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Home My WebLink About2000-07-121 TB 7 -12 -2000 TOWN OF DRYDEN TOWN BOARD - MEETING July 12, 2000 Board Members Present: Supv Mark Varvayanis, Cl Ronald Beck, Cl Thomas Hatfield, Cl Charles Hatfield, Cl Deborah Grantham Absent: None Other Elected Officials: Bambi L. Hollenbeck, Town Clerk Jack Bush, Highway Superintendent Other Town Staff: Mahlon R. Perkins, Town Attorney David Putnam (TG Miller), Town Engineer Kevin Ezell, Zoning & Code Enforcement Officer Larry Carpenter PUBLIC HEARING RE: ZONING ORDINANCE AMENDMENT - REPEAL SECTION 500(7) 7:05 p.m. Town Clerk read the notice published in The Ithaca Journal on June 30, 2000: Please take notice that the Town Board of the Town of Dryden will hold a public hearing at the Town H all, 65 East Main Street, Dryden, New York, on the 12f day of July, 2000 at 7:00 p.m. prevailing time, to consider a proposed amendment to the Town of Dryden Zoning Ordinance. The proposed amendment is as follows: "Section 500(7a) of Article V of the Zoning Ordinance is hereby repealed ". That section provides land owned by governmental entities and educational institutions chartered by the State of New York are exempt from complying with the provisions of the Zoning_ Ordinance." Supv Varvayanis - Is there anyone here with any questions or comments? There were none. PUBLIC HEARING CAYUGA_PRESS_ HUD GRANT 7:07 p.m. Town Clerk read the notice published in The Ithaca Journal on June 30, 2000: Please take notice that the Town Board of the Town of Dryden will hold a public hearing on the 1999 Small Cities application submitted to the U.S. Department of Housing and Urban Development for a Community Development Block Grant for the Town. If received, grant funds would be loaned at a low interest rate, to Cayuga Press of Ithaca, Inc. to partially fund its expansion project. Prior public hearings were held on this application of January 6, 1999 and January 13, 1999. The former Town Supervisor, James F. Schug; is a minority shareholder in Cayuga Press and was the time of the public hearings and submission of the application. The president of Cayuga Press is also the son of the former Town Supervisor and all of the other outstanding capital stock is owned by the children and spouse of the former Town Supervisor. The public hearing will be held at the Town Hall, 65 East Main Street, Dryden, New York on July 12, 2000 at 7:15 p.m. at which time all interested persons will be heard. Supv Varvayanis - I have several letters and things to read into the minutes. The first is a memo or a letter from HUD to Mahlon Perkins. Page 1 of 45 TB 7 -12 -2000 Cl T Hatfield - Before you start that, you want to have her read Karl Heck's letter, mom please, and then ask Jim Hanson to speak and Peter Schug to speak. qW Supv Varvayanis - I'll get to the speaking after I read the letters. Supv Varvayanis read the following letters and notes (copies attached to these minutes): • Letter from Michael Merrill, Director, Community Planning and Development Division, US Department of Housing & Urban Development, to Mahlon R. Perkins, dated June 5, 2000; • Letter from Erica Evans dated July 12, 2000; • Letter from James Hanson, Tompkins County Planning, Department; • Letter from Robert H. Seeley dated July 7, 2000; • E -mail from Steven S. Robertson dated July 10, 2000; • E -mail from Dawn Potter dated July 12, 2000; o Letter from Karl Heck dated July 7, 2000; • Memo from Karl Heck to Jim Hanson dated January 6, 1999; Supv Varvayanis - I'd also like to read parts the New York State Law into the record. Definitions of contract means any claim, account or demand against or grievance with a municipality, express or implied. An interest is, among_other things, corporations,. any, stock of which is owned or controlled directly or indirectly by such an officer or employee. Section 801, conflicts prohibited: except as provided in Section 802, no municipal officer or employee shall have an interest in any contract with the municipality of which he or she is an officer or CLUVIVyee when such officer or employee, individually or as a member of the board, has the power or duty to negotiate, pay, authorize or approve a contract, or authorize or approve payment thereunder, audit bills, claims of contract, or appoint an officer or employee who has any of the powers or duties set forth above. Section 804 contracts void: any contract willfully entered into by or with the municipality in which there is an interest prohibited by this article shall be null, void and wholly unenforceable. Section 805 violations: Any municipal officer or employee who willfully and knowingly violates the foregoing-provisions of this article shall be guilty of a misdemeanor. James Hanson - You read my letter and you read it very well, thank you. Peter Schug, President of Cayuga Press, read statement (attached) Letters submitted from: • Jerry Dietz, of Taste of the Nation; • Rick Myers, Print Buyer, At- A- Glance; • Bruce S. Kane, CPA • Dennis Mastro, Regional Manager Community Outreach & Development, NYSEG Corp; • Anthony W. Huchko, Dryden Agway; • Charles L. Tallman, President, Bagelover's Inc. (recipient of a similar loan) e John W. Bailey, CIC, Executive Vice President, George B. Bailey Agency, Inc. • Andrew Cuomo, Secretary, US Dept of Housing_& Urban Development Peter Schug - I would like to thank everyone who showed up this evening to show their support for this worthwhile project and let you know that this is not just good for Cayuga Press, it's also good for our community. Thank you for coming. Supv Varvayanis - Before I call on someone else I would like to make a couple of corrections. At the January 6 meeting that was to publicize the availability of funding. It was not application specific. The meeting, one week later, which was specifically for the Cayuga Press application, there was no vote taken afterwards. Also, this meeting is not about potential conflict of interest. HUD has already determined that there is a conflict of interest.. This is just Page 2 of 45 TB 7 -12 -2000 to let the citizens know what the conflict of interest is and to decide whether or not the Board wants to continue seeking an exception. And finally, HUD has informed me that they have not made any decision. That means the money will not be necessarily forthcoming no matter what we decide here tonight. Michael Stamm, President of Tompkins County Are Development - read statement (attached). Supv Varvayanis - Again, I have to point out that today's meeting. is not approval or non - approval of the loan. It is whether or not we will seek an exception to the conflict of interest rule that we are in violation of. Ann Rhoades, Freeville - I'm sure that Cayuga Press is a very worthy organization. That it deserves support of TCAD and it deserves the support of the other businesses that have been cited, but I feel like the circumstances surrounding the application are kind of, they stink. And it annoys me that we don't fight for clean government. I feel like we need to stand up for real integrity and even though it makes economic sense, I think we need to stand up for integrity. I'm sure they are deserving. I would encourage them to apply again. I understand maybe their rules have changed. My question is if we don't give the money to Cayuga Press, do we have to give the money back to HUD, or can we use it for something else? Supv Varvayanis - We would have a time period not yet specified to look for another applicant. Ann Rhoades - Because I went to the planning meetings where the Cornell students did that whole presentation about development, and a lot of the residents were very upset that they said that they predicted over the next five to ten years only two percent economic growth in Dryden. And people were saying "that's exactly the problem, we need more" and I think we can't compete with Ithaca, but maybe there are some ways that we can make ourselves really attractive as a very wonderful bedroom community and small businesses. It would keep our community character. It wouldn't destroy our open land and it would allow us to produce some small businesses through some small microenterprise kinds of loans that would create the kind of community that we need and let Cayuga Press apply again at another time when the sleaze is kind of finished, when all of this taint isn't around. That's all I have to say, thank you. Tom Winch - I'm an employee of Cayuga Press, and this letter that I am reading was written by a group of Cayuga Press employees. This letter has signatures of all Cayuga Press employees. (letter attached) The members of Team Cayuga thank you. George Totman - I'm on the County Board. I'm not speaking because I'm on the County Board.. I.first_heard about-this when read .The - Ithaca Journal .and.it_amazed.me-because since I've been on the County Board, we've done everything we can to help local businesses survive and give out loans to keep them and increase the employment in the County. This will probably create at least 15 more new jobs. Since I've been on the County Board I think I can honestly say_ that I haven't voted politics, democrat or republican or whatever. It's for whatever we can do good for our community and it looks to me like there is a vendetta going here. I'm sorry to see it because I think that our communities and our towns and villages outside the city need all the help we can get to keep this employment going. It just bothers me to see why there is this controversy here, especially now that the conflict of interest, if there was any, appears to be gone. I can honestly say that I don't know Peter Schug, I don't think I've ever met him. But I look at the whole County as a whole, and the Town of Groton which I live in, and the whole County as we go through the County meetings and try to help people. I can't understand why one Town is trying to hurt one of their biggest businesses. I'm sorry. Page 3 of 45 TB 7 -12 -2000 Jon Orkin - I'm a long time resident of the Town of Dryden, but in the interests of full disclosure, I also am the attorney for Cayuga Press and have been for about 15 years. You've asked us to discuss the issue of whether there is going to be an exemption sought from the HUD grant and what I would like to do is just briefly address the resolution that is going-to be brought later to deny the loan to Cayuga Press, because it is based upon that supposition that there is a conflict of interest. It starts off "given that ". Now when it's "given that" one assumes that these are the facts. Well, what I would like to do is present the facts to the Board for their consideration. It says "The Cayuga Press application for a HUD loan through the Town of Dryden was facilitated by James Schug ". You heard Peter. That's not true. It was Peter Schug. It was the County. It was Karl Heck. It was not facilitated by James Schug. James Schug_recused himself from the process. That's not true. "James Schug is an 11% shareholder in Cayuga Press and his children and wife own the remaining interest in Cayuga Press." Well in the interest of full disclosure, that is partially correct. At the time of the application Jim did own 11% of the shares of Cayuga Press. Jim has for years, and I don't mind telling you people because it's an issue here, has been gradually going to the background of the government of Cayuga Press, and as of right now, which has nothing to do with this proceeding, Jim Schug as 6% of the shares of Cayuga Press. Why is that important? Because if you examine a portion of the General Municipal Law, which was not read here today, there are exceptions to the issues of the conflict of interest. An exception per se, by statute, is that if an individual has less than five percentum of the outstanding shares of the corporation it is as a matter of law, under the General Municipal Law of the State of New York, not a conflict of interest. So, Jim has 6 %. That has changed. Supv Varvayanis - Which is still more than five. J Orkin - I'll go back and forth with you here if you like, but that's not the issue here, Mark. I'm here at the public hearing and I'm presenting our position. If you want to debate, I'd be happy to go forward with that right now, but that's not what we're here about. But let me go on. I'll debate one issue with you. I'll debate one issue with the Board. Numbers 5, 6, and 7. "HUD funding is restricted from creating an unfair advantage to competing companies in the same community." Fair enough, but given that, "Wilcox Press in the Town of Dryden" (so now we are setting_ up the fact) _ "provides the same services so is a competitor in the same community" and "Wilcox Press is selling bonds to raise funds for a printing press ". Now irrespective of where that information came from and the basis upon which that is afforded as fact, I'd like to read into the record a letter that I have (presented to the board) dated July 11, 2000 to the Dryden Town Board from Wilcox Press, Inc . This is a letter from James C. Kirkwood, President, of Wilcox Press, Inc. (letter read into record, attached to these minutes). So that is 5, 6, 7, and 2 of seven. Now, it is true the relationship constitutes a conflict of interest per se, but the issue is whether or not, based upon the facts, this Board should ask and seek an exemption. An exemption that is my understanding that HUD will readily grant. So to say that it is a conflict of interest without dropping the other shoe that says, well if you present the proper facts there are facts and circumstances under State and Federal Law that exempts the organization from the conflict, it may be granted. Since October when this Board unanimously, with the exclusion of Jim Schug, approved the application with the understanding and the knowledge that that money was going to Cayuga Press, three things have really happened. One, Jim's interest has decreased. Two, Jim is no longer a member of this Board. So the impediments of going forward have been, to a large degree, visciated. The third thing I have to say that has occurred since October to now, the only other changed circumstance, is an election. And I submit to you that this is about economic development, this is not about politics. It's about the jobs for the people in this Page 4 of 45 TB 7 -12 -2000 room. There was no conflict of interest; that that should have been an issue then. And there is 10 no conflict of interest now, and I submit that the exception will be granted by HUD if you let this go forward. Cl Grantham - Mr. Orkin I have a question about one of the statements. Are you saying that HUD can also grant an exception or exemption to New York State Law? J Orkin - I don't want to get into a discussion of the differentiation with the Federal regulations and State law. I'm saying there is a process which the Town took submitting the application for the exemption to HUD which my understanding. precipitated the question of "we've received your letter, why don't we have one more public hearing just to be sure that everyone knows of the potential conflict of interest ". That's my understanding of it. Cl Grantham - And you are not claiming that HUD can offer an exception or exemption to New York State Law. J Orkin - No, of course not. There is a separation of powers under the Constitution. There is a Federal power and a State power. They can't do that. Joan Portaline - I live in Dryden. It seems to me that we have a determination that there is in fact a conflict of interest. I understand that's what we're saying. About Cayuga Press getting this grant for the Town of Dryden, I submit that had they not applied perhaps we could have pursued other people and we may very well still get the money and we can have a benefit, maybe 15 more jobs or more, by having-other businesses apply for the money. It seems that really what we are saying is do we want to continue asking for an exemption and what Deb was asking about State law I think Mark made clear when he read what stated that if there's a conflict there's a conflict. That's already been determined. So I can't support this. I think that it was approached poorly. That some things have changed conveniently_ since the application was initially made, and that the process is tinted and that we have to respect our government and I think that if they continue to ask for a waiver of a conflict of interest, that they are acting in disregard to the best interests of the public and of integrity. Thank you. Jean McPheeters - I'm the President of the Chamber of Commerce. I also serve on the TCAD Board and the Tompkins County Work Force Development Board. I'm here to ask the Board to consider applying for a waiver. Waivers are allowable under law. It's not they don't exist; it's not they are unusual. They are allowable. The reason I ask that is because in this community we have a terrible underemployment problem. Cayuga Press is one of the few places in the community that has good manufacturing jobs and supports and raises workers up from within. And we're excited about that Work Force Development Board, the Chamber, and TCAD. Those kinds of jobs in this community are scarce and we need them. I also want to applaud Peter Schug and Cayuga Press for making the application. It's an enormous amount of work to do. The money that's there is your tax dollars. It's our tax dollars that go to the Federal government and this is an opportunity for them to return to this community. Cayuga Press was the people who applied for it. It was no secret to anyone on the Town Board or in this entire community that James Schug_had been the president at one point of Cayuga Press or that Peter Schug was applying. They never changed their last names to fool anyone. It was there, people knew about it, people discussed it. It was out in the open. I ask you to consider this waiver. Les Cleland - I'm a resident of 36 Lee Road in Dryden, and I'm a member of the Southworth Library Board of Trustees. I'm here to share with the Board and with the public the generosity of Cayuga Press over the past several years to the Southworth Library and to support this request. This past year it was our desire to put forth a newsletter for the first time ever in this community to as many residents as possible. When we examined the cost of that, we found it was going to be prohibitive to do that within the budget that we have. At that time Page 5 of 45 TB 7 -12 -2000 Cayuga Press came forward and donated an extensive amount of printing so that we could establish that newsletter and make it available in the community. This is the type of organization that we are talking about. Is this the kind of business that we want to grow and prosper in our community? Do we want more employment? Do we want a greater tax base? Do we want a Board that acts on fact rather than political vendetta? I think we do. Doug Cotterill - I'm a local business person in Town and I'm here to support the Schugs. I have set here tonight, and I didn't know a lot of the facts before I came here. I've seen absolutely no fact that there was anything done underhandedly, behind closed doors. It's obviously all been done out in front. I think you all knew what was going on. You gentlemen have run a very reputable business in our community, you're looking to grow. I see no reason why we should punish Jim Schug's family and their business because some people are still fighting last year's election. Min Creasey, Lower Creek Road - I'm a neighbor of Cayuga Press and one disclosure of fact is incomplete in the application. Because I don't know whether you know or not, but Cayuga Press has two locations, one in the MA Zone with water and sewer and one in the RB Zone by variance without water and sewer. Our concern is the fact that I heard Peter Schug say they cannot expand without water and sewer because the employees have no proper drinking water. If this expansion is going to be in the RB -1 Zone, then I think we are looking at a situation that is far greater than just this HUD loan because we all know what water and sewer does to a neighborhood. We don't have any problems with Cayuga Press. They've been good neighbors and this is why we all supported the variance when they wanted to put their building there. I can't see how the MA Zone could expand anymore and I really would like to have Cayuga Press tell me right now, what zone are you planning to expand in? Supv Varvayanis - Peter, could you answer that? 0 P Schug - It's not the issue this evening._ I thought we keeping our discussion on the loan and that's not the issue now. M Creasey - It isn't just Hanshaw Road. I know that fact that even Mr. Hanson at a meeting didn't understand about the zoning. We fought very hard to get that RB -1 Zone and we really would like to know, because it is a big issue for us, for our whole neighborhood, for the whole west end of town. Supv Varvayanis - I think that if you don't have the resources to expand that would be an issue. P Schug_- You are talking- about two completely different issues. The expansion is in our current facility on the corner of 1779 Hanshaw Road, and water and sewer would be something that would be needed around.... M Creasey - So it is going to be in the MA Zone? P Schug.- Expansion of equipment, not a building, is what we are talking-about this evening. M Creasey - Right. So all your new employees will be in the MA Zone. P Schug - At 1779. I can't guarantee that. We have offices... M Creasey - It's not going-to be at Jim's house. Page 6 of 45 TB 7 -12 -2000 P Schug - No, that's the correct. The majority of them would be at the production facility. M Creasey - I thought that in your application the location of where this is going should be made clear, because it makes a big difference whether or not you can expand. And if you are going to be next to Jim's house you are going to have problems with water, right? You already do. P Schug - Thank you very much. I'll check on the application and make sure that's made clear, if I can. Elaine Young - I think we need to address the issue and not get sidebarred on something else. Martha Robertson - I'm concerned. It's intimidating, like you say, to speak after lawyers and public officials, etc, but I would very much agree with Ann Rhodes that the perception of straight government is extremely important, as well as the reality of a community's straight government. There are a great many of us that are extremely concerned about this. We aren't getting a paycheck from anybody associated with this application. I'm sure that the employees and their families that are here are genuinely in favor of this, but in a sense they have a conflict of interest as well. I think residents of the whole town have a different interest, and that may be in the sense that hoping that the Town of Dryden is not seen as a laughing stock. The Ithaca Journal editorial on Monday came out very strongly against this exception. Jim Schug is quoted "I don't think there has been any impropriety here. It's a wild goose chase, but you know government. You have to give 140% to prove you're on the up and up ". That was exactly the attitude that many, many of us heard from Jim before the election in November. And I think we spoke in November. I don't think we want that kind of politics anymore. I know he now has 6% interest in the business, etc, but I'm sure that Jim is a good enough father that he is still interested in what happens to Peter. Which one of us as parents ceases to have an interest in the wellbeing of our children and their future just because we don't own part of their business? I think that's just splitting hairs. I think it's clear that there is an interest in the generic sense. I think this was not the right thing for the Town to do in the first place. This one that the lawyer took action without approval and direction from the Town Board. Atty Mahlon Perkins - Says you. M Robertson - Well according to Mr. Varvayanis... Atty Perkins - Yeah, well, says him too. Cl T Hatfield - I think the record speaks for itself on that. This Board gave Mr. Mahlon Perkins direction and if you check the resolution of October 12, 1999 you'll find that Mr. Varvayanis was misinformed. Supv Varvayanis - Well, the resolution was read into the minutes. "Follow all regulations." How does that transpire into... Cl T Hatfield - Read number two again if you want to. Supv Varvayanis - Well, why don't you continue for now. M Robertson - I think that the public really did speak in November. We are not interested in, the Town as a whole and that's larger than the employees of Cayuga Press, is not interested in politics that involves the kinds of things that this includes. I think when Min talks about the expansion of water and sewer, I think these things are related. As was already Page 7 of 45 mentioned the buying of this Cayuga Press. I can just hea need water and sewer. These and sewer on Hanshaw Road putting that there and I thinl (Last few words are not clear) particular press is just the first in a several r it now, now we're going . to expand Cayuga things go hand in hand. The community is for a variety of reasons. Cornell University i : that this is just part .... TB 7 -12 -2000 steps of expansion of Press so naturally we not in