension Agreement dated November 6, 2002 , attached hereto and made a part hereof, and RESOLVED at a duly convened public meeting held this 6th day of November, 2002 . City of Ithaca By: ATTTEST: City Clerk Title : Mayor