HomeMy WebLinkAboutMN-SJC-2010-11-10 SJC MEETING
November 10, 2010
SJC Members Staff
Wade Wykstra, Chair
Supervisor Herb Engman
Mayor Carolyn Peterson
Supervisor MaryAnn Sumner
Joel Zumoff
Pat Leary
Rich DePaolo
Ellen McCollister
Eric Whitney
Bill Gray
Scott Gibson
Dan Ramer
Steve Thayer
Absent
Guests
Joe Solomon, Dryden Representative
Wade called the meeting to order at 12:35PM.
Introductions were made around the table to Joe Solomon of the Town of Dryden, who will fill
in for MaryAnn when needed.
MaryAnn moved to accept the October minutes. Seconded by Joel, the motion carried 7-0 with
Rich abstaining, and one correction noted by Carol yn regarding the solicitation of bids for the
sale of chlorine pumps.
Financial Report – Steve Thayer
The current financial reports we re distributed and also the fi nalized adopted 2011 budget. Steve
noted that the septage revenues have exceeded budget projections.
Fourth quarter payments have been received by all owners. Unclassified revenues are invoices
to partners in October for their share of debt service and offset by an expense line in the budget.
Overall expenses are current ly running under budget.
We are currently $914,327 revenues over expenditures. Some of this will be used to pay end of
year expenses such as employee benefit budge t lines. The Professional Fees line includes
payments for the First Energy lawsuit.
There was an expense of $1,100 for the Flow Meter Upgrade project in the past month.
Operator/Engineering Report – Dan Ramer, Scott Gibson
The Energy Performance contract for JCI is bein g reviewed and prepared for voting at each
municipality. The Town of Ithaca has voted and passed a resolution in support.
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The five year NYSDEC inspection for registration of the Chem ical Bulk Storage tanks is now
due. We are currently soliciting quotes from several vendors and anticipate a possible cost of
$12,000 for this service.
A meeting has been scheduled between staff and the Information Technology Department to
discuss concerns regarding pendi ng policies for the purchase and use of various computer and
software equipment.
Staff attended the Fall NYWEA Meeting on October 29 th at the American Legion in Ithaca.
There was an excellent discussion regarding hyd rofracking and the impacts that it has on the
environment.
Amendments 7 & 8 for Stearns & Wheler have b een approved for the Misc. Plant Improvement
projects.
The second Unwanted Household Pharmaceutical s collection day was held on October 16, 2010.
Over 400 customers were served and over 700 pounds of material was collected and disposed of.
Dan Ramer and Mayor Carolyn Pete rson participated as walkers.
Dan Hoffman submitted a proposed resolution for the Approval of SJC Funding of Proposed
Settlement of First Energy v Ci ty of Ithaca (attached).
MaryAnn moved to discuss the First Energy liti gation in executive session. Rich seconded
the motion.
Entered Executive Session 1:25PM
Back in Session 1:37PM
MaryAnn moved to accept the settlement propos ed in the resolution. Herb seconded the
motion. The members voted unanimously to accep t the resolution as written to pay First
Energy $200,000 with no interest, to be paid in 10 annual payments of $20,000 beginning in
2011 with funds coming from the exis ting budget per Bill and Steve.
The portion of the Cayuga Waterfro nt Trail affecting the plant pr operty line has been completed
and the landscaping has begun.
On a motion, the meeting adjourned.
The next meeting is scheduled for December 8, 2010.
Proposed SJC Resolution (11/10/10)
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Approval of SJC Funding of Proposed Se ttlement of First Energy v. City of
Ithaca
WHEREAS, in 2009, the City of Ithaca was named as a third-party defendant in a lawsuit in federal court
initially involving First Energy Corp. and New York State Electric & Gas Corp. (NYSEG), regarding
liability for the cost of remediation of contamination at the site of the Ithaca Area Wastewater Treatment
Facility (IAWTF), which site is referred to therein as “the First Street Site;” and
WHEREAS, in that lawsuit as against the City (as title owner of the site), First Energy seeks contribution
from the City, under the federal Comprehensive Envi ronmental Response, Compensation and Recovery
Act (CERCLA) for any financial liability First Ener gy may be found by the Court to have, for said
contamination and remediation; and
WHEREAS, the site in question was the location, fro m approximately 1929 until 1934, of a manufactured
gas plant operated by NYSEG and/or First Energy, and a by-product of such gas manufacture is coal tar,
now known to be a hazardous substance; and
WHEREAS, the City obtained the site in question from NYSEG in 1959, and, in the 1980s, in partnership
with the Towns of Ithaca and Dryden, and under the auspices of the group now known as the Special Joint
Committee (SJC), constructed the IAWTF there; and
WHEREAS, during excavation for said construction, large quantities of coal tar and coal tar-
contaminated soil were discovered below the ground, and were treate d in accordance with instructions
from NYSEG and the NYS Department of Environmen tal Conservation, including storage on-site for
over 10 years prior to removal and disposal by NYSEG; and
WHEREAS, as a result of the lawsuit, the municipal members of the SJC decided to share in the legal
costs associated with the City’s defe nse, and in the cost of any award against the City (or of a settlement
endorsed by all of the partners), according to the te rms of an “Agreement As to Legal Defense Costs and
Damages (if any) Associated with a Lawsuit Against the City of Ithaca Regarding the Ithaca Area
Wastewater Treatment Facility Site” (dated 12/29/09); and
WHEREAS, the City retained special counsel to prov ide a defense in this matter, namely, the law office
of Menter, Rudin & Trivelpiece, of Syracuse, New York; and
WHEREAS, a motion for summary judgment dismissing the case as against the City was recently denied
by the United States District Court, on the grounds that there were questions of fact as to whether the
construction of the IAWTF and the treatment of the contamination discovered during that process in some
way exacerbated the contamination, thus requiring a trial of the matter; and
WHEREAS, special counsel, in consultation with th e Mayor and Supervisors and municipal counsel, has
negotiated a proposed settlement of this matter, whic h settlement is recommended by special counsel and
the attorneys for the City and the Towns, in order to limit the partners’ legal costs and to avoid the risks
and unknowns of trial (and potential appeals); and
WHEREAS, the Common Council of the City of Ithaca and the Town Boards of Ithaca and Dryden have
all endorsed the proposed settlement; now therefore be it
RESOLVED, that the Special Joint Committee hereby approves of the allocation of funds from the
appropriate SJC account(s), for the purpose of impl ementing a settlement of the case of First Energy v.
the City of Ithaca, et al, as agains t the City, provided such settlement shall include the following terms:
(1) payment of $200,000 to First Energy, in 10 equal, annual pa yments of $20,000 each
(i.e., with no interest), in accord with the te rms of the above-referenced “Agreement As
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to Legal Defense Costs and Damages (if any) Associated with a Lawsuit Against the
City of Ithaca Regarding the Ithaca Area W astewater Treatment Facility Site;” and
(2) a release by First Energy of the City of Ithaca and the Towns of Ithaca and Dryden from
any and all liability for the contamination or remediation of the First Street Site.