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HomeMy WebLinkAboutTB Minutes 2002-10-17 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 SPECIAL MEETING OF THE ITHACA TOWN BOARD THURSDAY, OCTOBER 17, 2002 AT 5:00 P.M. 215 NORTH TIOGA STREET, ITHACA, NY BOARD MEMBERS PRESENT: Supervisor Valentino, Councilwoman Russell, Councilwoman Grigorov, Councilman Klein, Councilman Lesser, Councilman Burbank, Councilman Niederkorn TOWN OFFICIALS AND STAFF PRESENT: Tee-Ann Hunter, Town Clerk; John Barney, Attorney for the Town; Dan Walker; Town Engineer; Fred Noteboom, Highway Superintendent; Jon Kanter, Director of Planning; Al Carvill, Budget Officer; Judy Drake, Human Resources Manager; Andy Frost, Director of Building and Zoning. OTHERS PRESENT: Doria Higgins, Hillcrest Drive; Barbara R. Smith, 821 North Aurora Street; Robin Palmer, 206 Oak Hill Road; Ken Ritter, 249 Coddington Road; Jim Blizzard, 34E Miller Road; Pastor Shirley Reeves, 116 South Plain Street; Marie Grady, 126 Sears Street; David Tyler, Village of Cayuga Heights Attorney; Thomas Doheny, Time Warner CALL TO ORDER: The meeting was called to order at 5:00 p.m. and Supervisor Valentino led the assemblage in the pledge of allegiance. Agenda Item No. 3 – Consider Ratification of Change in Public Hearing Time TB RESOLUTION 2002-167SpMtg – Ratifying the Change of the Public Hearing Time on the Proposed Cable Franchise Agreement WHEREAS, at the Town Board meeting held on October 3, 2002, the Town Board set a public hearing for 5:45 p.m., October 17, 2002, to consider the proposed Cable Franchise Agreement between the Town of Ithaca and Time Warner Cable; and WHEREAS, subsequent to the meeting it was discovered that a conflict existed requiring the Town Board to vacate the Town Board meeting room no later than 7:00 p.m. on the scheduled hearing date to make room for a previously scheduled public meeting; and WHEREAS, the Town Board wanted to provide as much time for comment on the Time Warner Cable Franchise Agreement as feasible; and WHEREAS, the Town Supervisor conducted an informal poll of members of the Town Board to solicit their consent to moving the public hearing up to 5:15 p.m.; and WHEREAS, the Supervisor then caused the notice of public hearing to be amended to show that the public hearing would occur at 5:15 p.m. rather than 5:45 p.m.; and WHEREAS, it would seem appropriate to ratify the actions of the Town Supervisor; 1 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 NOW, THEREFORE, be it RESOLVED, that this Board ratifies and confirms the action of the Town Supervisor in changing the time of the scheduled public hearing on the Cable franchise Agreement from 5:45 p.m. to 5:15 p.m.; and it is further RESOLVED, that the Town Board ratify the actions of the Town Supervisor in causing the public notice for said public hearing to be changed to show that the public hearing would occur at 5:15 p.m. MOVED: Councilman Lesser SECONDED: Councilwoman Grigorov VOTE: Supervisor Valentino, aye; Councilwoman Russell, aye; Councilwoman Grigorov, aye; Councilman Klein, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilman Niederkorn, aye. Motion carried unanimously. Agenda Item No. 8 – Discussion of the SPCA Contract Supervisor Valentino told the Board we’ve been talking with Town staff and some of the other Town Clerks around the County. There have been problems with the SPCA on how they ticket. They’ve been delinquent in ticketing and oftentimes issue tickets to individuals who have already renewed their license. There are also problems contacting various personnel at the SPCA. We are working with the Town Clerks to have a group meeting with Nathan Winograd, Director of the SPCA. Agenda Item No. 7 – Consider Approval for 2003 Funding and Authorization to Enter into Agreements with DeWitt Historical Society, Gadabout Transportation, Tompkins County Senior Citizens Council, Human Services Coalition, and the Joint Youth Commission Supervisor Valentino pointed out to the Board that when they look at the 2003 appropriations, there is actually $63,000.00 that the Town gets as revenue against these expenditures. The money comes down from the State and through the County back to the Town. The cost to the Town is not the whole $99,155.00. Councilman Lesser asked where the initial contract amounts came from and how they were decided upon? No one had a definite answer. Supervisor Valentino stated that representatives from each of the groups funded were being asked to come before the Board in 2003 to report on their activities and answer any questions from the Board. TB RESOLUTION NO. 2002–168 SpMtg - Approval for 2003 Funding and Authorization to Enter Into Agreements with DeWitt Historical Society, Gadabout Transportation, Tompkins County Senior Citizens Council, and Human Services Coalition. 2 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 RESOLVED, that the Town Supervisor be, and she hereby is, authorized to execute on behalf of the Town renewal contracts for the year 2003 with DeWitt Historical Society, Gadabout Transportation, Tompkins County Senior Citizens Council, Human Services Coalition, and the Joint Youth Programs all of which contracts are for services provided to or for the Town of Ithaca, such contracts to be at the amounts listed below, and on the same terms as in previous years with such changes therein as the Town Supervisor, with the advice of the Attorney for the Town may approve, her execution of same to be due evidence of such approval. DeWitt Historical Society $ 8,360.00 Gadabout $10,450.00 Human Services Coalition $ 4,000.00 Tompkins County Senior Citizens Council $ 8,400.00 Joint Youth Commission Programs: Summer Playground 0 Coddington Road Community Center $ 9,062.00 Cooperative Extension $28,836.00 Learning Web $52,841.00 Ithaca Invaders $ 1,500.00 Club Ithaca $ 2,036.00 At Risk Youth 0 Science Center $ 1,380.00 West Hill Pilot Youth $ 3,500.00 MOVED: Councilman Niederkorn SECONDED: Councilman Burbank VOTE: Supervisor Valentino, aye; Councilwoman Russell, aye; Councilwoman Grigorov, aye; Councilman Klein, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilman Niederkorn, aye. Motion carried unanimously. Burns Road Attorney Barney recommended the Board set another public hearing to consider the Burns Road Watermain Extension. The Board held a public hearing on the project a while back, but needed to hear from New York State Agriculture and Markets prior to authorizing the project. The Town has received approval from Agriculture and Markets, but the project’s construction cost has increased from $110,000.00 to $128,000.00. Another public hearing is needed to consider the increased project cost. RESOLUTION NO. 2002-169 SpMtg – ORDER FOR PUBLIC HEARING IN THE MATTER OF THE PROVIDING OF A PROPOSED WATER IMPROVEMENT TO BE KNOWN AS THE TOWN OF ITHACA 2002 BURNS ROAD WATER SYSTEM IMPROVEMENT PROJECT IN 3 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 THE TOWN OF ITHACA, TOMPKINS COUNTY, NEW YORK PURSUANT TO ARTICLE 12- C OF THE TOWN LAW. At a Special Meeting of the Town Board of the Town of Ithaca, Tompkins County, New York, held at 215 North Tioga Street, in Ithaca, New York, on the 17th day of October, 2002, at 5:00 o'clock P.M. Prevailing Time. PRESENT: Supervisor Catherine Valentino Councilperson Mary Russell