favor of water s not in favor of Supv Varvayanis - I was asked to read number 2 of the October 12, 1999 resolution into the minutes again. "The Town shall comply with all HUD regulations including those identified by HUD as necessary for HUD to resolve any potential conflict of interest issues." I can see how some people might think that would mean that you could ask for an exception. On the other hand, asking for an exception other people could honestly feel would not be complying with all HUD regulations. If you do not apply for an exception, that is still following the regulations. I did not go out of my way to say Mahlon broke any laws or defied by trust. All I said was I was unaware of the application and it was an honest mistake I'm sure on all our parts. Cl T Hatfield - Well The Ithaca Journal made it sound like a lot more than an honest mistake, Mark, and that's a disservice to one of our professionals that we hired as a board, and for one, I totally, totally disagree with that type of political swipe at a professional we've retained. Supv Varvayanis - Well,. I think a good professional, knowing my interest in this, would have let me know what he was doing. Cl T Hatfield - How many times have you talked to Mahlon since January 1? Supv Varvayanis - I haven't counted. What's your point? is Cl T Hatfield - My point is did you ask him to come and sit down with you and go through all the things that were open and in process on January 1. There was a lot that was going on in this Town up until December 31, 1999. At the moment most of it has come to an absolute halt. Paul Rachetta - I'm a resident of the Town of Dryden and I just wanted to say that we get into discussion involving Mr. Perkins, we get into discussion about water and sewer, and we're off the topic here. You have stated more than once that we are here to voice our opinion whether we believe the Board should support an amendment to this. As a resident of the Town of Dryden, not on the Cayuga Press payroll, I'm telling-you we need this loan to go through. This has to happen. We need it. And I'm asking you to put your political agendas aside, to put any personal discrepancies aside. To put other issues aside and focus on whether or not we should amend this loan proposal, and I'm saying absolutely, without question. Art Berkey - I reside in the Town of Dryden at 1205 Ellis Hollow Road. I read The Ithaca Journal editorial. It said red flags in the rise in the Town. There have been several that have been raised for me this evening. One is the difference in issues of fact between the things that were said by Mr. Schug that there was approval, that there was no conflict, etc and also another point that has not been made. That is it's my understanding that the interest of this loan is 21/o. Am I correct? Supv Varvayanis - Correct. A Berkey - Alright. The average going rate now for business loans is about ten percent. So on $400,000 a difference of 8 %. So that means there is a taxpayer subsidy of $32,000 (400 Page 8 of 45 TB 7 -12 -2000 times 8 is $32,000). This is of concern. This is of concern. I do have a statement that I want to read. (Because Mr. Berkey interjected into his written statement and did not read some portions of it, his verbal statement follows and his written statement is attached) A Berkey - I fully support the HUD determination of Mr. Schug's conflict of interest in funds for the expansion of Cayuga Press and I strongly oppose that approval for an exemption to the HUD determination. This has nothing. to do with how good a neighbor or how economically the Cayuga Press is. Supervising Schug, my understanding, he signed the application for HUD funding to partially pay for the expansion of Cayuga Press owned by Mr. Schug and his immediate family clearly constitutes a conflict of interest- -not "a wild goose chase" as characterized by Mr. Schug. Also apparently HUD agrees, which is why we're here this evening. Also Town Attorney Mr. Perkins sending a March 2000 letter which I understand was not specifically non -Board authorized to HUD urging.this exemption indicates there may be continuing influence and involvement by Mr. Schug or his family. I also believe that this conflict of interest should have been obvious to the Dryden Town Board majority in 1998 -99. In fact Councilman Deborah Grantham did personally mention this to me as a concern that she had. Cayuga Press should not receive the HUD funds given the continuing-conflict of interest and the Town Board should seek another applicant within our Town following an open process. For the interest of time, I will not read all of it, but there is a perception among-many Town of Dryden residents of a conflict of interest by some board members. I simply point to the voting to increase the Town Clerk's salary 10% immediately after the election in my opinion is strictly unethical. Whatever that salary was... Audience member - What does that have to do with this? A Berkey - I'm pointing out the ethical, the whole taint of the Town Board in total. In summary, upholding the HUD ruling of conflict of interest and denial of funds to Cayuga Press is needed as a significant step to reinstate ethical standards and open government in the Town of Dryden. I request a copy of this statement be sent to HUD as part of the record of the public hearing. Thank you for the opportunity to be able to speak this evening. Catherine Brown - I live in what is sometimes called the 8 Square School district on Hanshaw Road. I would like to second Min Creasey's concern about why this expansion is being not only allowed, but promoted in an area which is an RB -I Zone. When Cayuga Press came there, the residents of the area at that time, we did not object because Jim's own house was right there too. But Cayuga Press owns property in the other part of Hanshaw Road, the part that goes north in the corner of Lower Creek Road. If they were expanding there, I don't think anybody in our neighborhood would mind. But to put more business in the RB -I Zone in an area there opposite the Cornell properties and so on, open land. People in that area are really quite concerned about this. Charles Evans - I'm a member of the Tompkins County Board and I represent the district in which Cayuga Press is situated. I have sat and listened to this long discussion and listened to both sides of the issue. My understanding of the process was that there was full disclosure of all information during this entire process. And I will also point out to Mark that he did give full disclosure of the New York State laws. You read the parts that were convenient, but not all of it. However, beyond that, if we get rid of the politics, the issue is whether or not this loan is in the best interests of the Town of Dryden, and I heard somebody say just a moment ago in discussion this is a beautiful bedroom community. And it is. But that's also what's wrong with it. Because when your kids grow up they move away because there is no work for them. This is a project that will create at least 15 jobs for which people do not have to have PhD's or college degrees and which people can stay in this community when they graduate from high school and not have to run off somewhere else, possibly to North or South Page 9 of 45 TB 7 -12 -2000 Carolina. You know, I like to see my grandchildren, but some of them are in Arizona and the rest of them are in Michigan. There was not employment for them in this community. And I think that is something we seriously need to think about. We need a balance for this community which is seriously lacking. This Town, or a good share of it, is a bedroom community for Cornell University. It needs to be much more diverse and this is an opportunity to do it. Reba Taylor, Village of Dryden - I'd like a couple things clarified. One, supposedly this money is on the table for Cayuga Press. There is nothing in the Village that would qualify for a HUD grant. I have worked with several business owners in the Village who have property that they want to locate a business on. We can't find anybody that wants to come and we've been actively looking. I don't know what the confines of this is, and maybe Mr. Hanson can answer me a couple questions. If HUD does not give this money out to Cayuga Press, was it earmarked to be given to the Town of Dryden for Cayuga Press, is it done in a round of grant applications so therefore if it isn't coming out now is it gone. Is it null and void? J Hanson - Specifically what happens here is the application was made for Cayuga Press to add jobs. The important thing is to add those jobs in low and moderate income situations. The Town Board has to decide up or down, either this is voted to go forward or it's rejected at this point. If it's rejected, then they have to look at what's called an amendment to the HUD application and then what you do is go through the procedure all over again. You hold hearings, you take applications, and go through that process. If it goes through then HUD makes a determination on the conflict issue. R Taylor - Because there were no previous applicants, is there a time limit on how long this money can stay in a holding pattern while the Town looks for someone else to take it? J Hanson - I'm sorry, I'm not privileged to that information at this time. R Taylor - That's the part that I didn't understand either. I didn't know how long or if there was a possibility this money was actually going to stay. There's a good possibility it could disappear. M Stamm - I can answer some of that only in part, but a HUD - program is one of the most incredibly bureaucratic government programs that exist. I don't recommend many companies use it. I give credit to Cayuga Press for making, it this far through the process. But we and other communities across the State and across the country have an incredibly difficult time in getting_private sector companies to fit into the unbelievably bad HUD bureaucracy. My opinion is that if these funds aren't used for Cayuga Press, we are going to have a heck of a time finding_ pother company that fits all the obscure bureaucracy in this Town to use the HUD program. Jim Holman, Beam Hill Road - How many people here are employed or connected with Cayuga Press? (show of hands) J Holman - How many of the employees live in Dryden (hands) Ann Rhoades - I know I've spoken already, but I'd like to propose a compromise. I've been very moved by what I've heard from the people who work at Cayuga Press who are here and spoke and also people in various capacities in the County who spoke and I'm listening to what you said. I think the concern for open and clean government is really basic and important to democracy, but could we have a compromise? It seems like it's really important for Cayuga Press to get this money. It seems like it's good for them, it's good for Dryden, it's good for the County, and that we can build off of it. And you heard how opposed I was to it a few moments ago. I would like to ask each one of you then to be absolutely vigilant that this Page 10 of 45 TB 7 -12 -2000 new board is clean as a whistle and that we never permit the kind of sleaziness that we sort of ,10 didn't pay attention to for a long time. I feel like if we can commit ourselves to clean government it is clear that this loan should go. It seems obvious that the money should go to Cayuga Press. My real concern is that we all dedicate ourselves to no more conflicts of interest. No more we can't tell if this is a conflict of interest or not, or whose family's involved. I call on all of you to raise the standards for government in this Town. Dana Abbey - I'm employed with a company that employs about 35 people in the Town currently. Our assessment on our building-is over a million dollars, so I'm not the largest taxpayer in the Town, but I would encourage the Town to do all they possibly can to relieve the tax burden on businesses that do try to make a living in this Town. I want to go back to a point that you've said once, I heard Joan Portzline say it once and a lady back here, that they're tired of sleazy government and not being- open and up front. What was on the application that was not disclosed? Can you fill us in on why this is a political matter? Because I'm sitting here as a complete stranger not knowing and I'd like to leave tonight knowing what was not disclosed that's so sleazy, in your opinion. A Rhoades - In my opinion it was, I respect what Peter said about his father sort of backing off and not participating... D Abbey - Was it on the application that he was a shareholder? A Rhoades - No, that's not what bothers me. What bothers me is a whole pattern that goes into the water and sewer, that goes into ... D Abbey - We're talking about an application. A Rhoades - I know. If you just look through that narrow window, you can't see a pattern of abuse. D Abbey - God forbid this Town bring any new business to us. A Rhoades - No, I'm absolutely in agreement with you. M Robertson - That's not the point. D Abbey - That is the point. You sat there and said that they did not disclose information on their application. M Robertson - I didn't say that. D Abbey - Joan Portzline did and she said it was sleazy in nature. I want to leave knowing tonight what was not disclosed. M Robertson - I said that just because somebody doesn't have a certain threshold of financial interest, doesn't mean he's not interested in what his son does. And... D Abbey - It was disclosed on the application. A Rhoades - I don't know how it got past them. Cl T Hatfield - It. didn't. 0 Uproar in the audience - Page 11 of 45 TB 7 -12 -2000 Supv Varvayanis - Excuse me. Audience member - Why don't we take the politics out of it and move on? Supv Varvayanis - I agree. Let's take the politics out of it. Laws were broken. Let's drop this. Les Cleland - Do you want to hear the comments Mark that you made to me when you came to my door in this public meeting? Do you want to hear those? Supv Varvayanis - Sure, go ahead. Les Cleland - About the sleazy operation Jim Schug was taking_ on? You didn't know who you were talking to. You came to my door and you said I want to be the Supervisor and I asked you why. And you said well, because I think there's some people on the board who are operating in an inappropriate way and I asked you what was the way that they were inappropriate. You couldn't give me any answers. You just said well it's my opinion. This whole this is our opinion. Let's deal with the facts of what has happened, what has been disclosed, whether or not that's appropriate, and let's move on with the business of this meeting. Supv Varvayanis - I agree fully with that statement. Nancy Amato - I don't live in Dryden, but I want to say do you realize what those words mean? Sleazy is a pretty bad word. And I'm going-to speak for that family. I've known that family 20 years and they are Christians and they are a good, decent family and I can't begin to tell you the wonderful things they do for the poor, for other people who are in need. They give out of their pockets to people. Sleazy is a disgusting word and I'm appalled that people should put that word with this family. It's horrible. M Robertson - Excuse me. I'm not a Christian, I still vote and I'm a resident of the Town of Dryden. N Amato - What does that mean, you're not a Christian? M Robertson - I'm Jewish, and I think that's irrelevant. N Amato - Well so is all of this stuff about water and sewer. M Robertson - It just bothers me that that is some sort of a moral standard. Excuse me, I don't think of it... N Amato - Well you're attacking their moral standards. M Robertson - Yes. I was at the debate at the Varna Community Center when one of the people at the meeting... Uproar in audience- -many unintelligible remarks. Cl T Hatfield - Is this relevant to this hearing? Supv Varvayanis - Excuse me. I'm still running this meeting. M Robertson - I wasn't finished Mark. Page 12 of 45 TB 7 -12 -2000 Charles Evans - I would like to suggest at this point that you stop running this public • hearing and close it. I think all the facts that are going to come out that are facts have happened by now. Cl Beck - Mr. Chairman, I move we close the public hearing. Cl T Hatfield - Second. Supv Varvayanis - Is there any discussion? Audience member indicated there were people who would like to be heard still. Cl Grantham - I think there are a few people who haven't spoken. Supv Varvayanis - There are several people who haven't spoken, and I might point out that when you put in the message to HUD that there were several people who were not allowed to speak, that will not play favorably. Cl Beck - Relevant to discussion, will you run the meeting so that the discussion stays to the point of this meeting? Any further discussion? Supv Varvayanis - I would like to. Cl Beck - If you'll do that I'll withdraw my motion. Cl T Hatfield - I'll withdraw my second. Keep it on point. 0 M Robertson - I wasn't finished. Supv Varvayanis - I'll come back to you, but I think you need some time to calm down. Elaine Young - People should have one time to speak and let everybody speak, then come back to the ones that have something to add to it. In fairness to everybody. Mac Larsen, 1675 Ellis Hollow Road - I've listened to the discussion tonight and changed my mind on some points that I had been wondering. about before coming here. There is apparently a motion that you are going to have to vote on after closing the public hearing and one of the things that has been raised I think is criticism of some of the facts in the whereas's or whatever it is of the resolution. That speaks to me as something that needs to be examined and anything that isn't truly fact should be deleted. I think that takes a little time. That's one reason why I suggest you shouldn't vote tonight on that particular thing. The other is that I think a little time for reflection is important too. Specifically if this were to come up with a closely divided vote, HUD would still I guess have the authority to make a decision whichever way the close division is. I think it would be better if some greater unanimity could be obtained. That speaks to me for a reason for taking some time to do this with care and not after a heated discussion. If by any chance you do decide that things should-be opened up again, I'd like to record my view that Cayuga Press should certainly be allowed to submit its proposal again. Even if there should be any competition, they would have a big advantage because it is already done for them. And now, as is often pointed out, there wouldn't be the conflict of interest that there was. That's all I wanted to say. Elaine Young, 46 East Main Street, Dryden - I would like to thank the board for having this public hearing to bring- in all these issues that fully disclose to the public any misconceptions that there were any improprieties. I hope the board would consider granting the exception so the process can go through. The Town does need this development for future Page 13 of 45 TB 7 -12 -2000 employees, for current employees, for the moral. It gives the employees currently there more O opportunities and better insight, maybe possible advancements. Secondly by having.the loan repaid to the Town, it's the Town's money. You are opening up for future development to help other businesses. It's just smart government to go ahead and resolution to have the exception granted by HUD and bring this money to the community, to the Schugs, to Cayuga Press, so it can be recycled back into the community and let our dollars be here instead of some other community. M Creasey - It's a political reason, I keep hearing- about disclosure and I would like to say the location where this money is supposed to go was not disclosed, and I would like to have that location. Bill Ackroyd, 75 Orion Drive - I have scribbled some notes here listening to all this legal and emotional and political rhetoric going on tonight. I just want to summarize what I think has come out of this. I think they made a full disclosure. They are a Town of Dryden business, they pay taxes, they have a payroll, right? They made full disclosure. There is no contention for the loan money, right? It will be paid back to the Town of Dryden, right? To me this is a no- brainer. I think we need to forget partisan politics and forget your hidden agendas and get back to doing business the way it should be. I think it should be granted. Deborah Levin - I live two doors down from Cayuga Press. They've been good neighbors. They are a fine family and all that. That has nothing to do with the issue and we don't know where they are going to expand. Part of it is in a residential area where I live. The other part is around the corner in an MA Zone. We don't know where the expansion is going to take place and nobody's willing to tell us. M Robertson - As I said before, just the idea of the question of was it sleazy politics or not, that was why I raised the issue of the kinds of things that Jim Schug said in public before the election when he told somebody who was interested in open access to the minutes of the board meeting that she ought to get a life. This was in public. So this is the sort of thing. You ask about the pattern, there has been a pattern. In answer to somebody's question before, can I ask how many here are residents of Dryden? (show of hands) I would just also like to say that I would like to ask Mr. Schug, Peter, is it true that you have tried to advocate for the water and sewer district because the employees in your business do not have adequate water and sewer now. Is that correct? D Abbey - What does this have to do with the agenda? M Robertson - If you are talking about adding.... E Young - I don't think you've taken control of the meeting, Mark. Supv Varvayanis - Well, I, this is.... M Robertson - If you're adding 15 employees and you've said that there is already not adequate water and sewer in the business, then that is exacerbating the problem, so I'm confused. Supv Varvayanis - This issue was brought up, and I thought I explained that if there is inadequate resources for an expansion that would have an effect on the potential benefits and negative effects of the grant, and HUD will look at that when they considering granting an exception. M Robertson - Well, I'm just curious now. We're not talking about a building expansion.... 0 Page 14 of 45 0 TB 7 -12 -2000 Supv Varvayanis - You've asked your question. Mr. Schug do you have a response? Anybody else? M Robertson - Do I understand that that would exacerbate an existing_ problem? Is that right? Adding 15 employees will .... Supv Varvayanis - He has previously stated on the record that they did not have enough record for cleaning the equipment or their employees to flush toilets. J Orkin - Wait. I take an exception to your paraphrase of what Mr. Schug said, and with all due respect, it is not a zoning hearing, it is not a hearing before the BZA and the time for an expansion, any kind of an expansion, will be fully and fairly heard before the BZA. M Robertson - But this application would expand the workforce at a business that is on the record as being supposedly in adequate in terms of water and sewer. I think that's relevant. Supv Varvayanis - I'm going to move on. I made the opinion, take it shortly, that HUD will look at this. I could be wrong. That's just why I allowed that question. E Young - HUD will look at what's in the application, I believe. Supv Varvayanis - I believe they will do that too. Yes, Mr. Berkey. A Berkey - I just want to say that I'm disappointed that if we do have full disclosure that we did not get an answer from Mr. Peter Schug. P Schug - I'd like to get the meeting moving on to where it supposed to be. The expansion is actually equipment which will be located at our facility on the corner of Route 13 and Hanshaw Road, which has water and sewer currently so there wouldn't be any difficulty with adding any new equipment or the people there as there's already water and sewer. It has nothing to do with our offices. Supv Varvayanis - Anybody else? (no one spoke) Okay, Ill close this public hearing (8:45 p.m.) Cl T Hatfield - Before we go on to the next one Mark, I'd like to introduce a resolution as long as everybody's here, and ask for it to be seconded. later. hour. Supv Varvayanis - Well, I already closed the hearing. We can get to your resolution Cl T Hatfield - No, I'd like to take it up now... Supv Varvayanis - At 7:30 p.m. we had a person who is now waiting here for over an Cl T Hatfield - Well, if you'll allow me to read this into the record and second it. Supv Varvayanis - I will not. C1 T Hatfield Well then I make a point of order motion to take it out of order with respect to the agenda. Page 15 of 45 TB 7 -12 -2000 C1 Beck - Second that motion. Supv Varvayanis - Is there any discussion? RESOLUTION # 182 - POINT OF ORDER CI T Hatfield offered the following resolution and asked for its adoption: RESOLVED, that this Town Board hereby declares that the agenda be taken out of order so that a resolution with respect to the Cayuga Press HUD loan application may be introduced. 