HomeMy WebLinkAbout2012-06-20 Danby Town Board
Minutes of Special Meeting/Public Hearing
June 20, 2012
Present:
Supervisor: Ric Dietrich
Councilpersons: Leslie Connors, Kathy Halton
Others Present:
Deputy Town Clerk Susan McLellan
Code Office Sue Beeners
Bookkeeper Laura Shawley
RCAP Candace Balmer
T. G. Miller David Herrick
Water District Carl Seamon, Marge Seamon, Gene Beavers, Skip Fairchild
John Sill, Tom Westmiller,Tod Sukontarak
Public John W Smith,Polly McClure,Paul Hahinen,Roy Casterline, Matt Cooper,
Don Wright, Ross and Elaine Cortright,Arlene B,Mare Grace O'Connor,
Joel and Sarah Gagnon, Peter Fraissinet, and several others.
The Special Meeting of the Danby Town Board and West Danby Water District was
opened at 7:05pm.
Presentation/Opening Remarks
The Town Supervisor,Ric Dietrich, explained that this Public Hearing was required as part of a
grant application to the Community Development Block Grant for desired improvements to the West
Danby Water District. He noted that the income survey is a particularly important aspect of the grant
proposal.A 85%return on the survey is required.
The Town Code Officer, Sue Beeners read the following Public Hearing Notice:
The Town of Danby Town Board and the West Danby Board of Water Commissioners will hold a public hear-
ing on Wednesday, June 20, 2012 at the West Danby Fire Station,on Sylvan Lane in West Danby.The purpose
of this meeting is to present information about community development activities that could be funded through
the NYS Office of Community Renewal's Community Development Block Grant Program.That Program is mak-
ing approximately$40 million available statewide in its 2012 Annual Competitive Round Program.
The Town may be eligible to apply for up to$600,000 for Public Infrastructure from the program and up to
$400,000 toward Housing and Public Facilities.Applications for public infrastructure and public facilities funds
are due July 16, 2012.Applications for CDBG housing funds are due August 17, 2012.A portion of the agenda
will show how these funds could be used to advance various community development needs in the Town of
Danby.
A specific purpose of this meeting is to present information about funding opportunities related to the Pro-
posed West Danby Water System Improvement Project,through the Community Development Block Grant Pro-
gram.This project may be eligible for grants through this Program in order to replace the water tank, replace
household meters, conduct a leak detection survey, change flushing assemblies, and install an automated read-
ing system.An income survey of households in the Water District is presently being conducted to verify eligibility
for this grant program.
Participation and comment from anyone in the community is important to the proper consideration and ad-
vancement of an application to this grant program.Written comments are also welcome and may be directed to
the Danby Town Clerk, at townclerk @town.danby.ny.us, or mailed to Town of Danby, 1830 Danby Road, Ithaca
New York, 14850. Specific questions or comments related to the Proposed West Danby Water System Improve-
ment Program may also be directed to the West Danby Water District Board of Commissioners, do Carl
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Seamon,Water Plant Superintendent, 2554 West Danby Road, Spencer, NY, 14883, 607.272.9169,
danbyhwy @yahoo.com.
Sue Beeners gave an overview of the grant options currently being pursued for the public infra-
structure project of improving the Water District system. If the grant is awarded, a second meeting
will be held to provide additional information.
In 1974 the Federal Housing and Community Development Act set up the Community Develop-
ment Block Grant program to develop viable communities by providing decent housing, a suitable
living environment, and expanding economic opportunities,principally for persons of low and mod-
erate income.New York State has a similar program.Approximately$40 million of NYS CDBG
funds may be available to municipalities in 2012. Public infrastructure projects(for water/sewer
needs)have a funding limit of$600,000.
Beeners noted that at least 51%of the persons benefitting from the infrastructure improvements
must qualify as"low to moderate income"(LMI) in order for the project to qualify for the grant. The
grant asks that applicants demonstrate the impact of the funds on the reduction of debt burden and
annual water fees on LMI households.
David Herrick(an engineer with T.G. Miller,P.C.) explained the needs of the water system. TG
Miller P.C. conducted a review of the entire system in 2009,roughly 40 years after the original con-
struction of components of the West Danby water system. Some needed improvements were noted in
at that time.