Councilperson David Klein Councilperson Carolyn Grigorov Councilperson William Lesser Councilperson Thomas Niederkorn Councilperson Will Burbank ABSENT: None WHEREAS, a plan, report and map has been duly prepared in such manner and in such detail as heretofore has been determined by the Town Board of the Town of Ithaca, Tompkins County, New York, relating to the creation and construction, pursuant to Article 12- C of the Town Law of water system improvements to be known and identified as the Town of Ithaca 2002 Burns Road Water System Improvement, and hereinafter also referred to as "improvement", to provide such water improvement including extensions, to the present Town water improvement, such water system improvement to be constructed and owned by the Town of Ithaca, and WHEREAS, said plan, report and map have been prepared by Daniel Walker, P.E., the Town Engineer, a competent engineer duly licensed by the State of New York and were filed in the office of the Town Clerk where they were available for public inspection, and WHEREAS, the area of said Town determined to be benefitted by said Town of Ithaca 2002 Burns Road Water System Improvement consists of the entire area of said Town excepting therefrom the area contained within the Village of Cayuga Heights, and WHEREAS, the proposed Town of Ithaca 2002 Burns Road Water System Improvement consists of the water improvements set forth below, and in the areas of the Town as set forth below, and as more particularly shown and described in said map, plan and report presently on file in the Office of the Town Clerk: Construction and installation of approximately 1800 feet of 8" ductile iron pipe water main on Burns Road connected to the existing water main on Coddington Road together with related ancillary controls, service laterals, and other structures; and WHEREAS, the original maximum proposed to be expended by the Town of Ithaca for the aforesaid improvement was $110,000.00 and the proposed method of financing to be 4 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 employed by said Town of Ithaca consists of expenditure of current revenues and surplus funds from the Town of Ithaca Water System Benefitted Area; and WHEREAS, a public hearing was held on the plan and report as so submitted on August 12, 2002; and WHEREAS, since the holding of such public hearing the Town has received bids on other projects which bids suggest that the original estimate for the proposed project needed to be adjusted; and WHEREAS, the Town Engineer has prepared and filed a revised report for the Project which anticipates a maximum cost for the Project of $145,000; and WHEREAS, it is now desired to call a public hearing for the purpose of considering said plan, revised report and map and the providing of said Town of Ithaca 2002 Burns Road Water System Improvement, and to hear all persons interested in the subject thereof, all in accordance with the provisions of Section 209-q of the Town Law; NOW, THEREFORE, IT IS HEREBY ORDERED, by the Town Board of the Town of Ithaca, Tompkins County, New York, as follows: Section 1. A public hearing will be held at 215 North Tioga Street, in said Town, on th the 7 day of November, 2002, at 8:05 o'clock P.M., to consider the aforesaid plan, revised report and map and the question of providing of said Town of Ithaca 2002 Burns Road Water System Improvement and to hear all persons interested in the subject thereof and concerning the same and to take such action thereon as is required by law. Section 2. The Town Clerk of the Town of Ithaca, Tompkins County, New York, is hereby authorized and directed to cause a copy of this order to be published once in The Ithaca Journal, and also to post a copy thereof on the Town signboard maintained by the Clerk, not less than ten nor more than twenty days before the day designated for the hearing as aforesaid, all in accordance with the provisions of Section 209-q of the Town Law. Section 3. This order shall take effect immediately. The question of the adoption of the foregoing order was upon motion of Supervisor Valentino, seconded by Councilman Lesser, duly put to a vote on a roll call, which resulted as follows: Supervisor Valentino Voting Aye Councilperson Russell Voting Aye Councilperson Klein Voting Aye Councilperson Grigorov Voting Aye Councilperson Lesser Voting Aye 5 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Councilperson Neiderkorn Voting Aye Councilperson Burbank Voting Aye The order was thereupon declared duly adopted. Agenda Item No. 4 – Public Hearing – Cable Franchise Supervisor Valentino opened the public hearing at 5:15 p.m. and invited those present to address the Board. Doria Higgins, Town of Ithaca Comments as follows Before I get to what I wanted to say about the public meeting, I would like to say that I only heard about this at 3 o’clock or maybe it was 2:30 this after noon. Some of the people here are people I have called. One person knew about it because he had been at the last Town Meeting, therefore, I don’t know the specifics, the details about the agreement, but I would like to say a few words in general. Aren’t you supposed to put legal notices in the paper? Ms. Hunter stated that there had been a legal notice published in the paper. Ms. Hunter had copies of the proposed agreement for public review. I certainly urge you to vote in favor of having the Town meetings cable-cast as are the County Board meetings and the City meetings. I think it is very informative for the community to be able to see what’s going on. And thank you for giving at least 1%, which is sort of a pittance… Supervisor Valentino – It’s ½%. Ms. Higgins – I wish you could give more. I think very few people realize how really important the service that Peg-A-Sys performs for the community. I think it’s a wonderful place. I’ve been involved in it, not recently, but a year or two ago. It’s a real asset for the community. It was wonderful for high school kids. They would come and learn how. They would put on their own programs. And it’s being destroyed by Time Warner and I guess by the City reaching some kind of agreement where they are not going to have enough money. They’re going to have to cut staff, I understand, and they’re going to have to cut hours and that is unfortunate. I also chastise the Journal for no longer printing a program telling kpeople what was on. I think what Time Warner is probably going to do is give their CEOs another million dollars in salary and something like that is probably happening. Anyway, as much as you can, please support Peg-A-Sys, give more if you can. I know you other responsibilities, but this is a much more important asset for the community than a lot of you realize. It’s the way we get Democracy Now, we get all sorts of information you would not get otherwise. Thank you. 6 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Doolie Kiefer, Tompkins County Board of Representatives Comments follow I haven’t read it yet. I came just because I thought it might or might not deal with the guestion of cable-casting of your meetings. Supervisor Valentino – No, it doesn’t Ms. Kiefer – Does it deal with public access? Supervisor Valentino – Public access is in here, yes. Ms. Kiefer – I came to speak about the value of public access. As a member of the League of Women