2nd Cl Beck Roll Call Vote C1 Beck Yes C1 T Hatfield Yes Supv Varvayanis No Cl C Hatfield Yes Cl Grantham No Cl T Hatfield - Now, if you'll allow me to introduce this resolution. RESOLUTION # 183 - RESOLUTION. OF SUPPORT FOR HUD TO GRANT AN EXCEPTION TO CONFLICT OF INTEREST RULES Cl T Hatfield offered the following resolution and asked for its adoption: WHEREAS, the Tompkins County Planning Department on behalf of the Town of Dryden solicited applications for the 1999 round of the U.S. Department of Housing-and Urban Development (HUD) Community Development Block Grant (CDBG) funding competition, and WHEREAS, the opportunity for all interested and qualified businesses to apply for CDBG funding for economic development was duly advertised by the Tompkins County Planning Department according to the requirements of HUD, and WHEREAS, after learning of the opportunity to apply for CDBG funding through such public advertisement, Cayuga Press of Ithaca, Inc. contacted the Tompkins County Planning Department about submitting an application for CDBG funding to assist in the expansion of Cayuga Press which application was reviewed and facilitated by the Tompkins County Planning Department, and WHEREAS, a public hearing was held by the town Board on January 6, 1999, at which no one spoke, and WHEREAS, a second public hearing was held by the Town Board on January 13, 1999 at which the only speaker was Karl Heck of the Tompkins County Planning Department who explained the application of Cayuga Press and the existence of a conflict of interest between the Town Supervisor, James F. Schug, and Cayuga Press, and WHEREAS, the relationship between the Town Supervisor and Cayuga Press was the subject of an article in The Ithaca Journal and such relationship is widely known in the community, and WHEREAS, the Cayuga Press application was the only economic development application for CDBG funding in Tompkins County for the 1999 round of funding, and Page 16 of 45 TB 7 -12 -2000 9 WHEREAS, HUD approved the CDBG application based upon the representations and information submitted in the application and with full knowledge of the existence of a prohibited conflict of interest under HUD regulations promulgated at 24 CFR 570.611, and WHEREAS, HUD, by letter of September 10, 1999, forwarded to the Town its Funding /Approval Agreement and advised the Town that if the activity is in fact deemed a conflict, the Town may request an exception to the conflict of interest prohibition, and WHEREAS, HUD has promulgated rules and regulations for granting exceptions to prohibited conflict of interest rules which are found at 24 CFR 570.611, and WHEREAS, by resolution adopted October 12, 1999, the Town Board authorized the Deputy Town Supervisor to execute the Funding/ Approval Agreement with HUD and further resolved to comply with all HUD regulations, including those identified as HUD as necessary for HUD to resolve any potential conflict of interest issues, and WHEREAS, HUD, by letter of November 16, 1999, advised the Town that the Town should request an exception to the conflict of interest prohibition under 24 CFR 570.11 by submitting correspondence requesting an exception of 24 570.611, and WHEREAS, the Town Attorney, as directed by the October 12, 1999 resolution and the November 16, 1999 letter from HUD, requested an exception to the conflict of interest prohibition pursuant to HUD regulations, and WHEREAS, HUD has requested that the Town Board hold a third public hearing to insure that the public is totally aware of the Cayuga Press application, and WHEREAS, it now appears that the issue of a conflict of interest was discussed by the Tompkins County Planning Department with HUD even before the submission of the Cayuga Press application, and WHEREAS, full and complete public disclosure of the interest of former Town Supervisor, James F. Schug, in Cayuga Press has been made to HUD and to the public, and WHEREAS, after receiving the comments of the public at the July 12, 2000 public hearing, and having given due consideration to the facts, and after having taken into consideration the nature and extent of the conflict of interest, and after weighing all the facts, and considering the economic benefit to the community, including the creation of 15 new jobs targeted to benefit low to moderate income employees, NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. That the Town of Dryden supports the granting of an exception to the conflict of interest rules by HUD. 2. That the Town of Dryden requests that HUD proceed forthwith and with all deliberate speed to complete the funding of the Cayuga Press application. 3. That the Town Supervisor shall forthwith transmit to HUD a copy of the minutes of this public hearing, a certified copy of this resolution and copies of any documents submitted by the public in connection with the July 12, 2000 public hearing and that a copy of the Supervisor's letter of transmittal and all submittals be mailed to the Town Board members. 2nd Cl Beck Supv Varvayanis - Discussion? Page 17 of 45 TB 7 -12 -2000 Cl Grantham - I have some comments to make. I don't think that the issue here ever has been disclosure. I don't think there was ever any question but that the relationship between Jim Schug and Cayuga Press was disclosed. The issue is that, regardless of disclosure, it remains a conflict of interest under, I believe, state law and under HUD regulations. I think that we're making a mistake to continue with the request for an exception to the HUD regulations because that does not answer any questions about the New York State regulations about conflict of interest. I have no quarrel with Cayuga Press as a good employer, a good business, and a good neighbor. My concern is that we will be in violation of New York State Law if we continue with this. vote. Supv Varvayanis - I agree fully, and I. assume that will-end the discussion. Call the Roll Call Vote Cl Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham - We're voting on calling the vote. What are we voting on, this resolution? B Hollenbeck - Yes. C1. Grantham_ Supv Varvayanis - Did I vote yes or no? Cl Grantham - You voted yes. Supv Varvayanis - Can I change my vote? B Hollenbeck.- Do you. want it to be no? Supv Varvayanis - Yes. IIM Supv Varvayanis - I will now close the hearing on Subsection 7 of Section 500 of the Dryden Zoning Ordinance. Now we'll have a continuation of the L & A Site Plan Review, SITE PLAN REVIEW (continuation from 10- 12 -99) ANDREY & LUBOV VOROVYOV 1495 DRYDEN ROAD Town. Clerk read-the notice published in The Ithaca_Journal announcing the continuation of this site plan review. A Vorobyov - I'd like you to approve this. I think I've done everything you asked me to do. I just adopted two children. I need money. I have to work you know. Supv Varvayanis - Does anyone on the board have any questions? Kevin do you agree that everything that was requested has now been submitted? K Ezell.- There was some question-regarding the drainage plan. I_think_that Dave would better answer those. Buffering was suitable, power source and traffic plan seemed to be there. Page 18 of 45 I� TB 7 -12 -2000 Some question still arises to the idea of control of motor vehicle fluids, that's on crushed stone. He answered what he believes to be acceptable to him,_ but is that acceptable to the Board? I'm 10 not aware, have we seen your license? (license produced and copies made) D Putnam - There are two minor issues with the grading and drainage plan. With minor modifications the drainage plan is acceptable. (Map shown to board members and applicant and desired changes pointed out.) What the plan shows and what is stated in there is they will keep the existing contours. All water will flow right out the driveways instead of into the detention pond. They just need to be modified so that at some point in here it tips the water into the pond. The other thing is somewhere above the parking they need to create a diversion ditch to take the water that is coming downhill, so it doesn't run across your site, down around the edge of your parking lot, and back into the roadside ditch. The pond is not designed for the upland water anyway. Cl Grantham - What about the motor vehicle fluids that might come from the cars? A Vorobyov - They will be serviced prior to placing them on the lot. K Ezell noted that the license address is Dryden - Harford Road and cannot be transferred until Mr. Vorobyov has site plan approval. A building permit will be required for any building on the site in the future. Road cuts are DOT approved. Cl Beck asked whether it was recommended something different than a crushed stone parking lot should be required to address motor vehicle fluids. D Putnam noted that more fluids will run off a paved surface than gravel surface. With a gravel surface you'll have contaminated soil and it's a toss up which is better. . Mr. Vorobyov reiterated that vehicles will be serviced off site and Cl Grantham stated that the Board could not ask for more than that. D Putnam stated that the ditch across the back will lessen the chance of whatever leaks from the cars from moving across the site. A temporary office building will be on the site, not requiring sewer & water. Cl Beck - Looks like there are about a half dozen items here to be addressed. One is the drainage plan. Cl Grantham - The lighting is okay it says. The landscape plan, species and planning schedule could be a condition of approval. Cl Beck - So the lighting has already been accepted. Item 5 is not a problem, item 6 is building permit is required, that's normal procedure. The buffering in item 9, consider maintenance of existing vegetation between the business and the home to the west, I guess that would be a condition included in the approval. With those conditions I think we can move forward-with. it.. Cl Grantham - I think so. SITE PLAN APPROVAL - VOROBYOV Cl Grantham offered the following resolution and asked for its adoption: RESOLVED, that this Town Board hereby grants site plan approval for Andrey and Lubov to operate an automobile sales business at 1495 Dryden Road, subject to the following conditions: 1. The drainage plan modification suggested by TG Miller Engineers be adopted Page 19 of 45 TB 7 -12 -2000 and implemented; 2. Exterior facility lighting should be as found in the photograph provided; 3. A species and planting schedule be provided for landscaping; 4. All motor vehicles be serviced off site, and leaks are repaired before vehicles are brought to the lot; 5. Applicant provide plans for an office building that meets building code; 6. Applicant shall maintain existing vegetation which effectively buffers the home to the west. 2nd Cl C Hatfield Roll Call Vote Cl Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes A Vorobyov - Can I put a few cars on the lot now, and then work on the other things? I have to make some money. Atty Perkins - Theoretically he can't do that until he has site plan approval and you've just given him the conditions he has to meet for the building department to give him approval. Cl Grantham - I think legally you can't until you change the drainage. K Ezell - Until you receive approval from our office you shouldn't, but as soon as the changes are met you can. Cl Beck - According to Henry we have to do SEQR. A Board reviewed the Full Environmental Assessment Form and completed Part II (contained in the project file). RESOLUTION #184 - SEQR NEGATIVE DECLARATION - ANDREY AND LUBOV VOROBYOV Cl Grantham offered the following resolution and asked for its adoption: RESOLVED, that this Town Board issue a negative declaration based the SEQR review for the site plan approval of Andrey and Lubov Vorobyov for automobile sales at 1495 Dryden Road. This is an unlisted action and the Town of Dryden is the lead agency in uncoordinated review. The Supervisor is authorized to sign all necessary documents. 2nd Cl C Hatfield Roll Call Vote Cl Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes- Cl T Hatfield - This should have been done before we granted the site plan approval. Cl Grantham - We should add the standard conditions of approval since we are redoing it. 0 Page 20 of 45 TB 7 -12 -2000 Atty Perkins - There is an item on the agenda to revise the standard conditions of • approval. You can do it by adding the standard conditions of approval and deleting the non- transferrable portion. RESOLUTION # 185 - SITE PLAN APPROVAL - VOROBYOV Cl Grantham offered the following resolution and asked for its adoption: RESOLVED, that this Town Board hereby grants site plan approval for Andrey and Lubov to operate an automobile sales business at 1495 Dryden Road, subject to the following conditions: 1. The drainage plan modification suggested by TG Miller Engineers be adopted and implemented; 2. Exterior facility lighting should be as found in the photograph provided; 3. A species and planting schedule be provided for landscaping; 4. All motor vehicles be serviced off site, and leaks are repaired before vehicles are brought to the lot; 5. Applicant provide plans for an office building that meets building code; 6. Applicant shall maintain existing vegetation which effectively buffers the home to the west. 7. Standard Conditions of Approval (9- 8 -98), excepting #10 shall not apply. 2nd Supv Varvayanis Roll Call Vote Cl Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes RESOLUTION # 186 - APPROVE ABSTRACT # 107 Supv Varvayanis offered the following resolution and asked for its adoption: RESOLVED, that this Town Board hereby approves Abstract # 107, vouchers #487 through #555, totaling $107,739.41. 2nd Cl Grantham Roll Call Vote C1 Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes C1 Grantham Yes Supv Varvayanis - Lets move on to reviewing Subsection 7 of section 500. I'll move it. RESOLUTION # 187 - AMEND ZONING ORDINANCE (REPEAL 50017 )) Supv Varvayanis offered the following resolution and asked for its adoption: RESOLVED, that Section 500(7) of Article V of the Zoning Ordinance is hereby repealed. Page 21 of 45 TB 7 -12 -2000 2nd Cl Grantham Cl T Hatfield_- I have a_question,_ for_.the record. The repeal_of.the. subsection-brings the appropriate bodies previously exempted from local government so that you at least have to consider them. Atty Perkins - Right, obviously they are some that continue to be exempt from complying with the Zoning Ordinance. Cl T Hatfield - And this says we want them to comply. Atty Perkins - It is going to be approached on a case by case basis. Cl_ Grantham_ - It doesn t. change_ state law exemptions. Atty Perkins - That's right. CI T Hatfield - But it changes our local ordinance and says we'd like them to apply. Atty Perkins - We'd like to exercise as much authority as we can. Roll-Call-Vote Cl-Beck- Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl-Grantham- Yes CITIZENS PRIVILEGE OF THE FLOOR Larry_ Carpenter_- would_ like_ to- know. the _ status_of_the_union_negotiations. Supv Varvayanis - The union and the Town are at impasse. PERB supposedly is assigning_a mediator, but it now is resting- in PERB's hands. L Carpenter - The last employee information and policies guide I have is dated October 8, 1996 with an addendum in the back with an educational policy of the Town. Has this been amended in any way, shape or manner since I received it? Board believes that it has not been amended since then. Susan Boutros - I wanted to give you an update on our progress. I believe I have located a commercial modular that would meet New York State Code. I just wanted to be certain that that was within the type of structures that would be approved. It is not a mobile home, it is actually a building that is currently in place about an hour's drive from here. It's commercial and it's legal in its current setting. We are looking that contingent on your inspection of it and getting clarification. Am I correct in assuming that a commercial modular unit would fit within the categories which could be approved? K Ezell - If it's a HUD approved structure it could be used in that location. That's my understanding. about. Supv Varvayanis - There was a specific commercial certification that Henry was talking Page 22 of 45 TB 7 -12 -2000 K Ezell - DHCR has a specific commercial one, plus they can have commercial ones that could be just plain modular and have its own set of stamped plans that comes with it, that would be stamped by a registered architect or an engineer. office. Cl T Hatfield - So the question is not for the Town Board, it's for the code enforcement Cl Beck - They need to get the specifics for this particular unit and submit them. S Boutros - When I looked at the minutes of the meeting, the things that appeared to be requested were a design for the runoff and a foundation plan. Those were the two items in addition to the documentation. I guess I just need to clarify that. I am unclear as to when I have to come to this group for approval and whether or not I can proceed. Cl T Hatfield - Are you talking to Henry on a regular basis? Cl Beck - Most of these questions really should be directed to the building office. S Boutros - The thing that I am concerned with is I thought that I could come back tonight and get certain approvals... Cl T Hatfield - Not unless Henry has had the opportunity to look at the issues that you were asked to address in advance and has been able to advertise it for public hearing. S Boutros - This is why. The minutes of the last meeting. said that discussion was to be • heard again tonight. And when I talked to Henry about a week ago, he said we couldn't be heard again because it wasn't advertised. That wasn't the impression that was given to me the last time, nor was that what was written in the minutes. It's sort of news. I did not bring plans with me, but I did not proceed to do plans because Henry told me last week we couldn't do it, but when I read the minutes it said you could. Supv Varvayanis explained that the board expected to and had given a list of things to Ms. Boutros that she was to supply to Henry. Ms. Boutros stated she did not receive a date by which to accomplish that and was unaware of the need to advertise. Cl Grantham told Ms. Boutros that she needed to do her best to address the issues that the Board raised in June and take that to Henry, go through it with him and he will determine whether it is ready for another public hearing, and if so, will advertise it. It was explained that the zoning office would need to advertise ten days in advance of the hearing. The next Board meeting is August 9, so Ms. Boutros will need a complete application filed by July 24. Cl Beck instructed her to communicate with ZO Slater with respect to whether the unit meets requirements. Ms. Boutros would like to change the drainage on her property and wonders if she needs approval to do that. Cl Grantham noted that she needed to provide a drainage plan in connection with his application. Ms. Boutros wondered if she only wanted to change the drainage, not in connection with this application, if she needed permission, and Cl T Hatfield told her to talk to David Putnam. Rick Young - Advised the Board that the gentlemen who had appeared at last month's meeting requesting money for the fire investigation team was acting on his own, was not sent by the fire chiefs, and if they were to need something like that they would approach the Board in a more professional manner. Mr. Young wants the Board to know that the fire chiefs are not upset with the Board and are not pushing for this request. • Page 23 of 45 TB 7 -12 -2000 Cl Grantham asked if there is presently sufficient fire investigation capacity and Mr. Young stated that right now they can call the State Police and the Sheriffs Department. It would be nice to have some individuals who could investigate some of the small things, but once it is determined to be an arson situation, they have to call the police in anyway. They are doing fine now. The fire investigation team has been inactive for a couple of years and has recently shown some interest. They have been given the opportunity to reorganize, but one individual seems to be taking over the matter and causing some problems in the fire service itself. The statement he made that the Town of Dryden chiefs backed him was not true. Mr. Young feels that they do not need any help from the Town at this point. Matt Shulman, publisher of the Lansing Community News - Most of what they cover does not affect the Town of Dryden, but one issue does, its membership in the SJS Ithaca area sewer plant, and possible future membership in the intermunicipal sewer authority that would extend into Lansing. He attended a meeting on June 7 and reported on it in his newspaper. The following meeting (June 29) he was unable to attend and in talking with members afterward to report on it, he was told they had made some progress on the technical issues, and secondly, they had decided to ban the press from attending. any further meetings when the municipalities met with the DEC. (Newspapers distributed to Board containing a news story and an editorial, his opinion.) He is concerned with the decision to exclude the press. The rational was: (1) even though each individual board has delegated individuals to attend and represent the municipal in policy discussions and negotiations regarding_a municipal agreement no one municipality has a quorum, and that falls outside the requirements of the Open Meetings Law, and (2) action cannot be taken by the group (action must be taken by the individual municipalities), that falls outside the Open Meetings Law. He has been in touch with the Committee on Open Government and requested an advisory opinion and spoken with Robert Freeman. He will not have an advisory opinion before the next meeting at the end of this month. He is visiting all the Boards beforehand to plead his case. He has been told that a couple of people got in touch with Bob Freeman and asked if they could ban the press. Mr. Freeman's response was that they could because of the above reasons. Mr. Freeman stated that for the past three years he has tried to get legislation introduced to close this 'loophole ". It is termed a loophole because while it is true that no action is taken, in effect decisions are made. The people involved are delegated by their respective boards. The DEC director has agreed to speak to his legal staff and review this. Mr. Shulman would like the Board to read the news story and opinion and ask themselves even if the law permits the exclusion of press, the water and sewer issues are important and should the exclusion be permitted. These are the most important public works projects because of development, public health and protection of Cayuga Lake Watershed. Mr. Shulman will attend the next meeting, and if asked to leave will decide what his next step is. Chris Easton, Chief, Varna Fire Department is asking for another tactical frequency for the Varna Fire Department. The Ithaca Fire Department has shifted from what the County Coordinator has termed fire one direct, that they share with Cayuga Heights and Varna. It has caused a lot of cross - company communication during fire calls. Mr. Easton has filed an application for Varna to get its own tactical frequency that they would use in addition to fire one direct, which they would need for mutual aid. They would use their own frequency for all internal communications during a call. The FCC has asked for letter in support from the , governing body. RESOLUTION #188 - LETTER OF SUPPORT FOR VARNA FIRE DEPARTMENT Cl T Hatfield offered the following resolution and asked for its adoption: • Page 24 of 45 TB 7 -12 -2000 • RESOLVED, that the Supervisor is hereby authorized to send a letter to the Federal Communications Commission in support of the Varna Fire Department's request for a radio frequency. 2nd Cl_Grantham Roll Call Vote COUNTY BRIEFING Cl Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes Charles Evans - Things are about the same in the County as reported last month. The budget process will be coming up quickly and after that County Board activity will increase dramatically. One issue of interest is that Mary Pat Dolan gave a presentation to the Board of Health regarding a dental clinic for medicaid individuals and people in the insurance gaps. It is nearly impossible to get dental service in Tompkins County for individuals on medicaid. One of the problems is there is about a 35% no -show rate in this population. That will also be a problem if there is a public clinic. A solution is necessary, but none is readily available. This issue will probably be in the papers. If anyone has suggestions, he would like to hear them. It is a serious problem. Cornell University is convening their first data review meeting for Lake Source Cooling. That will take place the last week of July or first week of August. He will report on that meeting. COUNCIL PRIVILEGE OF THE FLOOR Cl Grantham - Regarding Peregrine Hollow Subdivision and the sewer meter pit. Heidi Salseider, on the partners has spoken to the Board, and came to the Planning Board to talk to them. Joe Lalley has spoken with Mark and I on how to resolve the issue of how to pay for the sewer meter pit and at the same time getting the subdivision moving. The subdivision is not an asset as it is now. To not work with them to finish it would really make mess. What we thought would work and wanted to suggest to the board was that the original agreement, I think, has expired with Varn Brothers. That was to have some money escrowed every time a certificate of occupancy was awarded, and I don't think they want to do that anymore. What we'd suggest is to put the cost of the sewer meter pit on the sewer district tax bills and let the developers and the people they are selling lots to proceed with development as planned in the subdivision. I guess we need to take action in order to do that and give relief to the developer. Cl T Hatfield - I'm not opposed to trying to find a way to solve the problem. I think we should ask counsel to check out comptroller's issues. Cl Grantham - Did you get a copy of that Mahlon? Atty Perkins - No. Cl Grantham - Did a copy of that get mailed out, Mark? I never got it. Cl T Hatfield - I think there are some issues there. I don't think the taxpayers need to ,• pick up the developer's costs. Page 25 of 45 TB -7- 12-2000 Cl Grantham - 1 think they would anyway because they just would build the costs into the house. 