HomeMy WebLinkAboutTB Minutes 1973-04-02o2(^
TOWN OP ITHACA
SPECIAL MEETING
April 2, 1973
At a Special Meeting of the Town Boaird of the Town of Ithaca, Tomnkins
County, New York, held at the Town of Ithaca Offices at 108 East Green
Street, Ithaca, New York, on the 2nd day of April, 1973, at 7:30 p.m.,
there were
PRESET:
ABSENT:
ALSO PRESENT:
( \
Walter Jt. Schwan, Supervisor
Noel Desch, Councilman
Victor Del Rosso, Coui^cilman
Robert N. Powers, Councilman
1
Andrew W. McElweb^ Councilman
,i
James V* Biiyoucobi I'own Attorney
Mrs. Barbara Holcbmb, Chairman,
Peter K. Franceses Planning Consultant
Kenneth Krbohs, Town Planner-Engineer
Arthur li. Adams, GfSeley & Hansen, Engineers
G. Gordon Behn, N* "t* State Department of
Environmental Conservation, Lansing
Vaughn Ci Behh, Cornell University
Arthur L. Berkey, 1^8 Christopher Circle
James Duhiap, L62ief Engineers, Inc.
T. Hbokdr, Lozief Engineers, Inc.
Charles P* Howelli Supervisor, Town of Lansing
James W. Howe11, Lansing
Mrs. Dooley Kiefer, League of Women Voters
E. J. LaVigne, Lansing
Anthony Leonardo, 1132 Danby Road
Clara Leonardo, 1132 Danby Road
Mrs. Beverly Livesay, 147 Snyder Hill Road
Herbert Mahr, 103 Judd Palls Road
Lorraine McCue, 101 Regency Lane
Joseph A. Rundle, Alderman, City of Ithaca
Jim Showacre, Lansing
Donald E. Slattery, Alderman, City of Ithaca
Charles W. Young, Town of Ithaca
Radio, TV, and Press
The meeting was called to order at 7:30 p.m.
Proof of posting and publication of notices of public hearings having
been presented, the Supervisor opened the hearings scheduled for 7:30
p.m. and 8:00, Bolton Point Project I and Bolton Point Project n,
both hearings to be held concurrently.
Supervisor Schwan said the purpose of the meetings is to conduct
public hearings with respect to an intermunicipal system for the
development of a water supply system from Bolton Point on Cayuga Lake,
Project I covering the Towns of Ithaca, Lansing, Dryden, and the
Village of Cayuga Heights and Project II covering the Towns of Ithaca,
Dryden, and the Village of Cayuga Heights.
Supervisor Schwan traced the history of the water problem of the
Town of Ithaca and the Towns of Dryden and Lansing and the Village
of Cayuga Heights, going back to March of 1970, when the City of
Ithaca began to speak of a water shortage. The Town of Ithaca com
missioned Lozier Engineers, Inc. to do a preliminary study of the
feasibility of a Town water system. This study was based on a previous
Town study done in 1967 by O'Brien & Geer. The O'Brien & Geer study
recommended Bolton Point as a possible source of water supply, with
the wells in Inlet Valley as a second alternative. The Town of Ithaca
hired Layne-New York Well Drillers to investigate the possibility of a
well aquifer at Inlet Valley. Two aquifers were located, one deep and
one shallow, which could produce one and a half million gallons of
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' - 2 - April 2, 1973
water a day, each, but both aquifers were hard and had iron in them.
The City of Ithaca rejected the Town*s offer to develop the Inlet
Valley well field and pump the water into the City system, claiming
incompatibility with the City system^ The City then hired Nussbaumer
& Clarke, engineers, to investigate'Cayuga Inlet. The Town Board
was not inclined to join the City iU the development of Cayuga Inlet
source because it did not feel the water was of a quality the Town
WR would want to treat and because of the possibility of a flow reversal.