Voters we believe in informed citizen participation in government and one way that citizens can participate is to have their own shows and share different points of view. From a County Board Member perspective, it never ceases to amaze me the people who actually watch our meetings being broadcast. And so let me just mention that as a sidebar here. I went to get furnace service and the person who was setting up the appointment asked me if my name was “Kiefer”. She knew the sound of my voice from the cable-cast meetings of our Board, someone I don’t know. If and when you decide to consider that, I urge you to do it. I think it’s a really good thing, public access is terribly important. Virginia Cobb Comments follow Ms. Cobb - Who has provided the funding up to now? Supervisor Valentino – The City. Tom Doheny – City subscribers. And they can’t anymore? Is it part of the downing of the government? Supervisor Valentino – I can’t answer that for the City. That’s the City’s franchise, we have no direct knowledge of they’re negotiating there. Ms. Cobb – Has anyone else offered funding to continue this? Supervisor Valentino – The Town of Ithaca and possibly Cayuga Heights. The rest of the municipalities have opted out, as far as I know. Ms. Cobb – None of the colleges? Supervisor Valentino – I really can’t address that, Ma’am, we can only address our own franchise agreement. 7 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Ms. Cobb – I think there are many people who listen to that. We don’t have any idea of…and whether they would have come in if they’d known it. I don’t know what could have been done anyway about it, but I thinks it’s too bad that the City looses this way of conveying… Supervisor Valentino – I don’t think that’s going to happen. Ms. Cobb – It’s not? It’s still going to continue? Supervisor Valentino – Yes, it’s still going to be there. There’s no indication. I can’t speak for the City, but from what I know of the negotiations and the part of our commitment to help fund Peg-A-Sys is that yes it’s not a question that’s it to cease. You will have it. Ms. Cobb – That’s good to know. Supervisor Valentino – I think we pretty much agree with you on that. Barbara Smith, 821 North Aurora Street Comments follow I just wondered how much 1% from the Town, I’m not in the Town so I don’t even know if I belong here, but I’m a supporter of public access, but I don’t know how much money this ½% is going to contribute and I wondered if anyone had that number? Supervisor Valentino – About $13,000.000 didn’t we say, Tom? Councilman Lesser asked if someone could explain to the audience the funding for Peg-A- Sys. Supervisor Valentino – The Town of Ithaca has agreed to help the funding of Peg-A-Sys for the first time ever at a rate of ½%, which is going to this year equate to around $13,000.00. Over and above that we will be funding for equipment at $.15 on each subscriber’s bill to help set up money we can maintain the equipment and get new equipment to make sure that the public access functions. Now these numbers have been arrived at through some negotiations with the City that we’ve bought into and maybe Tom Doheny can speak to that a little more, feeling that those numbers are adequate for keepings Peg-A-Sys up and running adequately. This is the first time ever that the Town of Ithaca has made a commitment, but we agree with what I’ve been hearing from some folks that it’s a very important part of our community and we want to chip in to help make sure that it continues. That’s where we are with that. Councilman Klein – That’s $.15 a month on a subscriber bill? That’s like what, $9,000.00 a year or something like that? Tom Doheny – That’s probably pretty close (inaudible) 8 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Supervisor Valentino – The ½% is an increase in our franchise tax. We’re going to increase our franchise tax from 2% to 3%, and ½ of that percent will go to fund Peg-A-Sys. Robin Palmer, Cayuga Heights Comments follow I live in Cayuga Heights, I’m answering a call from my friend Doria Higgins who said that public access was in danger and it needed voices from the public to see that the danger did not befall Peg-A-Sys. I’d like to take this opportunity to congratulate the Town Board on the way you handled the Iraq situation as compared to the way the City handled it and the way the Tompkins County Board handled it. Now that’s not totally nongermain to Peg-A-Sys because I would not have known for instance how the City behaved in regard to the Iraq situation and their nine to nothing vote had it not been for public access. I didn’t even know that they were going to take a vote on Iraq… Supervisor Valentino – I just as soon you keep to the Peg-A-Sys. Mr. Parker – I’m just giving it a boost and saying that it’s extremely important for a number of reasons and I certainly hope it continues. Ritva (indecipherable last name), 120 Sears Street I make videos. I live in Ithaca. I make videos and I have been making them since 1995. I enjoy it enormously, personally. I live in the City of Ithaca but many in my crew are from all over. My question is, I haven’t had a chance to read the document, is what about Peg-A-Sys has had these training courses, people are trained to be producers and use the studio equipment and cameras. Some of them live in Hector, for instance. I heard a rumor that they won’t be allowed to make programs. Is that true? Supervisor Valentino – I don’t think that’s true. Again, that’s outside of the jurisdiction of the Town of Ithaca so I can’t really address that. Ritva – I just hope that Peg-A-Sys continues. Ken Ritter, 249 Coddington Road I’m not clear about the certain pass-along fees and whether that’s included in this, and what that means. Can somebody enlighten me? I heard there was a maximum of 5%. Attorney Barney – The maximum that can be charged on a franchise fee is 5% by any municipality. Mr. Ritter – So the Town is not instituting any pass-along fees to the residents. Attorney Barney – No. 3%. The Town is charging 3%. 9 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Mr. Ritter – That will appear on people’s bills as a 3% charge? Attorney Barney – Correct. Mr. Ritter – I would like to say, if you could consider for more funding that wouldn’t cost the Town anything to increase the pass-along fee to a maximum of 5%. Also I did mention something that since they don’t have listings in the newspaper it seems to me that there should be something in this agreement, which compels them to do that. The Ithaca Journal does not carry the listings. This is a business decision that has been explained to me by the Journal. However, if the Journal didn’t carry ABC I think that would be upsetting to Time Warner. So I don’t know how you can craft it, but if you can it just seems to me that when a person looks at what’s on television tonight, they open up the paper and they look down, and they don’t see Peg-A-Sys so there’s a blank spot. It just seems to me that either an ad could be requested in this agreement or some form of negotiations with the Journal or the Times or the Cornell Sun. Somehow to get their listings other than just the television station is important. I also think it would be nice if you had your own meetings broadcast to the public. John Finnegan, Cayuga Heights I’ve