0 Cl T Hatfield - It doesn't affect anyone other than Peregrine Hollow it may be a solution as long as there's not a problem with one of the many edicts that the comptroller has in this area. It's a complicated area. Cl Grantham - One of the conditions with the Town of Ithaca is that we don't have to have a sewer meter pit until there are 10 homes or a certain volume of sewage passing through. They estimate on the number of homes. Cl C Hatfield - What's your opinion, Mahlon? Atty Perkins - First, the agreement has not expired. It is still in force and effect. It is still a valid agreement and it still can be enforced. All that has happened is the time has gone by by which the developer was to have completed the construction of the meter pit and dedicate it to the Town. It was to occur on the happening of one of three events, whatever occurs first. The first time the combined sanitary sewage from connections in the subdivision reached 3,000 gallons, done by estimates based on average daily usages, or at such time as 12 dwelling units are connected the sewer line, or November 7, 1998. I wrote a letter to Jim Schug on December 21, 1998 giving him an opinion and background on all of this. To summarize what I said, "As I see it, the Town has a couple of remedies. You could simply wait and collect sufficient funds as certificates of occupancy are issued until there are funds available to cover the cost of construction, or the sewer district could undertake the construction, bond the costs and assess the costs associated with the project back to the benefited parcels" which I think is what you are discussing-now. "In either event it does not appear to me that the Town has any exposure for the costs of the necessary work in connection with the installation of the meter pit, flow meter and other appurtenances." Now, there is another issue about this subdivision which has come up because of these discussions. That is that although the original plat was filed, only part of the lots are being assessed as lots. For some reason the Division of Assessment has not got all the lots showing, and I think that is something that we want to correct so that this cost can be spread out. Cl Grantham - I think that's a result of when the subdivision was approved by the Planning Board, there was some business about a Phase 1 and a Phase 2, and the Phase 2 was quite a number more lots than Phase 1 and I think that somewhere in the filing, all the Phase 2 lots got dropped off,. and_I don't know how. that_happened. Atty Perkins - No, that's not it. Dave Putnam - Phase 1 got split into two pieces, lA and 1B. Cl Grantham - And the other lots never got filed as a result of that. Atty Perkins - No, that's not true. The entire plat was filed. I've been to the Clerk's Office, I've inspected it. I know it's there. For some reason the Division of Assessment has only assessed as lots Phase 1. The phasing. only had something to do with determining what kind of security and how much security the developer would have to give to the Town because he hadn't completed the improvements yet. Cl Grantham - What's on the assessment now? Atty Perkins - I think just 1A, 20 lots or something.like that. But the entire plat is filed in the Clerk's Office. is Page 26 of 45 TB 7 -12 -2000 Supv Varvayanis - How do we correct this mistake? Atty Perkins - I think that someone needs to point out to them that this plat is there, they should be assessing all of the lots that are shown on the plat because all of them are approved. What were approved for construction, for building_ purposes, was only this first phase because that's all of the improvements the developer proposed to put in in the first instance. They wanted to get going. Cl T Hatfield - And this sewer district is specific to that entire project? Atty Perkins - Yes. Cl T Hatfield - We'd have to bond, I assume, if we were to build this meter pit, or would agree to wait until the twelve and then have to bond for it, and those dollars could be spread over 20 years or whatever, and it would be assessed against all lots. Atty Perkins - That's right. Cl T Hatfield - That's why its important to correct that. Cl Grantham - Are the lots that the assessment office recognized being taxed for the sewer district? Atty Perkins - They are I think for the purchase of additional capacity, but that has nothing to do with the infrastructure that was installed by the developer, only the capacity. The developer installed the infrastructure and then dedicated it to the Town. Cl Grantham - But only those lots that are recognized by the assessment office have been taxed for the capacity, so they are carrying the whole burden. So presumably that would get evened out. Atty Perkins - That's the point. If you want to do this, you want to spread this cost out against all the lots that will be benefited by it. The district is already in place. You will be increasing the facilities. I can't imagine, based on what the estimates were back in 1995, that that's going to be a problem, especially if you have more lots to assess against.. Cl C Hatfield - She's upset about her costs now. When she gets them all assessed the way they are supposed to be, she really will be in trouble. Atty Perkins - There is a flip side to that that's not so great. That is that you're going to start assessing lots that can't be built on. Guess which ones aren't going to get the taxes paid on. But it is going to give relief to those people who are in Phase 1 and right now are being assessed the entire burden. Cl Grantham - I think that only the properties in the Phase lA have been disturbed. I could be wrong about that. But her concern is that she's saying that she can't sell those other lots in Phase IB, that she has a potential buyer but they won't buy it if they have to put aside that chunk of money per lot. Atty Perkins - That's really a cost of the development and could be factored into the cost of the lot. • Cl Grantham - I understand that and I'm not saying I want to do anything for them that we wouldn't do for someone else. It's just that we need to somehow get that place sorted out. Page 27 of 45 TB 7 -12 -2000 Supv Varvayanis - If it's acceptable to go that route, am I authorized to write her a letter 0 and make the proposal? Maybe she doesn't want to do that either. rolls? Cl Grantham - Should we sort out the other lots first and get them on the assessment Cl C Hatfield - Well we better know what we're talking about. Cl T Hatfield - I think we need a little more information before you're ready to make them an offer, Cl C Hatfield - Someone needs to go to Assessment and get it straightened out. Peregrine Partners owns the lots that aren't on the roll. They are paying taxes on it as one large undeveloped parcel. Cl C Hatfield - I think we should have Mahlon to go to the Clerk's Office and Assessment Office and follow up on it and get it straightened out and come back to us with a proposed draft that Mark can send off to her that sets some discussion in motion that might resolve this. Atty Perkins - It only takes six more lot sales and they have enough to build this thing. If they put aside the $5,500 which is required each time a CO is given, once you've given six CO's there's enough money there to do it for the Town. What this does basically is make them accountable for their promises. They promised to do it and they didn't want to put any money aside because they didn't have it and this was the method the Town Board and the developer came up with to solve that problem. This was the assurance the Town got that it would be done. You're in control right now because you don't have to give CO's there without $5,500 toward this construction. Supv Varvayanis - They are in Chapter 11, Does that affect the contract at all? Atty Perkins - No. Cl Grantham - She claims that the Varn Brothers themselves are under a restraining order, that they don't have any authority. That doesn't affect that agreement does it? Atty Perkins - No. This was executed prior to the time there was any litigation between any of the partners. Understand also that a lot of the issues that she raised here have already been litigated and tried. She's just complaining_ about the result. Cl Grantham - I understand that and I'm not trying to answer all her complaints. I'm just trying to get that subdivision moving. It's a mess. Atty Perkins - It is a mess. I think we need to resolve the plat issue first and get everything assessed or find out why it's that way. Cl Grantham - How about we do that first and then propose... Supv Varvayanis - We've already suggested Mahlon take care of that. Cl Grantham - We've been working on this Conservation Advisory Committee local ordinance. I submitted a draft and Mahlon looked at it. I got it this week. I have a couple of questions, Mahlon. One of the things that you changed was you took off the part about Page 28 of-45 TB 7 -12 -2000 • changing the Conservation Advisory Committee to a board once there is an open area inventory and map. Atty Perkins - That procedure is already covered in State law (239 -y) Cl Grantham - Okay. I guess the other thing I noticed was that I had in here that they could receive staff and clerical assistance from the Town, and you took that out. Is there a reason for that? Atty Perkins - I think that you want to make sure when you adopt this you do it with the idea that you may have create another position. I'm not sure, you'd have to talk to staff, but I think they've got their plates pretty full. Without their input and without looking at the budgetary impacts of how that works, I don't think it's fair to impose on them additional requirements unless the staffing, requirements have been addressed. I think you do that through the budget process. Cl Grantham - Other than that, I guess it's okay. Board will review this and address it in the future. Cl Grantham - I passed out a memo on the Ithaca Tompkins County Transportation Council. We are starting a transit study to determine how to improve public transportation in the Northeast Sub -area We'll be asking for NYS Dept of Transportation funding-for this study, but we have to show local match. So all the municipalities that belong to the Transportation Council are asking. for resolutions saying that they will contribute a local match. They are saying $3,000 to $5,000. Ithaca and Lansing did their resolution for up to $5,000 for the NESTS transit planning project. I'm asking-that you approve this resolution tonight. Cl T Hatfield - This is to study public transportation? Cl Grantham - The NESTS study had nine recommendations and one of them was to determine what could be done to improve public transportation in the NESTS area and this is to do a study toward that. Cl T Hatfield - We can pass the resolution, but it may not get encumbered this year. Maybe in the next budget year. Cl Grantham - Probably next year. We had two options. We could take it out of the money that we have now, but that would mean bumping another project that was planned or we could ask for money in 2001. The DOT rep to the Transportation Council recommended 2001. In order to ask for the money you need to show there will be local match to make a strong proposal. That's why the resolution is up front. Cl Beck - Is there an official request at some time, something from some board at some point in time that will tell what the study is, what they do? Cl T Hatfield - I think you're putting the cart in front of the horse. You're asking us to commit to a number that we don't have quite done. Maybe we need to do a resolution that we'll support the request for the grant and will authorize when requested up to $5,000. I don't know how you commit yourself to commit. Atty Perkins - You often approve things not to exceed. • Cl Beck - The question is, will we get a more formal request? Page 29 of 45 TB 7 -12 -2000 Cl Grantham - Yes, when it comes to time to actually contribute this money it will be when we have a DOT grant. Once we've got the matching state money then there will be an invoice or something from the Transportation Council. RESOLUTION # 189 - CONTRIBUTE TO ITCTC NESTS TRANSIT PLANNING PROJECT Cl Grantham offered the following resolution and asked for it adoption: RESOLVED, that this Town Board supports the Transit Planning_ Project by the Ithaca Tompkins County Transportation Council in the Northeast Sub -area, and will contribute an amount not to exceed $5,000 as local matching funds upon presentation of the proper documentation. 2nd Cl Beck Roll Call Vote Cl Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes Cl Grantham - Some citizens on or near Whitted Road contacted me. I handed out a memo tonight about a fill ordinance. There is excessive filling-on a property on Whiffed Road. It has been causing problems in the neighborhood. They asked if we could develop a fill ordinance and I thought given some of the other problems that we've had in Town with filling lately that this may be something we should look at. I'm proposing that we start working on this. Mahlon already has some information about such ordinances. Atty Perkins - I told her I'd give her a couple of examples of other ordinances. Cl T Hatfield - Our ordinance covers storage materials, not fill. Atty Perkins - Typically they work that small projects are exempt. There is usually a threshold up to a certain size. It's based upon sound engineering practices, and discretional authority of staff. Beyond that it usually needs a permit after a public hearing. Supv Varvayanis - The one we are talking about was several thousand cubic yards. Cl C Hatfield - Are they filling it for a purpose? K Ezell - To level and make the lot more usable is my understanding. Cl Grantham - That's what they've told the neighbors. K Ezell - It's been in the process for many years I think. Cl Grantham - About 3 years. I was supposed to start developing a billboard study because we have this moratorium on. You've got some stuff that went on by e- mail,_ including a proposal from George Frantz to do a study for us. He is a former assistant planner for the Town of Ithaca and is consulting now. He is proposing to do a town -wide inventory of all off - premises advertising signs, review approaches to the issue by other jurisdictions in New York and elsewhere, including review of model ordinances, review of relevant court cases. There are some references for planners that catalog that sort of thing. A review of available literature on the effectiveness of billboards as a marketing tool, and recommendations on steps the Town of Dryden could take to address the issue. He is estimating that he can do the study for a cost Page 30 of 45 TB 7 -12 -2000 not to exceed $4,925 and the end product would be up to 100 bound copies of the study with its recommendations. He has factored in attendance at up to five public meetings on the matter and he is happy to discuss it with us. Cl T Hatfield - Have you seen his professional credentials? Does he have enough weight if we get into a court battle to be recognized as an expert? Cl Grantham - I. think so. Cl T Hatfield - When we did the adult entertainment we did a similar study and it turned out to be a very good thing. I think that's where we need to go. Cl Grantham - He's a registered planner, AICP, and I know that he worked for the Town of Ithaca for twelve years. That could be one thing we ask for, for his credentials, for his resume. Cl T Hatfield - I think the scope of what he is proposing to do and what you've asked us to consider seems appropriate. We definitely need some sort of study that covers the issues and recommendations. I don't know what kind of recommendations he might make, but I would like to see an executive summary of what he might find. Cl Grantham - For example in the adult entertainment law, one of the recommendations was where to place the MAA Zone. One of the things he would look at would be the size of the signs, are they advertising businesses in Dryden or out of Dryden, what zoning districts are they in and that sort of thing. He'll look at what other people have done. is Atty Perkins - Does his proposal include obtaining direction from the Town Board on what way the Town Board wants to go and maybe a model ordinance or model legislation? Cl Grantham - He says recommendations, I assume that could include model ordinance. Supv Varvayanis - I believe there are Towns that have banned them outright. CI Grantham - Ithaca is one. Cl T Hatfield - I just think you need a good solid survey, what the options are, what the meaning is. We need to look at who uses them. There is definitely in a community our size a need for a low cost advertising medium for our local businesses. There is a lot of people that go by those billboards. I think we need to look at the whole issue. Do we need them, and if so, where do we put them? Just like we did with the MAA Zone. We need to get the facts in front of us in order to have this discussion. If this gentlemen will work with us, give feedback and keep us in the loop along the way, then I think it would be a good thing. Cl Grantham - Well ask Mr. Frantz to do a formal proposal and present it next month, including his credentials. We can then ask if his recommendations would include a model ordinance. Cl T Hatfield - We've set a 180 day limit, 30 days have gone by. If you can go back to him and ask those questions and get that information together. If we needed to we could circulate some information and we would set a date in between to get together for a half hour and get together with this gentleman, get the questions answered satisfactorily and let's get started. This is a fair amount of work. We ought to find a way to get the study started. • Cl C Hatfield - Mahlon, it is legal to ban them? Page 31 of 45 TB 7 -12 -2000 Atty Perkins - Yes, the ones that are there you have to allow to amortize their investment over a period of years and I presume he will address that in his study, and if you choose to require the removal of them, what will pass constitutional muster as far as phasing them out and how long a period of time and so forth. Supv Varvayanis - Do we have to allow them to amortize billboards that have been up for 30 years? Atty Perkins - That's one of the things that he has to address,_ how old are they, what's a reasonable period of time for the life of that thing. Supv Varvayanis - What about if Deb just gets a formal proposal in writing including what he will do, and he submits it to all of us and if it is acceptable.... Cl T Hatfield - I'm comfortable with that. There are questions like Mahlon raised. I don't mind doing that to get started. If he's willing to allow us to meet with him on the 9th of August and have an opportunity to raise some of these questions and he's not going-to be so locked in to in his scope of work, if he's willing to let us define this and as he makes findings to bring . them to us. I think it needs to be an interactive process is what I'm saying. There's an advantage to someone local as opposed to before when we had someone from Albany. Cl Grantham - I'll ask him to do a formal proposal and I'll mention the things that have been raised tonight and I'll ask him to get it to us at least a week before the next board meeting so that it can get out to everybody. I'll ask him to get it to the Town Hall the week of the 24th and to come to the August 9th board meeting. If he can't come to that meeting, I'll ask him when-he can.come. ATTORNEY Atty Perkins - I handed out to you a draft of a proposed local law requiring reimbursement of engineering fees and legal fees in connection with site plan review applications, special permit applications,_. subdivisions and planned unit developments. I'm not suggesting anyone introduce it tonight. I'm just giving it to you to review and think about and consider. What it does is it requires developers to deposit with the Town sufficient funds to cover the fees that would be charged to them in connection with engineering services and legal services for the four different kinds of developments I previously mentioned and the payment of those fees and the review of vouchers and so forth. Similar legislation has been upheld in the Fourth Department and this is modeled after another local law which has already been tested. I have expanded it, however, a little bit to cover all of those four types of developments, which his a defined term in there to include, again, site plan review, special permits,. subdivisions and planned unit developments. It is not for any action tonight, it's just a proposal. Cl C Hatfield - Those things. right now they don't pay for, right? Atty Perkins - They pay for engineering for some of them. Cl Grantham - What prompted this? Atty Perkins - A court case that upheld a local law enacted by the Town of Onondaga whereby they withheld approval until there was payment of these fees. They didn't just get an agreement by the developer to pay them, but they actually have enough teeth in the thing to first require a deposit, and second to withhold approval until such time as they_ are paid. Page 32 of 45 TB 7 -12 -2000 • Cl T Hatfield - That and I think the discussion we had recently regarding fees at Varna II, which is what we asked Mahlon to look at that we were concerned about. Cl Grantham - In that case there are some restrictions set by SEQR law, and this cannot... Atty Perkins - This would not supercede SEQR, but there are lots of cases where we don't get into an environmental impact statement so we have lots of time spent by engineers reviewing full environmental assessment forms and things like that. Cl Grantham - How would it impact a situation like Peregrine Hollow? Would it have helped? Atty Perkins - You are talking about two different kinds of fees. You're talking about fees paid to professionals for the town, and you're talking about infrastructure fees that any developer has to incur as part of the costs of development. Atty Perkins - The other thing I gave to Deb and she has given to you are proposed modifications for a local law establishing the Conservation Advisory Council and if Deb or anyone has any questions I'd be glad to answer those. I have also have been working with Jack Bush on addressing_a highway driveway work permit system and I've given you a proposed local law that Jack and I have been working on. This is designed to address new situations and the correction of situations where someone has to install a culvert or driveway onto a Town highway. Basically it suggests that the Highway Superintendent propose to the Town Board regulations about how this would work and what Jack is going to propose I'm told is that the Town will do the work, then we know what • materials are used and so forth and he has some specific ideas about what the cost of that is. I think it will be pretty enlightening when you find out what it costs every time the Town puts in a culvert for someone. This would establish a permit system and give the Town Board the authority to adopt the regulations after recommendations are received from the Highway Superintendent including proposed fees. Again, it doesn't require any action on your part tonight, but is for your review and consideration. Cl T Hatfield - On all of these the next action will be to introduce it, then have a hearing at our next meeting and then take action. Cl Grantham - The driveway one would be something that would kind of go along with the building permit process a lot of times. Atty Perkins - Jack would have to coordinate it with Henry's office. Presumably when they came in to talk to Henry, they'd call Jack for a culvert and get a copy of the local law and the regulations and the fee schedule. It's very similar to what the State requires and very similar to what the County requires. A lot of it is modeled after the County requirements. Cl Grantham - So with a building-permit Henry and Kevin issue it and enforce it. Who would actually issue and enforce this? Atty Perkins - The Highway Superintendent, by State law. Cl Beck - The fee schedule is yet to be developed? Atty Perkins - Yes. Jack has, in connection with Dave Putnam and Dave Herrick, come up with a sketch and some specifications already. Jack and I have been working on the actual form of the application for the permit and the permit itself and Jack has been doing_ some Page 33 of 45 TB 7 -12 -2000 research about costs and what would be an appropriate fee to be associated with this work. o This does not contemplate that the homeowner will go out and get someone else to do it. The regs will require that it be done by the Town unless the Town gives permission. Cl T Hatfield - Someone else may be able to do it cheaper, but it would be inferior pipe, the wrong size and the wrong fill material. Atty Perkins - It would still have to be inspected by the Town and sign off and so forth. Cl Beck - I assume this will apply to all driveways. Cl Grantham - It's not retroactive. Atty Perkins - I gave to Mark tonight the original complaint on Ottenschot to be filed. There's been no change in status at the site and the inquiries which were made by a contractor have not materialized so we're ready to file as soon as Mark signs that. I've been working with Dave Herrick and Dave Putnam on a stormwater management law and we've been reviewing_ different models, proposals and other ways that those issues have been handled and probably in a month or two we'll have a proposal for you to look at and consider also. Cl. Grantham - The State has some models. Have you been looking-at those? Atty Perkins - That's one of the things we have. So that will be forthcoming. Cl T Hatfield - There was some question at one point about whether Dryden would A qualify for defining roads and classifying roads and different road standards for rural roads vs main thoroughfares. Cl Grantham - That's local road classification. Cl T Hatfield - Caroline I understand has adopted and implemented that and other smaller Towns, but there was some question about whether we were small enough? Atty Perkins - I gave Jack all that information some time ago. Did we make a determination if we were small enough to do that? Jack Bush - We never made a determination and some of that will come out at the end of the summer season with the work that the Cornell student is doing. We'll have a report that we can use. I think you'll like what you see. Cl Grantham - Is it based on road miles or population? Are there some standards that you need to look up? Atty Perkins - Population. I think we use the census number and I think we've determined that we didn't qualify, or maybe it was the other way. D Putnam - It's very close. We'll see what the population change is since the last census. Cl T Hatfield - I just didn't want that to get lost. J Bush - One part of this program is determining in a sense the same thing that you're talking about. Meaning that an abandoned road would be less used and then you have a dead 49 Page 34 of 45 TB 7 -12 -2000 end road, and a town road that goes through a residential area, and then a town road like George Road or Springhouse Road that runs from a State road to a State road. It actually categorizes that. The program prioritizes everything based on how you want to set it up and you can change it. If the Board is interested, I'd be willing to have maps made and pass them out and you can have your input on what you feel is best in order of importance, and see if you come up with the same thing we did. Cl T Hatfield - I'd like to do that. Cl Grantham - What is the program-you're using and mainly what is it looking at, volume of traffic mainly? J Bush - It's called RSMS, part of the Cornell Local Roads Program. It looks at importance, which is several different categories combined into one, condition of the road, traffic and roughness. C1 Grantham- What are the factors in _importance? J Bush - Whether there is a hospital on the road... Cl Grantham - I see. If we get these maps I'd like to see the screen you go through when you look at a road, the questions that get answered about each section. J Bush - We printed copies for each road. Cl Grantham - I'd like just one blank one. 0 TOWN CLERK On motion-of Cl. Grantham,_ seconded by Cl- Beck,- and unanimously_ approved, the minutes of April 24, 2000 were approved. On motion of Cl Grantham, seconded by Cl C Hatfield, and unanimously approved, the minutes of May 10, 2000, as amended, were approved. B Hollenbeck provided board members with a letter received from Elizabeth Cree of the Tompkins County Board of Elections requesting that the Town provide the machine custodians with a cell phone. During the primary in March there was a great deal of difficulty in keeping in touch with our machine custodians. After discussion the Board decided not to provide cell phones. ENGINEERING D Putnam - On Woodland Subdivision, Henry and Jack and I met with Doug Sutton and he essentially agreed to do whatever the Town wants to do to lift the restrictions. He submitted a letter that came today to Henry and we'll get that letter out to you. The letter says rt is my understanding that of the seven (7) conditions of approval delineated by the Town of Dryden Planning Board on 2/18/88 onl the first two 2 concerning drainage, require additional work." It goes on to explain that he essentially agrees to fix the drainage. He is going to work with us on this. 9 Cl Grantham - He'll work on a complete plan, because it was just a sketch before. The rest of it, the lot markers and... Page 35 of 45 TB 7 -12 -2000 D Putnam - They are there. Cl Grantham - And what were the rest of the conditions? is Atty Perkins - One of them had to do with granting the Town a permanent easement so they could maintain the drainage swales. Historically, the Town. Board has_resisted_that because it means taking on an additional liability and responsibility. There are other ways to handle that such as imposing covenants against the lots that those drainage swales are on. We've done this for example on Oakbrook Lane with Mark Stevens. What you do is adopt some restrictive covenants which_requires. the drainage_ swales,_ once_ they've been-constructed and approved, be maintained in that condition by the owner of the lot. It is the obligation of the owner of the lot to keep it mowed or whatever you determine has to be done to it, and you restrict any plantings in it such as trees or shrubs or bushes that would obstruct the drainage. You would_keep_any structures _out_of_it_andyouu_would_have_a default provision_in_there_Wat in the event the owner does not maintain the drainage way, the Town at its option may then do that and assess the cost of the work against the lot that had that obligation. Cl Grantham - Was one of the conditions deed restrictions about tree cutting as well? Whatyouu. just_talked. about sounds_ like.. a_fine_ alternative,_ an easement for_ the. Town, but... K Ezell - That was not in the Planning Board minutes, I don't believe. D Putnam - No tree cutting without permission of the developer is what it says. K Ezell - From what I understand, it wasn't a restriction of our board, but it was a covenant of the subdivision and therefore a deed restriction essentially. Cl T Hatfield - The Planning Board accepted that. 0 Atty Perkins - Deed restriction on lots regarding tree cuttings are all the Planning Board minutes say. I don't know what it means. Cl Grantham - A covenant on the landowners to maintain the drainage is reasonable. Atty Perkins - This is a perfect example of why we need a local law passing engineering and legal fees on... Cl_C Hatfield_- So. the person who buys the_ lot_that_has..the Swale_ will-have-to maintain it. Atty Perkins - All. ofthe_ work _with- respect to forming_the_ drainage- way and-grading it and seeding it will already have been done. All he has to do is agree not to disturb it and the most hell _have _to do is mow it or_fill-in-erosion-or- whatever.-- It_is_not a_big_problem. Cl Grantham - So should we do that then? Atty Perkins - L think we_ just _need_some_direction._L_think_ it_has.to go back_to.the, Planning Board and probably back to the Town Board, too. Sutton has indicated a willingness to. resolve it._ I_think_we need_to_ keep- moving forward.. I'm_not_ sure there is any T_own.Board action required because it is a Planning Board function. Cl C Hatfield.- If.he's willing. to move. forward,_that's.more than we've had-the past ten years. Atty Perkins - But we don't-want to-lift that-restriction.- Now we've got his attention. Page 36 of 45 TB 7 -12 -2000 Cl Grantham - Will you be taking it to the Planning Board? K Ezell - Yes. Atty Perkins - Take this letter_ and-it should -go to the Town Board,. too. Cl Grantham - I'll plan on being at Planning Board, too, but I think it should come from your office. D Putnam - On the dry hydrant, I called NYSEG again and still haven't heard from them. I have a meeting scheduled for Friday morning with Tompkins County Soil & Water on their funding of dry hydrants and we'll see what we can do that way. Supv Varvayanis - I was talking to Craig all this Spring and he didn't really seem to understand how to operate the whole system til about June and then I met with the Dryden Chiefs and asked them to submit requests to me about where they wanted them. They told me I'd be swamped, but so far I haven't received any. D Putnam - After I find out the procedures Friday, I'll take care of that. ZONING OFFICER K Ezell -We went through. 30 permits last month,- which-was an upswing. In.the last two days I've taken in ten permits. The office is really busy. Our large copier has jammed and will be down for a week or maybe longer, depending on how long-it takes to get the parts, if • they can get the part. In order to work on it we've had to rearrange the office. We sure could use some more space. D Putnam offered copies if we needed them. It's necessary to adopt the new Standard Conditions of Approval. Number 10 has been revised. Cl Grantham_ noted, that for years we've not allowed transfer to another owner, . and we'd been wrong. Atty Perkins explained that this was something that a former Town Board member- had-insisted on. Atty Perkins - The reason -that -they are transferable is that -they don'.t.have to do with a person, but the use of the site itself. We are not licensing people, we are licensing to use the land. That's why under Town Law they are transferable. We've substituted a language that basically says keep us advised as to who the owner is so we know who to contact. We are only changing number 10. RESOLUTION #190 - -ADOPT NEW- STANDARD- CONDITIONS -OF AI PROVAL Cl Grantham offered the following resolution and asked for its adoption: RESOLVED, that the- Standard-Conditions of Approval-used-by the. Town of Dryden in connection with special permits and site plan approval is hereby amended and item number 10 shall now read as follows: In the event of a sale, transfer or discontinuance of the permitted use of the property, the applicant or permittee shall notify the Code Enforcement Officer of such sale, transfer or discontinuance. 2nd Cl T Hatfield 9 Roll Call Vote Cl Beck Yes Cl T Hatfield Yes Page 37 of 45 TB 7 -12 -2000 Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes K Ezell - I- think - you've covered-Peregrine Partners,- unless you have- further discussions or questions. Supv Varvayanis - Mahlon -is going- to- work_with. the- assessment_office- and_also -going to work with John Andersson and answer these questions in his letter of July 3. Board reviewed Mr. Andersson's- letter and identified- lots- referred- to -on- the- subdivision Cl- Grantham _inquired about- lots -l- through_26- and_was_told_sewer-.was in-for-those, but no water and no road. Lots 27 or 28, 29, 43, 37 and 31 or 32 have been built on. Cl Grantham -- He wants us to certify that- the- road, - water_and sewer_ are.done_ for lots 27 through 44. D Putnam -I- thought_ that_was.done. - I'll- have -to_ check. Cl T Hatfield - He wants us to request to extend the approval time, how long? Atty Perkins - Usually it's five years at. a- time. Cl T Hatfield - I would move that we have the Town Supervisor acknowledge that the road_and- sewer main_and water_ main. serving .lots_27_through_44_were - constructed -as- required with the exception of the required meter pit, flow meter, and other appurtenances, and to 40 request an extension of five years for the- construction- of_the_remaming water and-sewer utilities as shown on the plan, provided that both the Town Attorney and Town Engineer have reported to the Supervisor that they are satisfied with the status. Cl Grantham - Dave are the lot numbers correct? D Putnam - Lots 27 through-44- are the ones.that_are buildable, they have the improvements, with the exception of lot 40. Cl Grantham - Maybe you- can-put _that_in -a- letter_ to Mark. Cl T Hatfield - And he can attach that to his letter. RESOLUTION #191 AUTHORIZE- SUPERVISOR'S RESPONSE TO HEALTH - DEPARTMENT REGARDING PEREGRINE HOLLOW SUBDIVISION C1 T Hatfield offered the following resolution and_asked.for its adoption: RESOLVED, that the Supervisor is hereby authorized to respond to John Andersson's letter of June. 29, 2000, regarding Peregrine Hollow Subdivision. and acknowledge that the, road and sewer main and water main serving lots 27 through 44, excepting lot #40, were constructed as required with the exception -of the required- meter pit,. flow meter, and other appurtenances, and to request an extension of five years for the construction of the remaining water and sewer utilities as shown on the. plan,- provided that. both the Town. Attorney and Town Engineer have reported to the Supervisor that they are satisfied with the status. 2nd Cl Grantham 0 Page 38 of 45 • Roll Call Vote AMBULANCE Cl Beck Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes TB 7 -12 -2000 Doug Smith - Board members have monthly report. We are starting to get money in now for the mileage charge. Do you want a separate line item for that? Cl T Hatfield - It would be good to estimate for next year. D Smith - I was asked to do job descriptions for the town ambulance employees. I've written down what everyone does. I gave copies to the committee and have not heard anything back from them so apparently there are no problems. I said something to Rick Young and haven't heard back with any changes, so I'm assuming they are fine. It would be nice if they were accepted by the board because we've never had anything before in writing about what anyone's duties are. RESOLUTION #192 - ACCEPT_ JOB DESCRIPTIONS FOR_ AMBULANCE_DISTRICT Supv Varvayanis offered the following resolution and asked for its adoption: • RESOLVED,. that this-Town-Board-hereby accepts the. job descriptions as written-for the Ambulance District employees. 2nd Cl Grantham Roll--Call-Vote CI-Beck- Yes Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham Yes Cl T Hatfield - Have you had any progress putting together a policy manual? D Smith - Not yet. We've got a personnel problem we've got to discuss tonight. On motion of Supv Varvayanis, seconded by Cl Grantham and unanimously approved the board moved to executive session at 11:40 p.m, to discuss the medical condition of a particular employee. 12:01 a.m. The board moved back into Town Board meeting. The board referred the matter to the Ambulance Committee. DEPARTMENT OF PUBLIC WORKS J Bush - The John.Deere 425 lawn tractor sold for $6,600. Minimum-bid was $6,500. 0 HIGHWAY DEPARTMENT Page 39 of 45 TB 7 -12 -2000 J Bush - We did not receive any bids for the 966D loader. We can trade it in for $46,750 toward the new one, or we can put it in the Lansing. surplus auction, take our chances and then pay 10%. We had 30 days to take the trade in offer, it's got to be close. 0 Cl Grantham - I'd say that's the way_ to go because we know what.we'll.get. J Bush - According to last year's appraisal it was worth $58,000 to $62,000. Since that it-has more hours-on it. It's a 1986. We set_a_minimum_bid at $56,000. After discussion the board decided to use the 966D loader as trade -in toward the purchase of.the new one. If for any reason it can not now be traded, Jack_will let the Board know in August. J Bush - You have a letter. regarding- the 1988 Autocar.. The Village is interested in buying it. That's one of the two trucks that I was replacing with a new truck we will be receiving this year.. They've offered $25,500 pending their board approval. RESOLUTION #193 - SELL 1988 AUTOCAR 10 -WHEEL DUMP TRUCK Cl T Hatfield offered the following resolution and asked for its adoption: RESOLVED, that this Town Board hereby authorizes the sale of the 1988 Autocar 10- wheel dump truck to the Village of Dryden for the sum. of $25,500, and the Supervisor is authorized to execute the necessary documents in connection with said sale. 2nd Cl_Beck Roll Call Vote Cl Beck_ Yes p Cl T Hatfield Yes Supv Varvayanis Yes Cl C Hatfield Yes Cl Grantham_ Yes J Bush, with respect to the Quarry Road matter - A month has gone by and probably the next thing to do was give him a call and say we'll do the work and charge him for it. I don't have the time to do that work. We would have to contract it out. Do I just pick someone, do I have to get quotes from more than. one person? Cl T Hatfield - Follow general procurement policy. Cl C Hatfield - He wants to use his gravel. J Bush - He wants to use his rock and but it up against the pavement. Dave brought to my attention.that the rocksheaving-can-catch on-the snowplow. Cl Beck - I think you stick with your letter and find out what it is going to cost and go by procedure. SUPERVISOR Supv Varvayanis - We have a request regarding the Tehan Road. snowmobile trail from the Caroline snowmobile club. It's one that's been used unofficially for ages. I think they requested to make it official and the DEC wouldn't do it unless they had the whole trail, part of which is in the road right of way. Page 40 of 45 TB 7 -12 -2000 Atty Perkins - I've seen the letter. The procedure is that the Town under the Parks and Recreation-Law can- designate portions of_ highways - where. they can-operate- on-the shoulders and the inside banks and you do that by resolution and it must be posted also. Cl_Beck_- They. (the club). agreed to maintain it. We'd probably have to post it. Atty Perkins - The Town is required first to designate it and then to post it. They'd be using_a.groomer_on_y-our shoulders.. Actually they_ want-to- use. Signal.Tower_ and Tehan_Road from the part that's maintained on Signal Tower all the way to Irish Settlement. They want to use a groomer on the inside shoulder. J Bush - What do you mean by groomer? Like a Greek Peak ski groomer? Atty Perkins - It's kind of like that but pulled behind a snowmobile. It does have teeth or a blade. They take out the moguls. Cl Grantham - Would we just designate it, or would we have to do some work-on it? Atty Perkins - Designate it and post it, nothing else. Cl-Beck.- We don't have any liability? Atty Perkins - If we are going to be using a groomer or equipment on the shoulder of the road, I think we ought to know what kind it is and we ought to get an agreement so that this indemnification provision is formalized, have the proof of insurance provided, and so forth. . J Bush - I can see some future problems with this whole idea. Are we all of sudden not going to be able to wing our snow over because they want it left in the road.... Cl T Hatfield - Aren't there houses on that road? Cl Grantham - I think if we did anything we'd have to have a public hearing and ask people if they mind. Atty Perkins - They already have authority to go on the outside banks. J Bush - That's where they should be then. Atty Perkins - They have that authority from the Parks and Recreation Law. Cl T Hatfield - I think we just send them a letter saying they have the right to use the outside. Cl -C Hatfield -- Isn't Tehan_Road_up to. SignaLTower_ Road-more than _a_quarter ofa.mile? They're saying maintain a quarter of a mile. Atty Perkins - L think -you. ought to have someone here. to explain - what_it-is_they want. Cl T Hatfield - I think if they want to expedite this they should send someone to talk to Jack- and- Mahlon- before the. next meeting. Jack- can-let-us know what he likes or- doesn't like and Mahlon can tell us about the liability issues and the maintenance and the posting. Then we can make an informed decision. Page 41 of 45 TB 7 -12 -2000 Kevin Ezell will contact the snowmobile club and coordinate it with Jack and Mahlon. Cl Grantham -would like the neighbors notified when the matter will be before the board again. Supv Varvayanis noted that we have had a drug testing policy since 1996. Jack last time asked-us a- question. and none of us was aware it existed. J Bush - I just asked the board to allow me to hire someone on the condition that they not run any equipment before their drug testing results came back. Cl T Hatfield - And we said you could do that, didn't we? J Bush - Yes. Cl T Hatfield - I knew that was out there. I think that was part of what Larry was questioning tonight. Supv Varvayanis - This says it is part of pre - employment. Cl T Hatfield - Right, and we gave him permission on a one -time basis. Supv Varvayanis - So we're all on the same page here. Supv Varvayanis - We have a resolution from the Planning Department. Cl Grantham - Do they want us to do something.with this tonight? Cl T Hatfield - When Mark and I went to a meeting with Mike Lane and Jim Hanson O basically they need to be able to deal with the State of New York on the DOT site, and I think what they are looking for is some comfort that should the ongoing process with respect to the proposal for a sewer and water district fail. (that's going, to take some time to get through yet) they want to be able to continue to put money into planning and so on. They are asking us to get a sense of this board and this is a proposed resolution to accomplish that, a sense of the board that if we don't have a "water and sewer district" out there that they can have access to existing municipal sewer and water as a out -of- district user. They are willing . to talk to the trailer park on the public health issues and see if they want to get on board with them. I see some other issues that might be out there that will have to be resolved, but I think they are looking for just a little bit of confidence that if not a, then b. Is that a fair summary Mark? Supv Varvayanis - That. was more or. less what I_ thought we had talked. about, that's why I'm somewhat uncomfortable with some of these whereas's. They make it sound like we are highly in favor of this site. Cl Grantham.- I have no problem with moving. the DOT facility from the shoreline. It's not a good place for it and it's a good idea to move it. I don't have any problem with the DOT facility being in.Dryden somewhere. I do have problems with -this specific site because for environmental reasons it is right in between the unique natural areas that are identified. That soil engineering test wasn't convincing to me that you. could. safely put this structure with the salt pile on that soil and have it be okay. Whoever pays for it, it's tax dollars in the end. It's in a residential. district. I think there is some MA Zone or some other zones that are on water, and sewer. I'd like to know what other sites they looked at, what their criteria were for choosing it. I just find it frustrating that we ask them these questions and we don't get a proposal for exactly what they are going to do and we don't get answers to the questions. I've never seen what criteria were used to choose the site and what other sites were looked at. I've never -. seen that. 40 Page 42-of 45 TB 7 -12 -2000 Cl T Hatfield - They have gone back and looked again, and spent some time doing that since the issue was raised in January, and they've concluded that this is the only site that works. Cl Grantham_- But-what did-they use to come to that conclusion, Tom. What were the criteria for the site and what other sites did they look at. Cl T. Hatfield_- I_think_what they are using-for their criteria is the road access and the location because they are consolidating Cortland and Tompkins County and one of the big criteriathey. told_us,1f.I..remember_.right Mark, was Route 13. They needed-access-to 13. And there's other criteria. They had a list of them, I don't recall them all now. Cl Grantham -- So -we have -that list? Cl T Hatfield - No, I don't have a list in front of me, but they had a list of criteria they were talking about. Cl Grantham - That's what I'm asking, is to see that. There's that storage facility that's for sale that's nearby there. That's already been developed. They'd have to knock down a building, but why not use that. It's already next to State land. It's already got a building on it so you are not building on new land. It's a more industrial corner anyway, not in a residential e t47 ; (This_reference_is_to_ the- moving. company on the_.corherof Lower-Creek _and Route _13. It was noted that location is close to the creek, and D Putnam said he believed that three acres of the_land..was_for_sale,_not_the_ entire property.)