^ Further, the City system would have had a reserve capacity of less
than a million gallons a day, nor did the Town ever have a firm esti
mate of the cost of joining with the City in the development of
Cayuga Inlet to increase the City^s capacity, finally, the Town
decided to join with Lansing, Dryden, apd the Village of Cayuga
Heights in the development of Bolton Point, in November of 1972 the
Town of Ithaca received approval from the Department of Environmental
Conservation to proceed with the Bolton Point project.
Using Town of Ithaca enlarged tax maps, as, combined in one large map
covering the entire town. Supervisor Schwah then described the loca
tion of pump stations and standpipe^ in th^ present system, and how
water would be supplied from Bolton Point to the four cooperating
municipalities. He indicated at thO map locations of proposed trans
mission main, existing water mains, existihg and proposed pump stations
existing and proposed water standpipes. He also explained the dele
tion of West Hill from the system as origihally proposed. (West Hill
to be served by the City of Ithaca). Supervisor Schwap explained that
since Bolton Point was originally proposed HUD and Appalachian funds
to the extent of one and three quarters million dollars which the
Town was eligible for are no longer available and for this reason
the West Hill area proposed as part of the original proposal is to
be deleted at a saving estimated at $700,000.
The Supervisor explained that the system will be managed by a Com-
f \ mission composed of two members from each of the four municipalities,
pne of whom must be an elected representative of the municipality,
the Commissioners to serve at the pleasure of the Town Boards. Pro-
(Towns of Ithaca, Lansing, Dryden ajid the Village of Cayuga
Heights) is predicated on a borrowing of $4,150,000 of which the
Town of Ithaca's share would be $2,551,000, and Project II (Towns
of Ithaca and Dryden and the Village of Cayuga Heights) is predicated
on a borrowing of $1,930,000 of which the Town of Ithaca's share
would be $1,420,700.
Attached to these minutes and made a part hereof is a revised finan
cial plan for Bolton Point dated March 29, 1973^ prepared by Super
visor Schwan. The Supervisor used this plan to explain the proposed
shares of the four municipalities in the two projects, indicating
principal and interest payments at 5^ and 4^ borrowings, and operat
ing and maintenance costs, also showing benefit charges for Dryden,
Ithaca, and the Village of Cayuga Heights, assuming $300,000 of water
revenue, at 59^ and borrowings, without HUD grants, and no revenue
sharing.
The system proposed is for an original plant capacity of 6,000,000
gallons per day to the year 1990, and eventually an intake with a
maximum capacity of 24,000,000 gallons a day. The system will improve
_ water pressure in the Village of Cayuga Heights, Renwick Heights, and
other areas of the Town. Where the system is connected to the City
/ it will be valved off. Project I would include construction of the
intaJte and treatment plants and bring the main through the Town of
Lansing to the Lansing-Cayuga Heights village line. This represents
about 685^ of the total, or $4,150,000. The other 32^ would cost
about $1,930,000 and would carry the line on through the Village of
Cayuga Heights and onto South Hill.
At/this point Supervisor Schwan opened the hearing to general comment
and questions.
f \
Walter J, Schwan aREVISED FINANCIAL PLAN — BOLTON POINT 3/29/73
Three things have happened to throw the sharing of 6 MGD out of
whack. Lansing needs more water for Borg-Wamer, the Village alloca
tion was too small and deletion of West Hill decreased the Town of
Ithaca's share.
Revised Shares are as follows;
D I L VCH
1972 Water Use
1975 Water Use
New Allocated Cap, 6 MGD
% of 6 MGD
% of Water Use 1975
.0271
.045
.30
¨ 05
.0238
.92
1.06
3.31
.551
.56
.226
.52
1.69
.282
.274
·2688 Actual
.27 Est.
.70
.117
.1425
P & I @ 5%
0 & M
$312,500
150.900
$15,625
3,580
$172,000
84,500
$ 88,200
41,400
$36,600
21,500
$463,400 $19,205 $256,500 $129,600 $58,100
P & I @ 4%
0 & M
$271,000
150,900
$13i550
3,580
$149,500
84,500
$ 76,500
41^400
$31,700
21,500
$421,900 $17,i30 $234,000 $117,900 $53,200
j I, & VCH assuming $300,000 of water revenueis @ 5^ Inti $35.30; (? 4% Int. $25.20, no HuD Grants and no Revenue
Sharing included.