been bringing tapes to Peg-A-Sys probably for the last 5 years. My religious teaching is (inaudible) we bring those tapes in, they play them once a week. Over those 5 years or so I’ve found them to be very competent and very responsible. I just came down here really to just give my support to them because of the experience I’ve had dealing with them. Thank you. Jim Blizzard, Town of Danby I’m in the Town of Danby. I do government access television work for the County and I’m also a public access producer and have been for a dozen years or so. I’m wondering, I heard some of the franchising bodies have split apart, no longer working as an intermunicipal cable commission and I wondered if your intention is to continue to carry the Peg-A-Sys channels to all parts of the County or only to people in the municipalities that are helping pay for the system. Supervisor Valentino – That’s not a decision that is part of our franchise nor do we have authority. Mr. Blizzard – You couldn’t mandate that? Supervisor Valentino – No. Mr. Blizzard – I wondered also about a hardwired connection. If specifically TCCC wanted to become a cable originator, a place where somebody could go live on TV, and the cable would have to pass through the Town of Ithaca. I’m wondering if there is any reason why if you don’t have an intermunicipal agreement that includes Dryden, would this preclude them somehow being connected. 10 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Attorney Barney – Not entirely. The arrangements would be between TCCC and Time Warner and to the extent that this franchise give Time Warner the ability to run cable line through our roads to the extent that they need to do it so… Jim Blizzard – Including institutional network type of…? Do you see anything that would prohibit that? Mr. Doheny – No. Mr. Blizzard – Since Tompkins County doesn’t have a franchise agreement, you maybe don’t know anything about this either, I wondered how their standing was being effected by these new franchise agreements. My concern is that the County meetings still be cable-cast. Supervisor Valentino – That’s not our issue. It’s not anything we can deal with. Tom Doheny – Jim, technically the County is a producer just like Doria’s a producer and they have the right to submit programming to Peg-A-Sys for a TV show just like anybody. Barbara Smith, North Aurora Street I just wanted to show the list of producers so that you might consider in the future funding more because this is the number of people who mav be wanted to use it and may not be using it because the facilities are inadequate. I could go on, but that’s it. Doria Higgins, Hillcrest Drive One of the things I heard from someone I spoke to in trying to do some last minute research may not be fair, but I’d like to bring it to your attention. I was told that because you had reached, the Town had reached, an agreement with Time Warner instead of negotiating with the City and doing a mutual agreement that you weakened the power of those who are negotiating with Time Warner. Now you have made an agreement, but if you’d sort of stood by, this is what I heard now, I just present it to you. In the past Time Warner has capitulated in a way, because the City has just stood so firm and it’s not doing it now because Alan Cohen is not in favor of so much. But it is a kind of, it’s a negotiating process and I think this year everyone’s, the City and the Town, have put themselves at a disadvantage by not negotiating together. It may not have been your fault, may have been Alan Cohen’s fault. Supervisor Valentino – We’ve never negotiated together in the past. That’s never happened. We did all make a good faith effort, most of the municipalities in the County, I think there were two that didn’t joint in a consortium, where we tried to work together and negotiate together. I just don’t want to go into the details, but there were various reasons why that didn’t come together. I don’t think it’s any one municipalities fault, I don’t think it’s the City’s fault, I don’t think it’s the County’s fault, or the Town’s fault. I think it was just one of those things where the time for negotiations ran out. We thought we had an agreement two or three and it just didn’t work out that way. But I have done a lot of negotiating in my time. I don’t think that it 11 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 really weakened anyone’s particular ability because I think we did support each other through it. I think that’s not correct information from my perspective. Ms. Higgins – The fact is though that, again just from what I’ve heard on the telephone, Time Warner is restricting many services and benefits that the City and the community had before which we will not longer have. And if that is so I think it is regrettable. Staff is being cut, the hours on the cable will be cut, and that’s too bad. Thank you. There was no one else to address the Board and Supervisor Valentino closed the public hearing at 5:40 p.m. Councilman Burbank asked Mr. Doheny to verify that people who live outside the participating municipalities will be allowed to use the facilities by paying a fee. Mr. Doheny stated that the concept was being discussed, but nothing has yet been signed. He further stated that once the participating municipalities have signed agreements, a committee will be formed and that committee will determine the rules and procedures. Mr. Doheny assured those present that he did not expect there would be diminishing services. He stated that “quite honestly” the requirements that were required by the City franchise over the last 10-12 years provided what we would think was an excessive amount of service for the use. Councilman Burbank pointed to audience comments regarding cable-casting the Town’s meetings. He asked if this could, at some time, be added to the agreement. Supervisor Valentino stated it was something that did not have to be part of the franchise agreement. Councilman Lesser questioned, on page 4 under B, the phrase “any service other than cable service”. He asked what might fall in that category. Mr. Doheny stated Roadrunner is one of them, what they call high speed on-line. Mr. Doheny stated that Roadrunner has been classified by the FCC as an information service outside of the parameters requiring a franchise. In the past Roadrunner was considered a cable service. The federal government changed that in March of 2002 to be classified as an information service. That resulted in Time Warner ceasing to charge subscribers franchise fees on that service. Something similar might happened, for example, some sort of telephony and Time Warner might do cable telephony and the FCC will determine if a separate franchise is needed, or it’s included, or it’s a different type of service. Councilman Lesser questioned, on page 10, reference to tree trimming. He stated he read that paragraph to mean that, in Time Warner’s sole discretion they could cut / trim trees; he found that a pretty broad grant of rights. Mr. Doheny responded stating the only reason Time Warner would need that passage was in an emergency. If tree limbs are hanging on their lines, NYSEG does not cut them, Time Warner has to cut them. Councilman Lesser stated that was fine, but that is not what it says, to which Mr. Doheny replied “but that’s