_ Cl T Hatfield - Let's modify this resolution to say that we'll work with them on this site or another_ site... What. they are.looking_for is a resolution that this board is not against them so far that no matter what they do is dead. There are lots of reasons why they have that sentence. It is-time-to. start _making-some steps going-in the other direction. Cl Grantham - I am not against putting a DOT facility in Dryden. I don't have any problem with that.._ It. makes_sense_ to_ do it midway. It ought to be off the lake. But I want to be careful about locking into this one site because I'm not convinced it's the best site. Supv Varvayanis_- That_was.the only question that1had... It_made.it_sound_like_we_were really pushing that one site ourselves, or at least convinced it was a great site. I think what they wanted, _and certainly_ what_ Loffered, was just_to. say I'm_willingto_ work_ with them_to get water and sewer in there if they determine that is the best site. Cl T Hatfield_- That's _what .you_and_I_discussed_that day,_ and_I_ agree. Let's modify this proposed resolution. I like some of it, like they'll pay for full costs. Supv Varvayanis - Yeah, we'd leave that in. Cl T Hatfield - That the County will construct and maintain is okay. Tompkins County and New York State will pay the cost of construction of the district. That's fine, I don't care of they contact other people. I think maybe we need, Deb, one more. Maybe it is in the resolveds. Somewhere.what you're saying is-we'd-like _to see. what-the- alternative_sites_were. and the rationale why this is the site because they haven't given that to us. Cl-Grantham - L.would_like..to.. see. that._ I would-like to see_an_interpretation of the soils • tests, because it was one test. They didn't really go to the place where they would put the building because_it_was too. wet. So. they took-one test. They didn't _interpret _it_in_terms_ofJoad Page 43 of 45 TB 7 -12 -2000 bearing. I'd like more of a proposal of what they are planning to do and how they got there. I guess what the point is, is that we are willing to work with them to figure out where we can site this DOT facility to best advantage of everyone, but there are some concerns about that 0 particular site. Supv Varvayanis - Before I'm willing-to commit to putting it anywhere, I've got to know how many trucks and how many tons of salt. There's a lot of stuff I don't know if they know yet, but we certainly don't. Cl Grantham - And if they do it'd be nice if the tell us about it. Cl T Hatfield - I think everything here is fine until you get to the resolveds when you get down to it. We are not going to authorize the creation of an out of district user tonight. that we're Cl Grantham - I don't think we should do that. Cl T Hatfield - But we can say the Town.of Dryden will work diligently and cooperatively with them. Supv Varvayanis - We can show them the map because I worked hard to get the proposed district included in discussion. Cl Grantham - Let's just say the whole resolved is resolved that the town will work... Cl Beck - I think we've got to let Mahlon look at it, or somebody. There are three or four whereases here that say that you're site, going to locate it on Hanshaw Road, Atty Perkins - Well, you don't want to commit to that. 0 Cl Beck - No. And you're also going. to extend water and- sewer services along.Hanshaw Road to the proposed site, that's a whereas that we're not accepting at this point are we? Cl Grantham - No, I don't think we are. Cl Beck - We've got to get it more in depth. Cl C Hatfield - Well this is a start anyway. It's more than we've had. Atty Perkins - You want to give them a sense that you'll cooperate in finding a spot. Cl T Hatfield - Maybe we'll take this as stuff for next time, and just have a resolution stating tonight that the Town hereby resolves to work diligently and cooperatively with Tompkins County and New York.-State to locate the DOT_ facility within the Town of Dryden that meets DOT requirements. Cl Grantham - No that's a mutually satisfactory site. Cl T Hatfield - That meets DOT requirements, okay. Cl Grantham - Yeah. Cl T Hatfield. - Because DOT is the driver here. They want to go there,. and the County is willing now to spend the money to get them whatever they need for water and sewer that they have to have. We've got that issue behind us. 0 Page 44 of 45 TB 7 -12 -2000 The Board then together authored the following resolution: RESOLUTION. #194 - WORK. WITH_T_OMP_KINS COUNTY_ &_ NEW YORK .STATE_TO LOCATE A DOT FACILITY IN THE TOWN OF DRYDEN Cl C Hatfield offered the following resolution and asked for its adoption: RESOLVED, that the Town of Dryden will work diligently and cooperatively with Tompkins County and New York State to locate a Department of Transportation facility in the Town of Dryden in a mutually satisfactory site that meets DOT requirements. 2nd Cl T Hatfield Roll Call Vote C1 Beck Yes C1 T Hatfield Yes Supv Varvayanis_ Yes Cl C Hatfield Yes Cl Grantham_ Yes Supv Varvayanis - On Project Impact, we had one person show up in the Village of Dryden and maybe a dozen in Varna. Not moving_along_quite as nicely as we hoped I guess. I'm doing a poor job in getting letters out looking for partners, although we do have two signed up. Cl-Grantham- What do the partners do? Supv Varvayanis - Agway would run various types of promotional sales, like for do generators or smoke detectors. There are other bank partners that are national partners that I should contact to provide loans for home improvement and other mitigation action. It's just basically corporations who do, something_ similar_ to what you want done. On motion of Supv Varvayanis, seconded by Cl Grantham, and unanimously approved, the meeting was adjourned at 12:40 a.m. Respectfully submitted, 41�6, AZAc..A�4, Bambi_L._ Hollenbeck Town Clerk Page 45 of 45 PSMENT OF AegN DEVO�oQ Mr. Mahlon R. Perkins, P.C. Attorneys and Counsellors at Law 20 West Main Street P. O. Box 27 Dryden, NY '13053 US. Department of Housing and Urban Development Buffalo Office 465 Main Street Buffalo, New York 14203 -1780 UM Dear Mr. Perkins: SUBJECT. Small Cities Community Development Block Grant) CDBG Program, Project No. B- 99 -DH -36 -0200, Town of Dryden, New York This is in response to your letter dated March 2, 2000, requesting an exception to the provisions of 24 CFR 570.611 as it relates to the former Town Supervisor, James F. Schug and Peter Schug the President of Cayuga Press. Under the HUD's Conflict of Interest Regulations, 24 CFR Section 570.611 it is important that the proper steps have been taken for the disclosure of a Conflict of Interest. You stated that the Town of Dryden had two public hearings. You further stated that a legal notice was published on January 29, 1999 which offered the public another opportunity to comment on the specific application of the Cayuga Press application and that no comments were received from the public. We are requesting that the Town of Dryden provide another formal hearing to ensure that the public is totally aware of this disclosure of the Cayuga Press application. If you have any questions regarding this matter, .Canestro at 716 - 551 -5755 extension 5833. Sincerely, Mi please contact Rose Marie Director Community Planning and Development Division http: / /www. hud. gov /local /b of /bufofc. html 6. Town of Dryden Supervisor Varvayanis Town Board Members Attorney Perkins Erica Evans 49 Turkey Hill Road Ithaca, NY 14850 (607) 273 -7189 J Wednesday, July 12, 2000 Regarding HUD GRANT Mr. Varvayanis, please read this statement, since I am unable to attend tonight's meeting. I need to state that I attended at least two Town Board Meetings at which the HUD grant award was discussed and voted on. It was probably nor than that, but I clearly_ remember two. Each time the subject came up, then Supervisor Schug excused himself so that the discusiions could proceed fairly. I do NOT remember that any other grant proposal was ever discussed or brought to the floor. If indeed at that time there were other applicants, I am not aware of them. Since I think there weren't any. I do not see owner is the son of the then Supervi; business. If there were other worthy that the process should be reopened. As to what Attorney Perkins comment on. why Cayuga Press should be penalized because the ;or, and the then Supervisor has a share in the applicants that were unfairly turned down, I agree If not, the matter should stand. did or did not do, I am not aware of and cannot Thank you for reading this statement. Sincerely � L �.s ... ,: Town of Dryden Supervisor Varvayanis Town Board Members Attorney Perkins Erica Evans 49 Turkey Hill Road Ithaca, NY 14850 (607) 273 -7189 J Wednesday, July 12, 2000 Regarding HUD GRANT Mr. Varvayanis, please read this statement, since I am unable to attend tonight's meeting. I need to state that I attended at least two Town Board Meetings at which the HUD grant award was discussed and voted on. It was probably nor than that, but I clearly_ remember two. Each time the subject came up, then Supervisor Schug excused himself so that the discusiions could proceed fairly. I do NOT remember that any other grant proposal was ever discussed or brought to the floor. If indeed at that time there were other applicants, I am not aware of them. Since I think there weren't any. I do not see owner is the son of the then Supervi; business. If there were other worthy that the process should be reopened. As to what Attorney Perkins comment on. why Cayuga Press should be penalized because the ;or, and the then Supervisor has a share in the applicants that were unfairly turned down, I agree If not, the matter should stand. did or did not do, I am not aware of and cannot Thank you for reading this statement. Sincerely � L �.s • James W. Hanson, Jr. Commissioner of Planning DEP Mr. Mark Varvayanis Supervisor, Town of Dryden 65 East Main Street Dryden, NY 13053 July 10, 2000 RG [isT' :A :s Syr: D JUL 1 n 2000 Telephone (607) 274 -5560 Fax (607) 274 -5578 Re: HUD /SCCDBG Cayuga Press of Ithaca Expansion Project Dear Mark: Since the Tompkins County Planning Department staff was involved in assisting the Town of Dryden in writing the 1999 HUD /SCCDBG application for the Cayuga Press of Ithaca Expansion Project, I thought it would be appropriate to provide the necessary background information. The Department has routinely provided this type of administrative service for Tompkins County municipalities interested in pursuing HUD /SCCDBG programs. The municipalities reimburse the Department for grant preparation costs upon receiving the grant. The County Planning Department had advertised in the Fall of 1998 through the local media the Notice of Funding Availability (NOFA) for the 1999 round of HUD Small Cities. Community Development Block Grant funding. In addition, the President of the Tompkins County Area Development agency sent a personal cover letter with the announcement of the 1999 HUD /SCCDBG Economic Development grant programs to Tompkins County area businesses and corporations. The Town of Dryden, like other municipalities within Tompkins County, responded to the Department's notice and indicated an interest in pursuing a HUD /SCCDBG economic development loan project. During the application process various factors were considered relative to the need for and benefits of the project to the Town and its residents and the potential conflict of interest situation involving the Town Supervisor. In the end it was decided by the Town to submit the application but to take actions that would address the conflict of interest situation with HUD. These factors were brought to HUD's attention during the application. process, announced at the public hearing, and restated verbally to the HUD staff prior to any announcement of grant funding. 4w$ Recycled paper 0, Telephone (607) 274 -5560 Fax (607) 274 -5578 Re: HUD /SCCDBG Cayuga Press of Ithaca Expansion Project Dear Mark: Since the Tompkins County Planning Department staff was involved in assisting the Town of Dryden in writing the 1999 HUD /SCCDBG application for the Cayuga Press of Ithaca Expansion Project, I thought it would be appropriate to provide the necessary background information. The Department has routinely provided this type of administrative service for Tompkins County municipalities interested in pursuing HUD /SCCDBG programs. The municipalities reimburse the Department for grant preparation costs upon receiving the grant. The County Planning Department had advertised in the Fall of 1998 through the local media the Notice of Funding Availability (NOFA) for the 1999 round of HUD Small Cities. Community Development Block Grant funding. In addition, the President of the Tompkins County Area Development agency sent a personal cover letter with the announcement of the 1999 HUD /SCCDBG Economic Development grant programs to Tompkins County area businesses and corporations. The Town of Dryden, like other municipalities within Tompkins County, responded to the Department's notice and indicated an interest in pursuing a HUD /SCCDBG economic development loan project. During the application process various factors were considered relative to the need for and benefits of the project to the Town and its residents and the potential conflict of interest situation involving the Town Supervisor. In the end it was decided by the Town to submit the application but to take actions that would address the conflict of interest situation with HUD. These factors were brought to HUD's attention during the application. process, announced at the public hearing, and restated verbally to the HUD staff prior to any announcement of grant funding. 4w$ Recycled paper A total of five successful economic development loan projects have been developed by the Planning Department over the past ten years. The benefit to the community is the expansion of business and the creation of jobs for low- and moderate - income residents. The Cayuga Press project, sponsored by the Town of Dryden, would provide the Town with $385,000 in grant funding to be used initially to establish a revolving loan fund to allow Cayuga Press to purchase equipment that will service the company's expansion needs and provide 15 additional jobs to the existing workforce over the next five years. Repayment from Cayuga Press was to have been made to the Town of Dryden Revolving Loan Fund, and these funds would be used to make future economic development loans to prospective businesses in the Town of Dryden. The repayment terms were negotiated by my staff with HUD, following procedures outlined through the application process, and are similar to other economic development projects in Tompkins County, The Town had requested, at the time of the application development, that the Tompkins County Planning Department, under contract, administer the loan program, as the County has considerable experience in this area. The Tompkins County Planning Department, in the application process, was providing typical, "arms- length," "third- party" professional administration services. In addition, it should be understood that the SCCDBG program is highly competitive and only HUD decides which programs will be funded, based on meeting their guidelines and criteria. It should also be understood that neither the Town nor the County plays any role in the final approval of the project by HUD. I trust this information will be beneficial to the Town of Dryden in making a final determination on this project. JWH /kfw p:\ cc: Charles Hatfield Ronald Beck Deborah Grantham Tom Hatfield Mike Lane Charles Evans 1 George Totman Peter Schug Sincerely, 2 �I )Res W. Hanson, Jr. mmissioner of Planning .I • 7 July 2000 Town Board Town of Dryden 656 E. Main St. Dryden, NY 13053 Dear Supervisor Varvayanis, Ms. Grantham, Mr. Beck, Mr. C. Hatfield, and Mr. T. Hatfield; I am unable to be present at the July 12 public hearing on the matter of HUD's determination of a conflict -of- interest (Community Development Block; Grant to Cayuga Press of Ithaca, Inc.). I am opposed to approving the HUD loan to Cayuga Press at this time, for reasons stated below. I would support finding another business in Dryden that would qualify for this loan program, which will apparently help provide jobs in our town and /or encouraging Cayuga Press to apply again in another round. I am opposed to approving the HUD loan to Cayuga Press because I strongly believe that it would be wrong, and possibly illegal to approve this loan, given that there was a prohibited, and potentially illegal (by New York State law) conflict -of- interest when the Town sponsored Cayuga Press's application to HUD. -01 1. Was there a conflict -of- interest in 1999 when Cayuga Press's application was sponsored by the Town of Dryden? Apparently, yes. HUD itself has apparently ruled that there is conflict --of- interest by its federal rules (letter from HUD), and New York state law (General Municipal Law, Art. 18) seems to indicate that the Town's sponsorship of Cayuga Press's application in 1999 violated state conflict -of- interest laws. New York state law (General Municipal Law, Art. 18, sect 801) states that "No municipal officer shall have an interest in any contract with the municipality of which he is an officer or employee, when such officer... has the power to (a) negotiate, prepare, authorize or approve the contract or authorize or approve payment thereunder." 2. Should an apparent conflict -of- interest in 1999 affect the approval of the HUD loan in 2000? The Town Attorney has written to HUD that an exception to HUD's conflict -of- interest rule should be granted since "... if a prohibited conflict -of- interest once existed, it no longer exists. " (March 2, 2000 letter), In my opinion this sounds like legal straining to find the technical loophole, -and it does not bring honor to this board. The cold fact remains that the town sponsored a grant itapplication which will directly benefit the Supervisor who was in office when the �UL Cuuj Dear Supervisor Varvayanis, Ms. Grantham, Mr. Beck, Mr. C. Hatfield, and Mr. T. Hatfield; I am unable to be present at the July 12 public hearing on the matter of HUD's determination of a conflict -of- interest (Community Development Block; Grant to Cayuga Press of Ithaca, Inc.). I am opposed to approving the HUD loan to Cayuga Press at this time, for reasons stated below. I would support finding another business in Dryden that would qualify for this loan program, which will apparently help provide jobs in our town and /or encouraging Cayuga Press to apply again in another round. I am opposed to approving the HUD loan to Cayuga Press because I strongly believe that it would be wrong, and possibly illegal to approve this loan, given that there was a prohibited, and potentially illegal (by New York State law) conflict -of- interest when the Town sponsored Cayuga Press's application to HUD. -01 1. Was there a conflict -of- interest in 1999 when Cayuga Press's application was sponsored by the Town of Dryden? Apparently, yes. HUD itself has apparently ruled that there is conflict --of- interest by its federal rules (letter from HUD), and New York state law (General Municipal Law, Art. 18) seems to indicate that the Town's sponsorship of Cayuga Press's application in 1999 violated state conflict -of- interest laws. New York state law (General Municipal Law, Art. 18, sect 801) states that "No municipal officer shall have an interest in any contract with the municipality of which he is an officer or employee, when such officer... has the power to (a) negotiate, prepare, authorize or approve the contract or authorize or approve payment thereunder." 2. Should an apparent conflict -of- interest in 1999 affect the approval of the HUD loan in 2000? The Town Attorney has written to HUD that an exception to HUD's conflict -of- interest rule should be granted since "... if a prohibited conflict -of- interest once existed, it no longer exists. " (March 2, 2000 letter), In my opinion this sounds like legal straining to find the technical loophole, -and it does not bring honor to this board. The cold fact remains that the town sponsored a grant itapplication which will directly benefit the Supervisor who was in office when the • application was made, and the Supervisor's family. This action has the appearance of violating NY State Law (General Municipal Law Art. 18). It seems also relevant that Article 18, sect. 804 states that "Any contract willfully entered into by or with a.municipality in which there is an interest prohibited by this article shall be null, void, and wholly unenforceable. " In other words, it seems irrelevant that Mr. Schug is no longer in office, since the apparent conflict -of- interest affected the sponsorship of the grant application. If approved by you, the grant will directly benefit the former Supervisor. Furthermore, I believe it was wrong for the town to have applied for an. exception to HUD's Conflict -of- interest Rule, since apparently under New York State Law (General Municipal Law, Art. 18)_a prohibited conflict -of- interest existed when the application was made to HUD (Perkins letter, March 2, 2000, p. 3). 3. Avoiding the appearance of conflict -of- interest Citizens of this Town are aware that the Hanshaw Road Water and Sewer District, as it was originally proposed during Mr. Schug's time as supervisor, included the property of Cayuga Press and personal real estate of the Schugs (map, plan and report - 1999). These two projects (HUD grant to Cayuga Press and Hanshaw Water and Sewer District), with • potential benefits to the Schug's business and family, create the unfortunate impression of personal gain through the former Supervisor's office. Please do not set a terrible precedent for future town officials by approving a loan with an apparent legal and ethical shadow over it. There are certainly other projects out there that would qualify for this excellent economic development program and provide new jobs for our neighbors. Even if the loan to Cayuga Press is not approved, "the town may still keep the funds for use in other authorized Community Development Block Grant projects" (Oct. 11, 1999). A reasonable solution for Cayuga Press would be to apply again for a grant under the current or future town board which does not include any member of their family. Finally, I hope that someone on the Town Board will ask the Town Attorney the following question: If (by New York State Law) Mr. Schug met the conflict -of- interest threshold (holding more than 5% of Cayuga Press stock), why did the Town Attorney not advise the Town Board of that fact before the vote on Cayuga Press's application in 1999? Thank you., Robin H. Seeley 332 Hurd Road Ithaca, NY 14850 i Steven S. Robertson, 08:13 AM 7/10/00 HUD and conflict of interest Return -Path: <ssr4 @cornell.edu> - Sender: ssr4 @postoffice.mail.cornell.edu (Unverified) Date: Mon, 10 Jul 2000 08:13:06 -0400 To: drydent @lightlink.com From: "Steven S. Robertson" <ssr4 @cornell.edu> Subject: HUD and conflict of interest Dear Town Board: I am unable to attend the upcoming public hearing on the issue of whether the previous application represents a conflict of opinion here. to HUD for funds to benefit Cayuga press interest, and so I would like to voice my I strongly oppose th@ use of HUD funds to benefit Cayuga Press, as it represents an unacceptable conflict of interests. Another recipient for the funds should be identified based on the best interests of the town, not a former official. Thank you. Steven S. Robertson 1655 Ellis Hollow Rd Printed for Dianne <drydent @lightlink.com> 1 Deb Grantham, 04:22 PM 7/12/00 Fwd: HUD conflict of Interest isReturn -Path: <dgg3 @cornell.edu> X- Sender: dgg3 @postoffice.mail.cornell.edu Date: Wed, 12 Jul 2000 16:22:49 -0400 To: "Drydent @lightlink.com" <Drydent @lightlink.com> From: Deb Grantham <dgg3 @cornell.edu> Subject: Fwd: HUD conflict of Interest cC : —, BOL� 8. tl • >X- Sender: dap4 @postoffice.mail.cornell.edu >Date: Wed, 12 Jul 2000 16:14:30 -0400 >X -PH: V4 .1 @postoffice.mail.cornell.edu (Cornell Modified) >To: dgg3 @cornell.edu (Deborah Gene Grantham) >From: Dawn Potter <dap4 @cornell.edu> > Subject: HUD conflict of Interest >I do not believe the town should request or accept the exception to the >HUD Conflict of Interest regulations. I urge the Town Board to reject >this exception. >Thank you, >Dawn Potter ><><> <>< >< ><><><>< ><><> >Dawn Potter, Admin. Asst. >Neurobiology and Behavior, W360 Seeley G. Mudd Hall > Cornell University, Ithaca, New York 14853 -2702 >Phone: 607 - 254 -4330 >Fax: 607 - 254 -4308 >e -mail: dap4 @cornell.edu Printed for Dianne <drydent @lightlink.com> 1 Jul 07 00 01:03p CHR (60.71.753 -7323 p.2 • t Karl Heck, 30 Fe Phone, 607444 -5464 July 7, 2000 Mark Varvayanis Supervisor Town of Dryden 65 East Main Street Dryden, NY 13053 Dear Mr. Varvayanis: son Road, Dryden, NY 130534716 E-Mail.osldkh@ciaritycopinect.com I saw in The Ithaca Journal that the Cayuga Press loan from the 1999 U.S. Department of Housing and Urban Development (HUD) Small Cities Community Development Block Grant (CDBG) program is h aving another public hearing on July 12, 2000 at 7:15 p.m. at the Town Hall. While I cannot attend the meeting due to work commitments in my job as Deputy Director of the Cortland Housing Authority, I thought this letter would assist in this process, especially