Comparison of Lansing Water Rate Schedule with D, I, VCH.
Lansing faryden, Ithaca, VCH
Min. 5.000 gal.(a 1.70/1000 gal. Mih. 5.000 gal.@ ;87/1000 gal.
Next 20,000 gal.® .75/1000 gal. Next 20,000 gal.@ .75/1000 gal.
Next 50,000 gal.C? .65/1000 gal. Next 50,000 gal.@ .72/1000 gal.
Next 675,000 gal.@ .50/1000 gal. Next 675,000 gal.C? .533/1000 gal.
Next 750,000 gal.@ .35/1000 gal. Next 150,000,000 gal.® .374/1000 gal
Assume all four of us used the D,I, VCH water rate schedule or
something comparable. D, I, VCH estimated water revenue for 1975 is
i>300,00. Lansing estimated water revenue for 1975 is $90,000. D, I,
VCH share in $6,080,000 of debt while Lansing shares in $4,150,000.
$4,150,000 is 68% of 6,080,000, so let's split D, I, VCH water revenue
between Project I and II using 68% to Project I and 32% to Project II.
Project I receives $204,000 and Project II receives $96,000.
Total VJater Revenue available Project I — $294,000
Total Water Revenue available Project II — 96,000
Interest Rate 5% 4%
Project I Cost $463,400 $421,900
Water Revenue 294,000 294,000
Balance to Raise $169,400 $127,900
Unit Cost using 8900 units $ 19.00 $ 14.40
Using proposed uniform benefit formula to determine units;
L — 2100; D — 360; I — 4810; VCH — 1630 8900
Interest Rate 5% 4%
Water Revenue $90,000 $90,000
Share of Benefit 39,900 30,200
Lansing Pays $129,900 $120,200
Project I ^ D,I,vai Share
of Benefit $129,350 $ 97,940
Project II- D,I,VCH Cost 206,500 167,200
Total $335,850 $265,140
Less Water Revenue Project II 96,000 96,000
$239,850 $169,140
Benefit Charge using 6800 units$ 35.30 $ 24.90
4810 units Ithaca raises — $170,000 $120,000
1630 units VCH raises — 57,500 40,600
360 units Dryden raises — 12,700 8,970
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- 3 - April 2, 1973
What the term of the bonds.-would be. Supervisor
fs not to exceed 4o years, but the bond schedule
>1 ?«. actual pay-off schedule of 30. years, Mrs. Livesay
thft the^Jih^ ° ^®'? office:of the Commissioners,
2" annual basis. It would make removal
nnnnof tf someone had to be removed. Councilman Desch thought ancoS?d be^to™«tff suggested re-apfCintSenti-«. Mr S u unless someone was to be removed for good cause.
^ vSth the suggested a maximum term of a certain number of yearsat L3 member of the Commission might be removed
of ^ f pleasure of the Board. When the maximum number
eOTir^ TMrs,i^!e«f?or« re-appointed or his term wouldMill f suggestion seemed to meet with favoi'. However, theBoard will give further consideration to this matter.
honfff+"fv,=® ^'^® P°a®^^l® use of revenue sharing funds to reduce the
shonfrt ho fhf®o'^ Bolton Poipt, Mr. Mahr thought thisshould be the subject of a separate public bearing, and that other
given priority Iri the Use of revenueSharif fimds. Supervisor Schwan thought that Sr. Mahr might have
point. Although immediate use of reventle sharing could reduce
by about $10.00, the natural anticipated growth couldresult in much lower unit costs, and by 1976 when the system is pro-
ho =K ^o® ^®uefit charge, even without revehue sharing, might
naort $14.00. On that basis, revenue sharing money might well be
mind other programs. The Board will keep this possibility in
question from Mr. Berkey, Supervisor Schwan indicated water use
rate when Bolton Point is producing water would be about the seme rate
as people are paying now to the City.