what it’s for”. Attorney Barney stated it does not give Time Warner the right to go on private property. The Town only has the right to give them the ability to cut trees on the Town’s rights-of-way. If they come through with a massive cutting episode and there’s no lines there, Mr. Barney stated the Town would have grounds to suggest that what they were doing was unreasonable. Councilman Lesser stated he was just suggesting there might be broader 12 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 middle ground. Supervisor Valentino stated the language in the agreement also has to pass the Public Service Commission and they have been working with the Town on most of the language. Councilman Lesser asked if it was reasonable, at minimum, to put in that except in emergency situations Time Warner shall contact the affected property owners or tree owners. Mr. Doheny asked that Councilman Lesser look at Times Warner’s record of 50 years of service stating they don’t cut trees, the only time they do it is when they absolutely have to. Councilman Lesser asked why then they would object to putting those words in the agreement? Councilman Lesser questioned, on page 12, it refers to rate changes and says “needs to be approved by the municipality to the extent consistent with applicable State and Federal law”. Councilman Lesser asked if there were any State and Federal laws that give the Town any authority. Mr. Doheny stated the municipality has the right to regulate basic cable rates on a local level or to allow the FCC to handle it, and in the State of New York the New York Public Service Commission has offered to do it for you also. Mr. Doheny believed the Town was allowed to take that election any time they like. Mr. Doheny believes what the Town did when this election became available was pass or did not comment, which meant the FCC regulates the rates. Councilman Niederkorn questioned, section 18 page 15, where it says “Time Warner shall pay the municipality an amount equal to 3% of gross revenues”? He asked if there was any clue as to what that might meant in terms of actual money. Mr. Doheny stated he thought around $50,000.00 / $52,000.00. Attorney Barney stated 6 times $13,000.00. Councilman Klein questioned, on page 16 paragraph D, the phrase “in the event Time Warner Cable fails to pay any franchise fee on or before its due date there shall be added to the franchise fee a late payment charge equal to 1 ½%”. Councilman Klein asked if that was just a flat 1 ½% or is it 1 ½% every 30-days? Attorney Barney stated it was a 1 ½% one time late charge. Councilman Klein then asked what late charge Time Warner applies to its subscribers. Mr. Doheny stated their late charge was $5.00 adding a customer was not late until they hadn’t paid for 2 months. Time Warner bills in advance so they do not charge a late fee on the first 30 days. Subscribers get a second bill at 45 days that includes a late charge. Councilman Klein commented on the discrepancy between the 1 ½% late fee charged Time Warner and the 10% late fee Time Warner charges its customers. Supervisor Valentino stated that the Town was not getting anything before, the 1 ½% was negotiated in. Councilman Klein questioned Time Warner’s ability to set the late fee charged subscribers, stating they could charge double. Mr. Doheny stated Time Warner was governed by the Public Service Commission and they periodically review late fees charged by companies and determine whether they are fair and reasonable. There are a number of administrative costs that get tied into bills being late and that’s all added into the justification that the State can ask Time Warner to produce. Councilman Klein asked if the Public Service Commission had approved their late fees. Mr. Doheny stated they know what their late fee is , but have never asked Time Warner to justify it. Their own cost estimates set $6.00 as the cost to Time Warner. Attorney Barney stated the Town also gets 9% per annum, that’s another ¾% per month, if they fail to pay on a timely basis then it accrues interest at the statutory rate. Mr. Barney stated he had a problem with the way it is articulated in the agreement because there 13 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 was a sentence taken out that left it kind of hanging, but the intention is for the 9% to be there at all times. Councilman Burbank questioned, on page 3, the agreement talks about gross revenues. Councilman Burbank stated he understood the rationale for excluding things like Roadrunner but it was not clear to him why they would exclude things such as ad revenue or pay per view. He wondered if it was ever a subject of negotiation. Attorney Barney stated Time Warner was willing to let the Town take a franchise fee on the ad revenues and on other revenues. The problem with ad revenue is, where is it generated? Is it basically an advertiser that comes from the Town of Ithaca that pays that and an advertiser somewhere else doesn’t pay it. It seemed to put our advertisers at a slightly different competitive arrangement. Probably the more important reason, we built it in here for the first time, is an audit right. It basically says that we can go and look at their records and determine whether they’ve paid or not. If they haven’t paid within a level of 5% we can chase after them for it. The problem with having the ad revenues is that they are very difficult to audit. The number of subscribers paying the regular recurring monthly charges is a very easy audit. It was to try and simplify what the gross revenues were. Councilman Burbank asked about pay per view. Mr. Doheny was under the impression that pay per view was included in the gross revenues. Councilman Burbank questioned, on page 4, the phrase “upon request by Time Warner Cable and at Time Warner’s sole expense the municipality hereby agrees to assist Time Warner Cable in gaining access to and using such easements”. Mr. Burbank asked what that meant in practical terms. Attorney Barney stated, for example, if a developer conveys a road to the Town it typically will carry an easement to one of the power companies. What this is saying is, if the Town has an easement in our road for an existing company and Time Warner would like to run another line in the same place, we will assist them to the extent we are able to as long as they reimburse us for any costs. Councilman Burbank stated his concern relates to the definition of “street”, which is a very broad definition and includes park space, trails, virtually anything. Mr. Burbank asked if we were opening up a window giving Time Warner the right to put their cable anywhere on Town property? Attorney Barney stated that he would need to go back and look; it was a good point. Mr. Barney did not read it that way and there are certain limitations outside of the franchise in what we can do, for example, on park-lands. Mr. Barney stated the definition was drawn fairly broadly, although they had tailored it down a little bit because of the concerns of the Dryden lawsuit and what rights the Town has in the rights-of-way to give to somebody else. Mr. Burbank stated he was concerned about the broadness of the definition. Councilman Burbank questioned, on page 9 section 9, the phrase “the expenses of such temporary removal, raising, or lowering of wires around the property shall be paid in advance to Time Warner Cable by the person requesting the same”. Councilman Burbank stated that there was no definition as to what the costs were. It would be reasonable to presume that they would pay the actual costs of that, but there have been cases where utilities have been rather extreme in their charges. Mr. Burbank asked if there was some way to build in some protection so these will be reasonable charges. Attorney Barney stated it might not be a bad idea and asked Mr. Doheny is there would be any objection to including the word “reasonable”. Mr. Doheny stated he did not have an objection. 