as there has been considerable turnover in elected officials since the original application process began in the winter of 1998 -1999. I wrote the Cayuga Press application on behalf of the Town of Dryden as part of my duties as the CommuniWEconomic Development Specialist for the Tompkins County Planning Department, a position which I left in May 1999 after over seven years. I am also a Town of Dryden resident, though this fact had no bearing on my professional work in writing the application, but does regarding my continents regarding the current situation_ In addition to writing the application, I attended and spoke at both public hearings regarding the application. Despite considerable publicity regarding the application (including a page two Ithaca Journal story about the application and Cayuga Press the -day of the hearing), i was the only speaker at both hearings. Therefore both public bearings were quite short, and the Town Board approved the submission of the application with Supervisor Jim Schug recusing himself from the voting. HUD later approved the application for funding as well. I was surprised in reading the notice for the Public Hearing that this loan had not been already been implemented, as the HUD approval of this project occurred in August 1999, almost a full year ago. The Town of Dryden was active in all four rounds of CDBG funding from 1995 to 1999 (1997 -1998 was one round with twice as much funding), completing three housing rehabilitation applications and one economic development application (the Cayuga Press application). Two of the three housing rehabilitation applications were funded by HUD (the 1995 and 1998), and after the 1998 application was funded, there were almost no additiOat residents "in the pipeline" interested in rehabilitation assistance. Therefore in 1999, another housing rehabilitation application was unlikely to produce success. The Town did not have any reasonably eligible public facilities projects, and a separate homeownership program for the Town of Dryden did not stem necessary at the time (At the time I left the County, Dryden had the most participants in the County's Homeownership Program, with 24 of approximately 110 houses purchased in the Town). Therefore the only likely application was for an economic development loan, should a project be able to be secured. Economic Development funding to a community from HUD normally works in the following way. A community applies for money from the CDBG program in order to provide a loan to a local business at a preferred interest rate, in exchange for creating employment that is taken or "available to" low and moderate - income persons (HUD does not require that the people hired five in the particular local community). The loan repayments may be retained by the community, and used for another CDBG eligible activity (normally the same activity as the original grant). Typically, the percentage of economic development projects approved by HUD were higher than any other category, but the number of projects Jul 07 00 01:03p CHR (607) 753- -7313 p.3 were the lowest of the four major categories due to the difficulties in developing and timing the projects to meet HUD's schedule, which normally takes several months to obtain funding. As was the case for several years when I worked at the County, the County Planning Department did a solicitation letter for the 1999 round to local businesses regarding the Small Cities CDBG program in conjunction with Tompkins County Area Development (TCAD), the County's economic development arm. A solicitation letter was also sent to all Town Supervisors and Village Mayors regarding the availability of the CDBG program and the County 's expertise in developing projects and obtaining funds through the CDBG Program. A response was received by then Town Supervisor Jim Schug regarding Cayuga Press. No other responses were received from Dryden businesses (nor, if I remember correctly, any other businesses within Tompkins County) as part of the 1999 round, The Cayuga Press project is a model economic development project in a number of ways. Cayuga Press is a relatively small, steadily growing business that is large enough to benefit from a $400,000 loan, and small enough to have the loan make a difference in their business operations. The Company is a manufacturer with mostly out- of-towa customers, and does not directly compete with other Dryden businesses. The proposed loan is for a single piece of equipment, and additional workers can directly be tied to that piece of equipment and the additional business that Cayuga Press could generate due to the installation of another Heidelberg press. The single piece of equipment can also be easily used as collateral for the project, and has a value far in excess of the $400,000 CDBG loan. Cayuga Press also has local ownership, au there is some confidence that the business would not leave the rommunity in the near future, and the financial status of Cayuga Press was such that the likelihood of loan repayment back to the Town is quite high. The Schug family are the owners of Cayuga Press, and this fact was disclosed in several places in the original application for assistance, along with the fact that Jim Schug was the Town Supervisor at the time of the application. It was also disclosed at the original hearings, without objection from the public attending those hearings. HUD also approved the project knowing that the ownership structure included the Town Board. As there is now a different Town Supervisor unrelated to the ownership of Cayuga Press, the conflict of interest for a new Town Board approving this loan would seemingly vanish. Approval of the loan for Cayuga Press would certainly be the right thing for the Town Board to do, for all of the reasons cited above, as well as to create a permanent loan fund to assist the economic development of the Town of Dryden, New York State took over the administration of the Small Cities CDBG program in 2000, so die 1999 round is the last HUD- administered round that will occur in New York. Therefore, future competitions may be quite different than the rules under which Dryden received $400,000 for this loan program. Implementing this loan program will not only allow the Town to effectively use these funds for their Intended purpose, but create a loan fund that will have long -term benefits to may not be future opportunities to create such a loan fund for the Town. Should you have any further questions, do not hesitate to call or e-mail me. Sipc ly yours, 1 Karl Heck Cc: Mr. Peter Schug, President, Cayuga Press Dryden Town Board Members Hon. Michael Lane, Tompkins County Board of Representatives Hon. Charles Evans, Tompkins County Board of Representatives Hon. George Totman,. Tompkins County Board of Representatives the Town of Dryden. There ,y OCT-12-199f3 13:04 TOMP< I NS PLRNN I tdCi/ I TC rC Tompkins County DEPARTMENT OF PLkNMNG 11 East Court Street Ithaca, New York 14850 Jaum W, Hanson, Jr. CotamWioncr ort UUUdn& To: Jim Hansooi Commissioner From: Karl Heck, Community%Economic Development Specialist (G D= January 6, 1999 • • ::� t � � i•c u: ' iC� S07 274 5578 P,OB Te!ephonn (6n 2741560 FAX (6071274.SSM I met with Peter Scrag of Cayuga Press and jim Schug; Town of Dryden Supervisor, regarding"the possibility of doing a Torn of Dryden 1pplication for economic developme4 It is clear to me that: tile• Town of Dryden is not in a.position to have a housiag rehahilitation- project in- 1999, s4" ii' an application is to be done, an economic development project of this type appears to be the best possibility. it should also be noted nisi Gquga Press is the only response from the Town of Dryden that we have received, through our solicitation, and the County solicitation of economic development projects through TCAD.. " Cayuga Press is located on Haasbmv Road in the Town of Dryden, and Peter:Schug identified two potential phases of development. The first is the purcloe of an additional printing press for their. current building, and the second is the construction of a new building to coitsolidate Cayuga Press's. facilities in one location. During the meeting, we agreed that the printing p=' appeared: to be themosrr doable project for the 1999 round. Mr. Schug estimated the total cost of the pdndttz; press at $1 trillion, with a lifespan of 1540 years. The CDBG loan would be in the area of $390,000 ($400100 minus administrative costs), and repaid to the Town ofD ryden 2s it would be their applimdon for fending. Peter Schug was provided a list of materials, ineltuiingproformas, price proposals for the equipment, job goals (he believes the project can do 15.20 jobs over five; years), the availability of other fiAs% cing, and related amerials. T also provided Mr_ Schug a loan copy of the M Test Labs application, so he could see the types of materials that are in an applicadon. I Would definitely, inform Mike lane about this application as soon as possible, so that there isn't a problem through the Board of Repr�esentldYes given the project sponsor. .Otherwise it looks like a reasonable CDBG project for a reasonable -sized business, though I haven't seen the financials yet. Thanks again for your help. A copy of our economic development one -sheet is attached for your information. �9� Rrcyclrrllx��c�t• I My name I would like to take a few moments to clear the air and correct some misinformation for the record and this community. Throughout this entire process no one has come to me, as president of Cayuga Press of Ithaca, to ask me about the facts of this matter. I have a unique prospective, as does Karl Heck, of being involved in the process from the beginning. First I would like to address a major misconception regarding the Grant. This Grant is to be given to the town of Dryden, who in turn will loan the monies to Cayuga Press of Ithaca. The money will be repaid directly to the Town of Dryden, with interest, and will build as a loan fund for future businesses in the Township of Dryden. These monies would not be available to the town if Cayuga Press of Ithaca had not spent two weeks and several thousand dollars applying for the loan. These monies are available to the town today only through the efforts of the Tompkins County Planning Dept. and Cayuga Press. I reiterate through the efforts of the Tompkins County Planning Dept. and Cayuga Press of Ithaca. I would like to chronicle the facts that led up to this point. A) We at Cayuga Press first learned of the opportunity to apply for a loan from HUD in the fall of 1998, from a legal notice in the Ithaca Journal. With this information I contacted Karl Heck, Community/ Economic Development Specialist of the Tompkins County Planning Dept, to see if we were eligible to apply for the loan. During our first meeting Mr. Heck, James Schug and I discussed a possible conflict of interest issue regarding my father being the current Town Supervisor. At the very outset of the process, prior to the application, I raised the issue of a. possible conflict of interest. Jim Schug did not supply any information for the CDBG funds, it was done entirely without his input. Mr. Heck stated he would check with HUD on the potential conflict of interest issue before we proceeded with the application. A few days later, Mr. Heck informed me that HUD had responded that there was no problem with the town applying for the funds and subsequently loaning them to Cayuga Press. As long as, there was complete disclosure of the relationship of James Schug's position • as a minority shareholder of Cayuga Press. As you can see in the application page 119 a complete description of his relationship, page 120 a copy of the Ithaca Journal article that describes his relationship and on page 121 a list of shareholders as of the date of application. The relationship with Cayuga Press and Jim Schug was discussed at the onset and placed in the application, which is a public document. At this time I would like to make this letter from Karl Heck, part of the official record, for it reiterates everything I have said. B) With HUD approval, I proceeded to spend the better part of two weeks working on the application with Mr. Heck. My father took no part in preparing the application, nor did we at anytime discuss the application. C) Two public hearings were held on January 6 and January 13, 1999 for public input regarding the application. At the Jan. 6 meeting no one spoke and at the Jan. 13 hearing only Karl Heck spoke about the application. Everyone on the board had full knowledge of James Schug's involvement with Cayuga Press of Ithaca and no objection to the application was received from the floor or any board member. After the second meeting, the Board unanimously approved the application and forwarded it to HUD. D) HUD was to make the final decision regarding the applications and who would receive the monies. There were a total of 240 application received by HUD in this round. Cayuga Press was the only application submitted by a company in the Town of Dryden. E) It was not until a press conference in August 1999 that I learned that Cayuga Press's application had been successful. HUD Secretary Andrew Coumo himself congratulated us on a successful application and handed us a symbolic check for the amount of the Grant to the town. As of August 1999, Jim Schug still had nothing to do with the loan. F) As I understand, HUD is prepared to grant an exemption on the conflict of interest following this hearing, because of our full disclosure of Jim Schug's relationship to Cayuga Press and the Town of Dryden. HUD directed the town to request an exemption to the conflict of interest prohibition, which is fine with us. We have always wanted everything in the open. At the October 12,1999 Town of Dryden board meeting James Schug excused himself from the room while discussion took place concerning the loan. Resolution 174 -99 Accept HUD Grant, states "Whereas certain issues remain to be determined by HUD before they will • authorize the U.S. treasury to release the funds to the town, NOW, THEREFORE BE IT RESOLVED BY THE TOWN BOARD OF THE is TOWN OF DRYDEN AS FOLLOWS: 1) The Deputy Town Supervisor is authorized. to sign the funding Approval/ Agreement with HUD. 2) The Town shall comply with all HUD regulations including those identified by HUD as necessary for HUD to resolve any potential conflict of interest issues. Roll Call Cl Beck YES Cl T Hatfield YES Cl C Hatfield YES Cl Grantham YES After the vote Deputy Town Supervisor C Hatfield asked that Jim be asked back into the room. This is a hearing about a possible conflict of interest. Jim Schug did not tell me about the block grant. Nor did he advise or participate in anyway with the application process. I want to be very clear, James Schug DID NOT AT ANYTIME ADVISE ME, OR ANYONE AT Cayuga PRESS, OR PARTICIPATE IN ANY FASHION WITH THE APPLICATION. Jim Schug DID NOT VOTE ON THE LOAN APPLICATION. HUD is ready to. release the fund after this public hearing. OUR APPLICATION WAS APPROVED ON ITS OWN MERIT. Accorcling to T.C. Planning Dept. numbers this loan to Cayuga Press of Ithaca would benefit our community in that: It would create 15 new jobs. Leverage $915,000 in private investment compared to the $385,000 in HUD Funds. Provide needed spin -off economic benefits in Tompkins County in Upstate NY that has suffered substantial losses in manufacturing employment in recent years. According to the NYS Dept of Economic Development study the creation of 15 new manufacturing jobs will generate the following benefit in the first year. Earnings of $7 Retail Sales of Service Sector Bank Deposits These $1,465,000 in Tompkins County, a and growth to assist 00,000 $525,000 Receipts of $140,000 of $100,000 spin- off economic benefits will greatly benefit county currently in need of economic stimulation its stagnant manufacturing sector. These are just some of the reasons why it is a good decision to loan the • money to Cayuga Press. As we pay back the loan, the Town of Dryden, its businesses and residents also benefit. The town will have a revolving fund to further invest in our community. This money would not be available to the town had it not been for the Cayuga Press application. I ask that you support this worthwhile endeavor. Thank you Peter Schug, President Cayuga Press of Ithaca • CAYUGA PRESS OF ITHACA, INC. OWNERSHIP STRUCTURE JANUARY 18, 1999 Peter Schug, President - 21000 Francis Schug, Secretary - 1,100 Robert Schug - 11000 James Schug - 550 Josephine Schug - 350 TOTAL 5,000 shs 40% shs 22% shs 20% shs 11% shs 7% shs 100% 122. -99 01 :39 PM MAHLON 13,199 0 I R PERKINS PC <01714:%44A96I 607 844 8961 ;; 1 'i J If approved, mone w1ll y . elp Cayuga Press ti m nf+ COLD J P -01 P -09 r L }. ✓ . t��; .tr' Le he��rtn DRYDEN — The Town ' j . 19 Board Is _sppty�g for d $400.000 pubfrc heating ;;. Wgial HU17 grant to start a se4 FIUD grant `` rMMng low = Interest industrial lal devolopment and oommer j Joan program• Dryden Town If the apppQ, ;lion is adapted Main �. Drydenby the Hou ;�ng and Urban 7:45 lonlght Development- department's Small Cydes Cotiimunity Devel- ohpincrit Block Prant program, "As the loan is repaid .toe �400,000loan& is h7cely to town can retain repayments'a 7 go to Cayuga Press of Ithaca inc, loan them out BPI said ICari to help wlth,its cxpar>sion. Heck, the community/ ccoaonix. The Hanshaw Road company development specialist with• the' wants to buy a new $1.3 tnWlon county Planning Department.. printing press and hire eight to Heck's office is helping the tOW' 10 more people, coin III apply for thegratic dent Peter Schug said. 7be bus&- The Gry of Ithaca and TJ�' news prints magazines, Ides County already have rbrochures, catalo® and Ayers, It ing loan funds as do the villaemploys 45 people, mostly pro- Oroton and Dryden. Cafessional printers, Press also Is ciple to apply t"We've beengrowing for the countys rervMn IWjd but last two years," Schug said. "If is not enough in the fund we can get the loan from the now, The eounlys revolving town, it may be feasible to add is now down to s5owo, a iraanother press." of its Sl S million maraimum.HUD's Small Cities Commu- Town Supervisor lames Snity Development program said the grant is part of awards grants to municipalities town's quest to help busine with populations Ica than 50,000 in town expand and prosper, iii '. for low income housing rehabli- "We consider this a win win site tation loans and industrial devel- uadon," said Schug, Pctces fntbet: opment, Both kinds of an is are 'The town receives the money jil used to start revoMng loan pro. a grant, gives it out as a loan and grams. Dryden has already it's paid back with interest. i • ' received two HUD grants for The Town Hoard is not low-income housing rehabilita- t vectcd to vote on the proposal, Dion in 1995 and 1998. So far the but when it does, the town super. town has received about $1 3,000 visor said he wW abstain to avoid back from those loans, any potenriai uontlict olinterest The industrial development The town will hold a public grant helps town. grant small hearing on the proposed retaLn existing businesses tonight at the Dryden Tbwri by helping them expand. Hall. , 1214 1 i i 0 I R PERKINS PC <01714:%44A96I 607 844 8961 ;; 1 'i J If approved, mone w1ll y . elp Cayuga Press ti m nf+ COLD J P -01 P -09 r L }. ✓ . t��; .tr' Le he��rtn DRYDEN — The Town ' j . 19 Board Is _sppty�g for d $400.000 pubfrc heating ;;. Wgial HU17 grant to start a se4 FIUD grant `` rMMng low = Interest industrial lal devolopment and oommer j Joan program• Dryden Town If the apppQ, ;lion is adapted Main �. Drydenby the Hou ;�ng and Urban 7:45 lonlght Development- department's Small Cydes Cotiimunity Devel- ohpincrit Block Prant program, "As the loan is repaid .toe �400,000loan& is h7cely to town can retain repayments'a 7 go to Cayuga Press of Ithaca inc, loan them out BPI said ICari to help wlth,its cxpar>sion. Heck, the community/ ccoaonix. The Hanshaw Road company development specialist with• the' wants to buy a new $1.3 tnWlon county Planning Department.. printing press and hire eight to Heck's office is helping the tOW' 10 more people, coin III apply for thegratic dent Peter Schug said. 7be bus&- The Gry of Ithaca and TJ�' news prints magazines, Ides County already have rbrochures, catalo® and Ayers, It ing loan funds as do the villaemploys 45 people, mostly pro- Oroton and Dryden. Cafessional printers, Press also Is ciple to apply t"We've beengrowing for the countys rervMn IWjd but last two years," Schug said. "If is not enough in the fund we can get the loan from the now, The eounlys revolving town, it may be feasible to add is now down to s5owo, a iraanother press." of its Sl S million maraimum.HUD's Small Cities Commu- Town Supervisor lames Snity Development program said the grant is part of awards grants to municipalities town's quest to help busine with populations Ica than 50,000 in town expand and prosper, iii '. for low income housing rehabli- "We consider this a win win site tation loans and industrial devel- uadon," said Schug, Pctces fntbet: opment, Both kinds of an is are 'The town receives the money jil used to start revoMng loan pro. a grant, gives it out as a loan and grams. Dryden has already it's paid back with interest. i • ' received two HUD grants for The Town Hoard is not low-income housing rehabilita- t vectcd to vote on the proposal, Dion in 1995 and 1998. So far the but when it does, the town super. town has received about $1 3,000 visor said he wW abstain to avoid back from those loans, any potenriai uontlict olinterest The industrial development The town will hold a public grant helps town. grant small hearing on the proposed retaLn existing businesses tonight at the Dryden Tbwri by helping them expand. Hall. , 1214 99 01:3 2 PM MAHLON R PERKINS PC 607 2448961 A r ri D ation The Town of [ ryden has determined that providing a low - Interest loan to Cayuga Press of Ithaca is both necess ry and appropriate for the maintenance and growth of Cayuga press In the Town of Dryden in ?ompkins County. A financing gap of $385,000 is shown in the Cash Plow Analysis provided by Cayuga Press that only HUD Small Cities funding can fill. This funding is not available from other sources at the rate and term necessary in order to make the project viable. As part of this kppropriate Determinadon, It should be noted that the Town Supervisor, James F. Schug, Is a ority stockholder in this farnily business. This fact was clearly stated in the Public Hearin s for the Project, as well as in the Ithaca journal newspaper and on WHCU Radio. No objections .o the loan were made by any member of the public as part of those hearings, nor has the Count} secelved any further comment regarding the ownership structure of this business. Sup .rvisor Schug abstained from voting regarding this application, and the resolution authorizing su mission of this application was approved unanimously. The newspap ' ardde which appeared on page two of the Ithaca Journal the day of the public hearing Is attahed to this section for review. Also, a copy of the shareholder structure of Cayuga Press attached. As part of this oan application, Supervisor Schug will abstain from voting on any matter related to this appllca01 The County economic c The Cayuga the only cc( County this Tompkins Cou the need to re- on a County-wi the creation of for the Town, this worthy pro Ing Department and the Town of Dryden both conducted solicitations for )inent and other community development projects in the Town of Dryden. project Is the only project that carne forward as part of that solicitation, and is development project being offered in the Small Cities round from Tompkins ,ty considered applying for funding for this project as a Cowl application, but and the Tompkins County Homeownership Program was seen as a greater need le basis in the 1999 round of funding. The Town Is also extremely interested In t local Revolving Loan Fund that will allow it to target appropriate opportunities 'his combination of factors caused the Town of Dryden to apply for funding for ect. The Town has �ommitted to having the Tompkins County Planning Department provide the administrative cervices for this project. As a neutral, third -party that has a great deal of experience In providing such services, the County's contribution will assist ensuring a fair lending process for Cayuga Press, The Town has and has deten maximize Cayr growth. With( and expand th opportunities. is The loan from the mamined proforma and other flnanclal Information supplied by Cayuga Press ned that the rate, term, and size of the assistance are appropriate. The loan will p Press's opportunities to grow, prosper and achieve Its opportunities for I the Small Cities CDBG assistance, Cayuga Press will miss opportunities to grow �r operations, costing the Town of Dryden and Cayuga Press economic Press of Ithaca is also appropriate because of the public benefits derived project, which are ennumerated below; P.07 1190 J JUL -10 -2000 13:30 . Sbarr OurSnrnjW thl TIor1 pnxnad by AMERICAN EXPRESS: and WILLIAMS- 50NOMA 108 W. Buffalo St. Ithaca a NY a 14850 (607) 277 -6962 fax (60 7) 277 -037.7 July 10, 2000 C.S.P. MANAGEMENT Dryden Town Pow Dryden, NY 1 053 Dear Members of the Board: E507 277 0377 P.02 It is with great pleasure that I write this letter on behalf of The Cayuga Press. For thq last five years I have been the co -chair of Taste of the Nation, an extremely successful fund raiser for hunger relief held in Ithaca. The last four years. The Cayuga P ss has donated the .printing of our'event poster, a beautiful four color piece ofrt that serves as. one of the primary promotional pieces for the event. Their interest s truly genuine and their enthusiastic participation is evidenced by the wonderful finished product that becomes a collectors item each year. Cayuga Press' generous corporate sponsorship of Taste of the Nation has enabled us to make significant contributions to anti- hunger agencies here in Tompkins County. My w rk with Taste of the Nation, as well as other charitable fund raising efforts in whic h I participate has taught me well the importance of committed corporate sponsorship. The Shug Family and The Cayuga Press has consistently demonstrated his commitment = we are proud to call them our partner. WILLUMS-SONOMA, INC. i Sincerely, OL C411111? .5:,,p TOTAL P.02 07/11/00 TUE 17:08 FAX 9 1 563 8923 AT -A- GLANCE VA AToA•GLANCE %A' July 11, 2000 Mr, Peter Schug President Cayuga Press of Ithaca 1650 Hanshaw Road Ithaca, NY 14850 Dear Peter: It is my pleasure to take this time to express my satisfaction with your company. Actually, it goes well beyond satisfaction. When I began working with what was then Keith Clark in 1996, Cayuga Press was not one of the front runner suppliers in our "stable" of printers, However, as our company grew into becoming the AT -A- GLANCE Group and just recently as we were purchased by the Mead Corporation of Dayton, Ohio, Cayuga Press has moved forward and has grown into one of our key printers. That is impressive when you consider we work with printers from all over the USA and the world! Cayuga Press has remained competitive in a very competitive marketplace. Your ongoing attention to the • ever- changing Graphics Arts industry's technology has impressed me as a Print Buyer. You have stayed abreast of current trends in the Prepress arena as well as invested in keeping your pressroom at the "state of the art" level. I urge you to continue this technology pathway with a passion! If our past is any indication of our future, we, as part of the Mead Consumer and Office Products Group will continue to dominate the dated goods market segments in both the traditional office and consumer markets. Through acquisition we have entered markets that we never ventured into in the past, I anticipate that this trend will continue. In order to support that growth, AT -A- GLANCE will continue to depend on key suppliers like Cayuga Press so we can remain competitive in our marketplaces. The next few years will be years of tremendous growth for our company,., a future that us dependent upon strong supplier partnerships. I look forward to the opportunity to work with Cayuga Press in the years to come, Thanks again to Cayuga Press for contributing to our success! 