Since 2009, additional problems have been found in the condition of the welded steel water stor-
age tank. The structural painted steel has corroded and would be very costly to repair. The engineers
have recommended replacing the tank with a more robust system(a 90,000 gallon tank replacing the
current 50,000 gallon tank),providing better water supply for fire fighting. The replacement tank
would have a longer life than repairing the existing tank.Additional upgrades have been recom-
mended including improved flushing hydrants and water meters. These upgrades would more accu-
rately measure water usage and assist with leak detection. The total cost of improvements is in the
range of$400,000
Herrick described the importance of grant opportunities to fund these improvements. If improve-
ments were financed by the district over a 20 year period,It is projected that residents in the water
district users would see an increase of$850 per year in their water bills. Clearly this is a large amount
in such a small,rural water district.
General questions and Answers
Herrick,Beeners and others responded to comments and questions by residents. Residents attend-
ing the hearing asked whether the general water quality would improve with these upgrades(the cur-
rent water sometimes has a brown color and off-flavor),whether it is possible to refurbish metering
parts of the system, and whether it was advisable to fund the project through long term loans.
Herrick described the water quality as "reasonable"and stated that there were no health depart-
ment concerns. He went on to suggest that more frequent flushing of the system(through hydrants)
might improve the water quality for users. Refurbishing water meters is not cost effective.Addition-
ally,the company is no longer in business and so parts are not available.
Water Commissioner Gene Beavers spoke about the importance of improved meters and leak de-
tection. The District is aware of a leak problem and some non-functioning meters.The life span of
meters is typically 7-10 years and some of these are 40 years old.All parts of the system improvement
fit together.
There was a question as to the number of items included and if it would be cheaper to do just part
of the project. Herrick responded that all parts of the project are important. The tank replacement is
the largest cost,but flushing hydrants and meters are also important. He also noted that these grants
are a good opportunity to really improve the system without raising rates.
There was a question about the financing terms and whether it could spread over a longer time.
Lengthy finance agreements usually have a higher interest rate;payments may outlast the system,
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causing the District to make payments on obsolete equipment. This is why the District is seeking
grants.
The Survey
Candace Balmer provided information about the income survey related to this competitive grant.
An income survey of households in the Water District is presently being conducted to verify eligibil-
ity for this grant program.At least 51%of the persons benefitting from the infrastructure improve-
ments must qualify as"low to moderate income"(LMI) in order for the project to qualify for the
grant. Balmer explained the income levels which would be classified as low to moderate income.
Applications are due July 15. It is necessary to document that the district is eligible to apply for
the grant.West Danby will be competing with other applications across the state. The sooner the
community reaches the minimum level of return on the survey,the more time there will be to com-
plete the grant application by that deadline.The Block grant program usually announces awards in
late August.
Balmer and Beeners noted that this survey could also be used for other grant applications and low
or zero interest loan programs.While there are other options,the Block grant is most attractive as it
would fully fund the project.
Balmer stated that she rarely sees proposals that can be accomplished under the$600,000 limit
and called this proposal"exciting"as all improvements could be completed without needing to take
out a loan. Balmer encouraged the town to make sure that all possible needs are included in the grant
proposal, as it is currently lower than the average request. She also encouraged the Water District to
include a rate increase which could be saved as a Capitol Reserve for the next time improvements are
needed.
All of the presenters noted that the income survey is a particularly important aspect of the grant
proposal. It is necessary to document that the district is eligible to apply for the grant. Letters, includ-
ing a confidential income survey,have been mailed to households in the Water District.An 85%re-
turn on the survey is needed in order to properly document income eligibility for the grant. These sur-
veys will be collected,unopened, in Town Hall and forwarded to RCAP Solutions(in Massachusetts)
where they will be opened and tabulated. The surveys are completely confidential; no one in the town
will see the surveys.
Beavers reiterated his earlier remarks about meters,leaks, and the system's useful lifetime.
There was a question about whether the Water District will create a reserve fund for future main-
tenance and improvements in the water district. Beavers answered that the District has has started
budgeting money for asset management in order to do the maintenance, so that this level of need
doesn't come again in another 20 years. The Water District would like to move to a consumption rate
instead of a taxed-based rate on property. This will only be possible when there are working meters.
There is currently a large amount of water which is unaccounted for.
Adjournment
The Meeting was adjourned at 8:05pm.
Pamela S. Goddard,Town Clerk
(These minutes were compiled from a sound recording and notes taken by Sue Beeners.)
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