14 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Councilman Burbank reinforced Councilman Lesser’s concern regarding the tree trimming. Councilman Burbank asked the meaning, on page 19 section 23, of “further assurances”. Attorney Barney stated basically it is saying if the Town has forgotten to put something in the agreement that we really intended and if it requires a written document to do it, we will do it. A common example, if you ever go to get a mortgage these day, you get a compliance agreement which says that even though the bank has supplied you with a stack of documents and you have signed them, if there is a mistake somewhere you agree to come back and correct the mistake. What the Town is saying is that the concept is to give a franchise and to be paid for that privilege. If there is something that needs to be done to implement that agreement which this document doesn’t do, both Time Warner and the Town agree to do whatever is reasonably necessary. Supervisor Valentino reviewed the requested modifications: - Page 9 – add the word “reasonable”. Mr. Doheny did not anticipate a problem adding that. - Page 10 – Attorney Barney suggested changing “to the extent that it (meaning Time Warner) reasonably deems necessary” to “to the extent that it is reasonably necessary” which basically moves the standard to an independent arbiter if it ever came to an issue. Mr. Barney asked for some advance notice to both the municipality and the property owner except in the case of an emergency. Mr. Doheny felt this posed problems. Councilman Klein asked Mr. Doheny to respond to the resident’s email asking for UPN. Mr. Doheny stated that Time Warner doesn’t have access to a UPN over the air. The only way to get one is through satellite delivery from a “distant market”. Distant stations are subject to copyright rules, which are a fund to help the independent networks around the county stay alive because when you take a distant network into another network you are stealing advertsining money from the people who live there. That’s the government’s rationale behind this fund. It’s very expensive and Time Warner made a decision not to incur that expense. In our community, to pull in a distant UPN, would have cost between $1.25 and $1.50 per subscriber. Part of the decision was based on the fact there is a low power UPN network in both Binghamton and Syracuse and if they either increase their power a little bit or we find a way to deliver the signal through hardline Time Warner would be forced to carry them. The reason why Time Warner made the decision they made was partly because of the cost and also because they knew that the Syracuse network was working on getting delivery of their signal to our market through microwave technology and once they did Time Warner would have to carry them under “must carry rules”. Time Warner decided to just wait and see how things play out. Councilman Burbank brought up the issue of the definition of streets. Mr. Barney stated there had been a prior consent requirement, which appears to have come out. Mr. Barney thought they had agreed it was going to stay in. Attorney Barney stated the agreement, as worded, gives Time Warner the right to “construct, repair, replace, maintain blah, blah, blah all that 15 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 broad language that your lawyer came up with in, on, over, under, upon, and across any and all said Streets”. Streets is capitalized so it is, therefore, streets as defined earlier in the agreement. Attorney Barney felt we should think about that a bit and narrow it down to be what we really do understand it to be, which is roadways. Supervisor Valentino stated that there will be an executive session to receive legal advice regarding the cable franchise. Agenda Item No. 5 – Discussion of the 2003 Budget (Attachment # 1 – Analysis of Capital Project Funding, Summary of Changes, Comparison of Annual Principal and Interest Payments) rd Supervisor Valentino reported that she had gone over the Board’s October 3 questions regarding the budget with Mr. Carvill and Councilwoman Russell. Supervisor Valentino distributed copies of her recommendations and reviewed them with the Board. Supervisor Valentino stated that some of the concerns Board members raised about the fund balances were legitimate. She felt it made sense for the Board to go back and change the borrowing for the Public Works Facility to $1,4000,000.00 instead of the original $800,000.00. A bond would be issued and held locally at a very favorable interest rate and the borrowing will give us flexibility in next year’s budget. It will gives us a margin of comfort and ensure that we can cover the costs of the Public Works Facility. If things work out well next year, it means we can put that money back on the principal and reduce the debt. Supervisor Valentino reviewed with the Board the “Analysis of Transactions Since January 1, 2002 Impacting Fund Balance” worksheets. She stated that she was comfortable with a small fund balance in the Part Town Fund because it is a fund with very little pressure on it and we can always transfer money to it from the General Fund. Tthe Highway budget was one that she is more concerned about. The last page in the worksheets shows the fund balance at 30% and 20% of appropriations. Supervisor Valentino stated she had spoken to staff regarding money that will not be spent and will be returned to fund balance at the end of the year. They anticipate at least $141,000.00 returned to fund balance. Having gone through the analysis she, Councilman Russell, and Mr. Carvill are feeling comfortable that the fund balances are “pretty close”. She would like to see the Highway come up some. Supervisor Valentino stated they felt the Town of Ithaca is still in very strong financial shape. We have adequate fund balances to take care of emergencies. We should be able to pay the borrowing back without any real problem, and with the borrowing the Town will be able to maintain the same tax rate. Councilman Klein corrected the date on the sheets detailing impacts on fund balances. The last dates on pages 2, 3, and 4 should be changed from 01/01/2002 to 01/01/2003. Councilman Lesser asked what exactly the “floor” represents. Supervisor Valentino stated it represents 20%. Basically we’re saying that we want to try to maintain a floor of 20% of fund balances as a combination of the three funds: Townwide, Part Town, and Highway. These 16 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 are the only three funds that are affected by sales tax and, in some ways, property tax because you use the property tax for the General Fund, which means