-mth feiU ®®'^4ey. Supervisor Schwan indicated that the
I ^ f Ithaca was well within its debt limit, even with the proposed
^ Point Project. He explained that the Town'sdebt of $2,063,500 is the Sewer Debt Limit of the Town and
exclusion has been approved by the State Department of
Audit and Control. The Town's debt could go as high as $7,000,000
before it became a matter of concern.
Mr. Berkey Inquired whether the prices used in the Engineer's Report
were^based on 1971-72 price levels and if the Town might not get in
trouble if prices rose at construction time. Mr. Dunlap said the
prices are 1971-72 levels, but that there is included in the estimates
contingency amounts.
Mr. Berkey wondered why the Town is using Lozier Engineers, Inc. again
Since they are the firm which was involved in the South Hill engineer
ing and cost over-runs. He said he recalled that the Town was going
to sue pis firm at one time. Supervisor Schwan said the Town at the
pme had looked into the matter of a possible suit against Lozier
mgpeers. Inc. but abandoned it on insufficient grounds. > He said
further that the Board did not feel the engineers had erreq to the
gperally believed, core borings having been made at the edge
of the right of way, but that the Town had not been permitted to use
the area bored and the pipe had to be moved to an area believei to be
of the same general character. Councilman Desch also not^d that the
cost over-run on rock was only a small fraction of the overall cost
of the South Hill construction.
Upon question about construction start and completion schedule. Super
visor Schwan explained that if the project were approved at this meet
ing it would then be necessary to wait 30 days to see if a petition
with the required number of signatures is presented to hold a special
referendum election (since a resolution by the Town Board in this
matter is subject to. a permissive referendum). After the 30 day
period has elapsed and if no petition is presented, the Town Board
would then have to apply to the State Department of Audit and Control
for permission to create the Bolton Point system. This did not seem
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- 4 >April 2, 1973
to be a problem since the Department of Environmental Conservation
thf approved the project. Supervisor Schwan said hopefullythe project could be designed and go to bids late this fall or early
construction could begin in 1974. As for comple-
or SinL ® producing system by January 1, 1976, plus
Mrs. Dooley Kiefer said she missed the early part of the meeting
repLted%hat^due"to^th®®^ proposal. Supervisor Schwanit was ^^he^unayailability of HUD and Appalachian fundsf iX feasible to include West Hill. This wouldUnue trslrll w^s? Hfu" Project. The City of Ithaca will con-
^^^® City's ability to be connectedi system. Supervisor Schwan said the door is stillbe on^n iintfi System and the door will continue toths rf?v^=a K Bolton Point system reaches design stage. He saidh.™ approached and their best investment would be to?hl £5°® Bolton Point to whatever they might decideRoad^ iin°tn would be (which would appear to be Sheldonars itn? interest, but all the optionswoi M I P® seems to be interested in drawing waterB®rlcey felt it would be much cheaper for
niina^+4 + *'®'^® rather than to makeit Sa^nnaaHM^®?"® possible later date. Mr. Schwan agreed and saidaLj*?? possible to go to a 24 inch main. For the most part only theadditional cost of the pipe is involved. It appears at this time.
B^lto^Point sJsteS"^ interested in Joining in the
Supervisor Schwan called for any further comments or questions. Noother persons wishing to be heard, the Supervisor asked the Town
resolutions had been prepared for the Board's considera-tion. Town Attorney Buyoucos reported that the Town's bondingattorneys had not yet prepared formal resolutions for Project I and
"tbe Town Board, He suggested^ therefore,tnat the meeting be adjourned until Monday, April 9, 1973, at whichtime resolutions would be available for the Board's consideration.
The meeting was adjourned at 8:30 p.m. until 5;00 p.m. April 9, 1973.
Town Clerk