2 Rick Myers Print Buyer AT -A- GLANCE 101 O'Neil Road Sidney, NY 13EI38 607 -S63 -9411 Fax: 607 -S63 -8923 0 001 Town of Dryden Board Dryden, NY 13053 Re: Cayuga Press of Ithaca, Inc. Dear Board members, S IKAN E, July 12, 2000 C P A 1 have been the accountant for Cayuga Press for over twenty years. In that regard, the HUD loan application the Company made through the Town of Dryden is part of the financing package needed to finance a $1.3 million dollar printing press. This press will provide further employment opportunities right here in Tompkins County as well as solidify the Companies ability to maintain the quality workmanship and diversified products its' customers demand. The Company has been waiting patiently for this final portion of the financing package. Please approve the HUD loan without further delay, to insure this important employer in the Town of Dryden will continue to succeed and prosper. Bruce S. Kane, CPA Cornell Business & Technology Park, 33 Thornwood Drive, Suite 200, Ithaca, New York 14850 ■ 607.257,4848, Fax: 607.257.0137 E bskane I 0 @yahoo.com • I To: Town Board of Dryden Date:7 /12/00 From: Dennis Mastro a "' Regional Manager Community Outreach and Development NYSEG Corporation Subject: Cayuga Press of Ithaca This letter of support is presented to the Board in recognition of Cayuga Press of Ithaca as a locally owned and operated company representing a valuable asset to the community. While the business environment in the state and the region is improving, competition continues to challenge our communities to increase and retain local businesses. Businesses like Cayuga Press with their skilled, semi - skilled and entry level positions are a necessary part of a healthy growing tax base able to sustain a vibrant quality of life in our communities. Cayuga Press, like many other local employers ha business organizations locally.and has strongly development issues. Businesses like Cayuga.Press opportunity to improve future job development an programs within Tompkins county. An Equal Opportunity Employer s been active in supported business represent a significant d employee development New York State Electric & Gas Corporation P.O. Box 3287, Ithaca, New York 14852 -3287 (607) 347 -4131 JUL 12 100 10:32 TO 607 257 2843 FROM DRYDEN AGWAY T -830 P.02 den Apawsav • Trustworthy Hardware 59 West Main Street :'O Box 46 DiA�den, NY 13053 Phone 607 844 8663 Fax 607 844 9744 email dryag59 @aol.com July 12, 2000 To The Dryden Town Supervisor & Town Board: I'm writing in support of a HUD grant for Cayuga Press. Being a long- standing business man and property owner in the Town of Dryden, I have done business with Cayuga Press. I have never had a problem and support their business and expansion fully. It is unfortunate that someone who has served this town government would be punished. Please put personal and political feelings aside and do what is best for the Town of Dryden. In the best interest of everyone please give this matter your most sincere consideration. Thank you for your consideration of my opinion and also thank you for serving your community. Sincerely, Anthony Zuchko Owner of Dryden Agway ",iW P.O. Box 67 / 42 plm .Stl Dryden, N.Y. 13053 Phone: (607) 844.16113 Fix (607) 844-5269 July -12, 2000 Town Of Dryden 'l "own Hall 65 E. Main Street Dryden, New York 13053 Dear Board Members: We at Bagelover's, Inc, a business operating in the village and town of Dryden, New York, would like to add our support to Cayuga Press, Inc,, HUD Application. We were aided by some village funds almost three years ago when we purchased our existing plant on Elm Street. We know how important low cost borrowing can be to growing companies. The owners and managers of Cayuga Press are tint; business people and add a lot to the community in many ways, This loan would certainly have a very good impact on the town and village of Dryden. We hope you will support this loan application. Sincerely, L �.Ataez 9 Charles L. Tallman, president Bagelover' Inc. CL 1'lkss i E0d Wd62 : T 0 000E ET , i of 69ES"e8 .09T ' ON SNOHd S9nffl; 1HQ 6. nX 4 -- - -• „ T1 �l vi i is vv 11+w-DO NV, V43 U'I /U1 Charles 1'I. Spaulding, CIC george John W. Hailcy, CIC .Talley �,,,, , Jnc, July 12, 2000 Barney Schug Cayuga Press of 'rth,aca,, Inc. 1550 Ha.nshaw Road. Ithaca., NY 1_4850 Dear_ Barney: Insurance Counselors Slncc 19:36 As a. 64 year member of the Town Of Dryden business community, I am writing to indicate my support of Cayuga Pr_eas of T.t-lil,aca., Inc. and. its application for a grant through. the Department of Housing and Urban. Development (ZJUD) . T. believe that this grant would create positive economic development within. the Town of Dryden and Tompkins County, This is an opportunity for Federal anal. Local Government to assist a small business in creating more jobs and. econ.om.ic Opportunity for the citizens of. our area. This is an essential role that all. levels of government should strive for. In.vesti_n.g in, Private enterprise is one area that we a,s citizen s receive a. possitive return, on our tax dollars through, increases in prod.u,ct i v' ty, job creation., job advancement and tax base growth a.n.d a. reduction. in. the need for public a.ssi.stan.ce (taxes), I would advise our. loca.1 government officials to d.o the right thing for the Town. of Dryden and support this HUD application. The application Iaa.s been m.a,de under, the rules set forth by HUD and. should, be jud-ged. solely based on. its merits and, riot be clou.d.ed by political, motivations. Best wishes to you in. these endeavors support ! ! 1 l Si_n.c�re , oh.n. W. Salley, CIC Executive Vice President • JON/110364 You b.ave our f ul. i. S S01.10174 STREET, P.O. BOX 575, DRYJ,)EN, NEW YORK 13053.0575 TIRL! (607) 844 -8626 (800) 579 -8626 rAX! (607) 8444747 • O O H~�. �O U U w 3 o d o -j �b a w > o Q O V o • - cd rn Z o U U Vr ti p �, c�v' c�C C 3q F'Yl DN� O Yp-1 ..N- yp �U.. N tp ? . iWr x to U LL O a U o a� iz C) Z 03 " C', c 3 gcUd b a) Cli Fm ° o o Q } 4.000 OD ,�"� Cz U LLI CI z � ci u 03 .. ui v cad z , o 0 3 0 w Fn U a °A F-' I- • • Dryden Town Board Meeting Dryden Town Hall July 12, 2000 Comments Regarding Cayuga Press HUD Grant My name is Michael Stamm. I am the President of Tompkins County Area Development; the community's lead economic development agency. I am here this evening to speak in support of the Cayuga Press HUD grant. Like most economic development organizations, our mission is to create quality employment opportunities for local residents and strengthen the tax base. And, like most organizations, we focus our efforts on companies that pay above average wages, good benefits, and offer an opportunity for advancement to employees. Unlike other organizations in New York State and, in fact, the United States, we devote almost all of our efforts to helping existing businesses rather than wasting scarce community resources on attempts to attract the next major plant relocation to Tompkins County. We strongly believe it is a much better strategy to work with companies already located in the county, companies already committed to our community, rather than investing incentives in companies that are here today, gone tomorrow. Our strategy is based, in part, on the experiences of other communities that have delivered enormous incentive packages to companies, only to see those same companies leave their community and their loyal employees after the value of the tax breaks and cheap money has run out. TCAD has a long and productive relationship with Cayuga Press and is proud to say that we have helped deliver to the company a variety of government incentive programs. The company has always met or exceeded their commitment of employment creation and has always met, on time, their financial commitments. Cayuga Press, in our opinion, is the ideal candidate for community assistance. The company is committed to Tompkins County, pays above average wages, offers good benefits, and offers entry level employees room for advancement. And, importantly, company management is involved and committed to the community. While TCAD does not have a direct role in the delivery of HUD programs, we do work closely with the County Planning Department, helping them identify likely applicants for the program. In our experience, the County Planning Department goes to great lengths to advertise the availability of the program. And once a prospect is identified, they are quite careful to follow all of the many HUD guidelines and requirements. In the last few years, in particular, the Tompkins County Planning Department has done an excellent job of managing this program on behalf of the community. In summary, TCAD strongly supports the Town of Dryden's approval of a HUD loan to Cayuga Press. The loan will help create many much - needed jobs for local residents. MBS 7/12/00 0 • July 12, 2000 Town of Dryden Town Hall Dryden, New York V/ We, the undersigned, are employees of Cayuga Press of Ithaca, Inc. and we would like you to know that we support the approval of the HUD loan to our company. Cayuga Press has been a leader in the printing industry in this area for the last 25 years and we have worked together as a team in order to stay in the forefront. At Cayuga Press, we strive to help our customers get the best possible results from their printing jobs, which is often a challenge since we are in a rapidly changing field. In order to keep up with technology, we need to update equipment frequently. In the prepress area alone, computers, RIPs and imagesetters have to be replaced in order to keep up with new technology that is literally changing every day. In the printing and bindery area, new presses and bindery equipment must be maintained and updated as well. All of these changes require technically savvy employees. Last year, in order to be Y2K compliant, we spent upwards of $200,000 on new equipment. We understand the Federal HUD loan will not only benefit Cayuga Press, but the Town of Dryden as well, since we would be repaying the loan, with interest, to the Town of Dryden and this imoney would then be intended for future business loans. We feel this loan will help us to grow and stay competitive in the printing industry. We also would like to feel that our company is an important part of the Dryden community. Many of us will attend the town meeting tonight to show our support for Cayuga Press, and also for the Schug family. Some of us will be unable to attend, but all of us hope the Town will bipartisanly support this loan to our company. z Sincerely, Team Cayuga jo�� Z� r t�l f xwwll� 71 • ViT �• r IL July 11, 2000 Dryden Town Board Dryden, NY 13053 Dear Town Board Members: As one of the largest employers in the Township of Dryden, I wold like to express my support for Cayuga Press receiving the HUD loan. Cayuga Press is one of our largest suppliers. They do most of our sheetfed printing ever since our need for sheetfed work has increased. We continue to send most of our sheetfed printing to them. We are a large format web printer with several national accounts and often need to print sheetfed supplements and components to be bound with our web printing. They continue to be an excellent supplier. We do not in any way compete with Cayuga Press, in fact we have entered into a partnership with Cayuga Press to pursue potential business, each lending their unique expertise to the proposal. We look forward to continuing this type of relationship with them. • Again, I would like to reiterate that Cayuga Press of Ithaca is a fine supplier and just the type of business that we need to encourage in this town. Yours truly, James C. Kirkwood President Wilcox Press, Inc. JCK/jrh �o0 sox s haca, NY 14850 (607) 272.1212, ext. 100 Fax: (607) 273.9101 www wilcoxpress.com 0 0 Memorandum DATE: June 30, 2000 TO: Dryden Town Board FROM: Deborah Grantham, Dryden Town Board RE: HUD grant/Cayuga Press application Given that: 1. The Cayuga Press application for a HUD loan through the Town of Dryden was facilitated by James Schug, who was Town Supervisor of the Town of Dryden at the time; 2. James Schug is an 11% shareholder in Cayuga Press and his children and wife own the remaining interest in Cayuga Press; 3. This relationship constitutes a. conflict of interest; 4. HUD continues to regard the relationship a conflict of interest even after James Schug left the office of Town Supervisor; 5. HUD funding is restricted from creating an unfair advantage to competing companies in the same community; 6. Wilcox Press in the Town of Dryden provides the same services so is a competitor in the same community; and 7. Wilcox Press is selling bonds to raise funds for a printing press; Therefore, I move that: • the Town Board of the Town of Dryden deny the HUD loan to Cayuga Press; and • the Town Board authorize Town Supervisor Mark Varvayanis to request that HUD award the grant to the Town of Dryden on the condition that the Town conduct a new application process in order that another or other businesses in the Town of Dryden might benefit from the loan. r Statement read by Arthur Bergey at Town of Dryden July 12, 2000 7:15 p.m. public hearing on exemption to HUD ruling on conflict of interest. My name is Arthur Berkey. l am a Town of Dryden resident living at 1205 Ellis Hollow Road, Ithaca, NY 14850. Telephone 507: 272 =0280 I fully support the HUD determination of Mr. Schug's conflict of interest in funds for the expansion of Cayuga Press, I and strongly oppose an approval for an exemption to the HUD, determination. Supervisor Schug signing an application for HUD funding to partially pay for the expansion of the Cayuga Press owned by Mr. Schug and his immediate family clearly constitutes a conflict of interest - - not "a wild goose chase" as characterized by Mr. Schug. Also, Town attorney M. Perkins sending a March 2000 non -Board authorized letter to HUD urging an exemption to HUD's conflict ruling indicates Mr. Schug's continuing influence and involvement. I also believe that the conflict of interest should have been obvious to the Dryden Town Board majority in 1998 =99 (Council woman Deborah Grantham did object) rather than it being necessary for HUD to make the determination. Further, lack of reasonable public notice by Mr. Schug at the time of the proposal that HUD funding was. available would have limited submission of applications competing with Cayuga Press. Thus, the conflict of interest continues and Mr. Schug not being reelected in 1999 is irrelevant. Cayuga Press should not receive HUD funds iven the continuing conflict of 9 9 interest and the Town Board should seek another applicant within our Town following an open process. There is a perception by many Town of Dryden residents of a pattern of conflict of interest by some Board members. In addition to Schug's conflict on the HUD application, other examples are the unsuccessful attempt by Councilman Beck to have Tompkins County repair a bridge at a date earlier than scheduled to reduce mileage for his moving machinery. There are rumors of Town Attorney Perkins representing the Town against individuals whom he is 'representing in other legal matters. There is also the ethical problem of the majority of the Board (Varvayanis and Grantham excepted)) voting to increase the Town Clerk's salary 10% immediately following her election. In summary, upholding the HUD ruling of conflict of interest and denial of funds to Cayuga Press is needed as a significant step to reinstate ethical standards and open government in the Town of Dryden. I request that: copy of this statement be sent to HUD. as part of the record of this public hearing.Thank you for this opportunity to express my views regarding our Town. \_ C IF T n 1 own cat i��yclen Ambulance 6 -Fast Main St. n Dryden, ?NIA' 13 0 5 3 . Phone (607) 844 -3064 Fax (607) 844 -3249 JOB L)ESCRIPTTON Director of Operations 1. Scope: a. To define duties and responsibilities of the Director of Operations for the Town of Dryden Ambulance District. ?. ( ual.ifications: a. Shall be a New York State certified Paramedic and Authorized by Medical Control To practice at the Paramedic level. b. Shall. be employed as a Full Time Paramedic for the Tovyn of Braden. • c. Shall have a working knoN'Vledge of the operations of Nepturie Hose Co. and Dryden :ambulance Inc. d, Shall have a working knowledge of computers. e. Shall be knowledgeable in the billing of patients for services rendered by Dryden lmbulance Inc. 3. Duties: a. Supervise all full and part time employees of the Town of Dryden Ambulance District. b. Compile monthly activity and financial reports for the Town of Dryden Ambulance District and file with the Dryden Town Board. c. Seine on the Town of Dryden Ambulance Conunittee as an adviser to the Committee. d. Responsible for all verbal and written warnings of the Full and Part time employees of the Town of Dryden Ambulance District. e. Shall be responsible for checking and signing all time cards of the Full and Pant tittle employees. The Director of Operations shall be responsible for all. over tirne hours worked by the full and part time employees f Shall be responsible for reviewing all PLR's written by the Full and Part time employees for quality of care and appropriate times on all calls and take corrective actions. g. Shall be responsible for reviewing all PLR's written by the volunteer staff for quality of care. appropriate times on calls and report any discrepancies to the person • designated by the ELVIS chief of Dryden Ambulance Inc. for further action. h. Shall be responsible for scheduling all full and part time employees and seeing that all shifts are covered by an employee as deemed necessary by the Dryden Town 7/ ijl' • Board. This is to include covering any open shift that is not covered by another Employee. i. Al other duties associated with being a full dune employee of the. Town of Dryden District. The Director of Operations for the Town of Dryden Ambulance lllistrA t shall rvp " , directly to the Supervisor of tlue Torn of Dryden or Chainnan of the Town of Dryden :=Ambulance Committee. r ,, • Board. This is to include covering any open shift that is not covered by another Employee. i. Al other duties associated with being a full dune employee of the. Town of Dryden District. The Director of Operations for the Town of Dryden Ambulance lllistrA t shall rvp " , directly to the Supervisor of tlue Torn of Dryden or Chainnan of the Town of Dryden :=Ambulance Committee. r • w' r. CC 7/1 J(JCI Town of Dryden Arnbul ante 65 East Main St. Dryden, NY 1' )053 Phone ('607) 844 -5064 Fax (607) 844 -3249 JOB DESCRIPTION Cle&Taramedic 1. Scope: a. To define the duties and responsibilities of ClerkTaramedic for the Town of Dryden ,kmbulance District. 2. Qualifications: a• Shall be a New Fork State certified Paramedic and Authorized by Medical Control to practice at the Paramedic levelfor a minimum of 2 years. b. Shall demonstrate through experience the ability to operate on a 2 person crew with a partner without certification v c. Shall be able to show a minimum of 200 calls as ALS crew chief. d. Shall have a working knowledge of computers. 3. Duties and Responsibilities: a. Shall be the responsibility of all employees to keep accurate record of time worked by punching in and out on the time clock at the beginning and ending of their shift. b. Report to the Director of Operations in writing the reason for all over time worked Including but not limited so late calls. multiple calls, etc. c. Be responsible to do an equipment check on the first due ambulance at the beginning of every shift to insure the vehicle is properly equipped and ready to respond to emergency calls. d. Respond on all emergency calls when the appropriate level of Volunteer staff is not available. e. Assure proper carp and documentation of all patients while working for the Town of Dryden Ambulance .District. f. Enter all patient infonration into the computer for billing purposes and do billing on a weekly basis. g. Review all PCR's for completeness and proper care and report discrepancies to the Director of Operations of the Dryden Ambulance District. It Complete all other duties as assigned by the Director of Operations of the Town of Dryden Ambulance District in a timely manner. The ClerkParamedic shall answer directly to the Director of Operations for the Di)�dcn Ambulance District. • C C . Ti 1�44 7 /-Ilve Town of Dryden Ambulance 65 East Main St. Dn,rden_ NV 13053 J Phone (647) 844 -5064 Fax (607) 844 -3249 JOB DESCRIP T IONT Part Time Paramedic 1. Scope: a. To define the duties and responsibilities of Part Tuna Pira nedic for the Town of Dryden'Ambulance District, 2. Qualifications: a. Shall be a New York State certified Paramedic and Authorized by Avledical Control to practice at the Paramedic level for a n nwi auin of 2. %wars, b. Shall demonstrate through experience the ability to operate on a 2 person crew with. a partner without certification c. Shall be able to show a minimum of 200 calls as AT S crew chief'. 3. Duties and Responsibilities: a. Shall be the responsibility of all employees to keep accurate record of time worked by punching in and out on the time clock at the beginning and ending of their shift. b. Be responsible to do an equipment check on the first due ambulance at the beginning of every shift to insure the vehicle is properly equipped and ready to rcpond to emergency calls, c. Respond on all emergency calls when the appropriate level of Volunteer staff is not aVailable. d. Assure proper care and documentation of all patients while working for the Town of Dryden Ambulance District. e. Completa all other duties_ as assigned by the Director of Operations of the Town of Dryden Ambulance District in .a timely manner. The Part Time Paramedic shall answer directly'to the Director of Operations for the Dryden Ambulance District. J Name - {Please Print) Town of Dryden Special Town Board Meeting July 12, 2000 Address C Y 4( C o T-C k, , // 6/ILi*Q4 \j Dv/ �T doN Yv, NEW Imn cf Dryden • Special Town Board Meeting July 12, 2000 jock,01 ov�ltt° 1- O r t L -e(vL z ✓ Address �( ( ygsb d 3� C�a S� e4-y,r,L A. 13 o 6 Z