you have more sales tax money for your other funds. Because we have the ability to move money from the General Fund to the other two funds it really makes more sense to keep as much as possible in the General Fund because it gives you flexibility to put it where you need it. Councilman Lesser asked whether, if the Town goes to the higher borrowing level, our total repayment commitment is $110,000.00 per year? Just to clarify, he asked for assurance that the Town would have no problem coming up with the cash. Supervisor stated that the Town would have the cash. In response to questions from Councilman Klein, Supervisor Valentino indicated that if we sold the old town hall the $300,000.00 could be used to reduce the principal, there would not be a pre-payment penalty. Supervisor Valentino stated that what is in front of the Board is a worst-case scenario saying that greater sales tax revenues and mortgage tax revenues are likely. Supervisor Valentino asked if the Board felt comfortable in authorizing the additional borrowing. Attorney Barney pointed out that the proposed resolution authorized $1,600,000.00 in borrowing. He stated he did not think there was any intention of borrowing more than $1,400,000.00. The reason for the additional $200,000.00 is to avoid the Board’s having to come back and authorize more. The $200,000.00 would be a little cushion. In response to questions from Councilman Klein, Attorney Barney stated the reason for the cushion was protection from any problem with one of the other funds from which we were planning to borrow money. If construction costs change it would have to come back before the Board. Mr. Carvill stated that the monies from other funds had already been provided, $225,000,00 from the Sewer Fund and $220,000.00 from the Water Fund. The Board saw no need to go over the $1,400,000.00. RESOLUTION NO. 2002-170 SpMtg - AUTHORIZING AN INCREASE IN THE AMOUNT OF BONDS TO BE ISSUED IN CONNECTION WITH THE PUBLIC WORKS FACILITY TO $1,400,000 AND REAFFIRMING THE AUTHORIZATION TO ISSUE BOND ANTICIPATION NOTES WHEREAS, the Town Board of the Town of Ithaca on April 8, 2002, authorized, subject to a permissive referendum, the expenditure of up to $1,800,000 for the renovation and expansion of the Town Public Works facility at 106 Seven Mile Drive, Ithaca, New York; and WHEREAS, no referendum was requested, and accordingly the Town authorized the architect and the Director of Engineering to solicit bids for the project; and WHEREAS, the Town Board received bids for the work, and the costs of the bids, together with other amounts related to the work, exceeded $1,800,000, even after a deduction was made by deleting the proposed wash bay; and 17 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 WHEREAS, as a result on July 29, 2002, the Town Board authorized an increase in the maximum cost of the project to $2,026,832 and authorized the expenditure of such amount subject to a permissive referendum; and WHEREAS, no referendum on such increase was requested; and WHEREAS, at the time of such increase, certain revenues from the sale of the old Town Hall and other sources were anticipated to be received in time to fund part of the cost of the project; and WHEREAS, it now appears that such revenues will not be received in a timely manner and it is therefore necessary to increase the amount of borrowing for the construction of the project from the $800,000 previously authorized to $1,400,000; and WHEREAS, the renovation, remodeling and expansion of the building has been determined to be a “Type I Action" pursuant to the laws and regulations of the Town of Ithaca adopted pursuant to the State Environmental Quality Review Act and the regulations of the New York State Department of Environmental Conservation promulgated thereunder (6 NYCRR 617 et. seq. hereinafter collectively “SEQR”), the implementation of which as proposed, the Town Board has determined, will not result in any significant environmental effects; and WHEREAS, the increase in the financing being authorized by this resolution is not an “action” as defined by 6 NYCRR 617.2(b) and thus no further determinations under SEQR are required; NOW, THEREFORE, BE IT RESOLVED by the Town Board of the Town of Ithaca as follows: Section 1. The Town of Ithaca hereby amends in the manner set forth below the prior resolutions adopted in connection with the previously authorized renovation of the Town Public Works Facility at 106 Seven Mile Drive, Ithaca, New York; the previously authorized expansion of such facility by the construction of approximately 16,000 additional square feet to include new offices, breakroom, conference room, maintenance bay, wash bay, and storage space; the previously authorized equipping of such additional spaces; and the previously authorized related site work; all of said actions (collectively the “Project”) having being authorized pursuant to Section 220 of the Town Law. Section 2. $2,026,832.00 is estimated as the maximum cost for Project. Section 3. The Town of Ithaca, subject to the approval of the voters of the Town of Ithaca if a referendum is requested, hereby amends the plan for the financing of the Project so that the plan consists of 18 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 (a) As previously authorized, the expenditure of all of the funds in the "Capital Reserve Fund Town Highway Garage and Administration Building" established by Town Board Resolution Number 169 adopted November 9, 2000 with a balance of approximately $182,000 as of the date of this resolution, towards the costs of the Project; and (b) Issuance of General Obligation Serial Bonds of the Town pursuant to the Local Finance Law in an increased principal sum of not more than $1,400,000 for a portion of the remaining costs of the Project; and (c) Payment from budgeted revenues and from surplus funds of the Town of the balance of the remaining costs of such renovation, expansion, construction and equipping costs. Section 4. The Town Board reaffirms the findings, determinations, commitments, obligations, authorizations, and delegations set forth in the prior resolutions dated April 8, 2002, and July 29, 2002, related to the Project originally authorizing the expenditure of funds for such renovation, expansion and related activities and subsequently authorizing an increase in the maximum cost of the Project. Section 5. The Town Board, subject to the results of a permissive referendum should one be properly requested, hereby expressly authorizes the issuance, pursuant to the Local Finance Law, of serial bonds in the principal amount of not more than $1,400,000 for the purpose of paying for part of the costs of the Project. Section 6. It is hereby re-affirmed that the period of probable usefulness of the aforesaid specific objects or purposes is 15 years, pursuant to Subdivision 12 (a)(2) of Paragraph a of Section 11.00 of the Local Finance Law. It is further determined that the maximum maturity of the serial bonds herein authorized will exceed five years. Section 7. There has been provided, or there will be provided prior to the issuance of such bonds or the bond anticipation notes hereafter authorized, the appropriate amount of current funds as required by Local Finance Law Section 107. Section 8. The full faith and credit of said Town of Ithaca, Tompkins County, New York, are hereby irrevocably pledged to the payment of the principal of and interest on said bonds as the same respectively become due and payable. An annual appropriation shall be made in each year sufficient to pay the principal of and interest on such bonds becoming due and payable in such year. There shall annually be levied on all the taxable real property in said Town a tax sufficient to pay the principal of and interest on such bonds as the same become due and payable. Section 9. Such bonds shall be in fully registered form and shall be signed in the name of the Town of Ithaca, New York, by the manual or facsimile signature of its 19 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Supervisor, and a facsimile of its corporate seal shall be imprinted thereon and attested by the manual or facsimile signature of its Town Clerk. Section 10. The powers and duties of advertising such bonds for sale, conducting the sale and awarding the bonds, are hereby delegated to the Town Supervisor, who shall advertise such bonds for sale, conduct the sale, and award the bonds in such manner as he or she shall deem best for the interests of said Town, provided, however, that in the exercise of these delegated powers, he or she shall comply fully with the provisions of the Local Finance Law and any order or rule of the State Comptroller applicable to the sale of municipal bonds. The receipt of the Supervisor shall be a full acquittance to the purchaser of such bonds, who shall not be obliged to see to the application of the purchase money. Section 11. Subject to the provisions of the Local Finance Law, the power to authorize the issuance and to sell bond anticipation notes in anticipation of the issuance and sale of the serial bonds herein authorized, including renewals of such notes, is hereby delegated to the Supervisor, the Chief Fiscal Officer. Such notes shall be of such terms, form and contents, and shall be sold in such manner as may be prescribed by said Supervisor, consistent with the provisions of the Local Finance Law. Section 12. All other matters, except as provided herein relating to such bonds, including determining whether to issue such serial bonds having substantially level or declining debt service and all matters related thereto, prescribing whether manual or facsimile signatures shall appear on said bonds, prescribing the method for the recording of ownership of said bonds, appointing the fiscal agent or agents for said bonds, providing for the printing and delivery of said bonds (and if said bonds are to be executed in the name of the Town by the facsimile signature of the Supervisor, providing for the manual countersignature of a fiscal agent or of a designated official of the Town), the date, denominations, maturities and interest payment dates, place or places of payment, and also including the consolidation with other issues, shall be determined by the Supervisor. It is hereby determined that it is to the financial advantage of the Town of Ithaca not to impose and collect from registered owners of such serial bonds any charges for mailing, shipping and insuring bonds transferred or exchanged by the fiscal agent, and accordingly, pursuant to paragraph c of Section 70.00 of the Local Finance Law, no such charges shall be so collected by the fiscal agent. Such bonds shall contain substantially the recital of validity clause provided for in Section 52.00 of the Local Finance Law and shall otherwise be in such form and contain such recitals in addition to those required by Section 52.00 of the Local Finance Law, as the Town Supervisor shall determine. Section 13. This resolution shall constitute a statement of official intent for purposes of Treasury Regulations Section 1.150-1. Other than as specified in this resolution, no moneys are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside with respect to the permanent funding of the object or purpose described herein. 20 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Section 14. The validity of such bonds may be contested only if: 1. Such bonds are authorized for an object or purchase for which said Town is not authorized to expend money, or 2. The provisions of law which should be complied with at the date of publication of this resolution are not substantially complied with, and an action, suit or proceeding contesting such validity is commenced within 20 days after the date of publication, or 3. Such bonds are authorized in violation of the provision of the Constitution. Section 15. Within 10 days after the adoption of this resolution by the Town Board, the Town Clerk shall, as set forth in Section 90 of the Town Law, post and publish a notice which shall set forth the date of the adoption of this resolution and contain an abstract of this resolution, concisely stating the purpose and effect thereof. Such notice shall specify that such resolution was adopted subject to a permissive referendum. Section 16. If no referendum is requested, or if requested, a referendum is held and the referendum approves the resolution, this resolution, or a summary thereof, shall be published by the Town Clerk of the Town of Ithaca, together with a notice in substantially the form prescribed, and containing the information required, by Section 81.00 of said Local Finance Law, such publication to be in the Ithaca Journal, a newspaper published in the City of Ithaca and having a general circulation within such Town. Section 17. This resolution shall take effect immediately, unless a referendum is requested, in which event it shall take effect, if approved at such referendum, upon such approval. Section 18. This resolution is adopted subject to a permissive referendum pursuant to Local Finance Law Section 35. The question of adoption of the foregoing resolution was duly put to a vote on a roll call, which resulted as follows: Supervisor Valentino Voting Aye Councilman Klein Voting Aye Councilwoman Grigorov Voting Aye Councilwoman Russell Voting Aye Councilman Lesser Voting Aye Councilman Neiderkorn Voting Aye 21 Special Town Board Meeting October 17, 2002 Approved November 7, 2002 Councilman Burbank Voting Aye The resolution was thereupon duly adopted. Executive Session On motion by Supervisor Valentino, seconded by Councilwoman Russell, the Board went into Executive Session at 6:50 p.m. to receive legal advice on the cable franchise agreement. On motion by Councilwoman Councilman Niederkorn, seconded by Councilwoman Russell, the Board resumed regular session at 7:30 p.m. RESOLUTION NO. 2002-171 SpMtg – SET PUBLIC HEARING FOR CABLE FRANCHISE AGREEMENT RESOLVED that the Town Board of the Town of Ithaca will hold a public hearing at their regular meeting on November 7, 2002 at 8:20 p.m. for the purposes for reviewing the proposed Cable Franchise Agreement with Time Warner. MOVED: Supervisor Valentino SECONDED: Councilwoman Russell VOTE: Supervisor Valentino, aye; Councilwoman Russell, aye; Councilwoman Grigorov, aye; Councilman Klein, aye; Councilman Lesser, aye; Councilman Burbank, aye; Councilman Niederkorn, aye. Motion unanimously carried. ADJOURNMENT On motion by Councilwoman Grigorov the meeting was adjourned at 7:35 p.m. Respectfully submitted, Tee-Ann Hunter Town Clerk , NEXT REGULAR MEETING NOVEMBER 72002 AT 5:30 P.M. 22