HomeMy WebLinkAboutMN-CC-2006-07-26COMMON COUNCIL PROCEEDINGS
CITY OF ITHACA, NEW YORK
Committee of the Whole Meeting 6:00 p.m. July 26, 2006
PRESENT:
Mayor Peterson
Alderpersons (10) Coles, Seger, Berry, Clairborne, Tomlan, Zumoff, Gelinas,
Townsend, Cogan, Korherr
OTHERS PRESENT:
City Clerk – Conley Holcomb
City Attorney – Hoffman
City Controller – Thayer
Planning and Development Director – Van Cort
Deputy Planning & Development Director – Cornish
Community Development Director – Bohn
Deputy Director of Economic Development – DeSarno
City Planner – Kusznir
Assistant City Engineer – West
Assistant City Attorney - Dunn
PLEDGE OF ALLEGIANCE:
Mayor Peterson led all present in the Pledge of Allegiance to the American Flag.
SPECIAL ORDER OF BUSINESS:
Green Garage Financials/Cayuga Green II: Discussion (including possible
Executive Session and/or Advice from Counsel)
Assistant City Engineer West reviewed the project budget of $11,396,640. He
explained that the bids received for the project amounted to $12.9 million, making the
project approximately $1.5 over the funding authorization. City staff has reviewed the
bids and the project alternatives, and have produced alternatives to the project that
could minimize the over budget amount to $492,212.00.
Asst. City Engineer West reviewed all of the project alternatives and answered
questions from Common Council members. He explained that staff is comfortable with
a reduction in the project contingency funds from 10% to 7.6% as competitive bids have
been received.
City Planner Kusznir reviewed the summary of the Cayuga Green Phase II project
revenues and costs. She stated that the option to rehabilitate the current configuration
of the garage has increased in cost from $4.4 million to $8.4 million that includes an
increase in material costs, especially oil, steel and concrete products, as well as the
land acquisition underneath the garage. She further reviewed the projected debt
payment schedule for both the rehabilitation of the garage option, and the
reconstruction of the garage option.
City Controller Thayer explained that the City borrows funds twice a year, and issues
short-term notes as long as possible in order to receive the lowest interest rates. If the
reconstruction project starts in 2007, the first payment would be an interest only
payment that would be due in January, 2008. This first full payment that includes
principle and interest would be due in January, 2009. He further explained that $5
million has already been borrowed for this project for land acquisition and design costs.
This amount would need to be paid off in a five-year time period if the project is not
undertaken, or a 25-year period if the project is undertaken.
Discussion followed on the floor regarding the Cayuga Green Phase II project’s tax
abatements and its impact on the projected revenues. Alderperson Cogan explained
that the projects are evaluated by the amount of income that is generated by the
property, not just the property’s worth.
July 26, 2006
Common Council
Committee of the Whole
2
Further discussion followed on the floor regarding the timeline and process for decision-
making purposes. Mayor Peterson explained that the Contractors have agreed to
extend their bids for a 30-day period that is due to expire in the middle of August. The
City has to either award or reject the bids by that deadline. She stated that it is her
hope that Common Council would be able to vote on this issue at the August 2, 2006
meeting. She stated that she would submit the required Resolutions as Individual
Member Filed Resolutions on the Common Council agenda.
Alderperson Seger questioned whether there was still an option available to demolish
the garage and operate only the surface lot. Asst. City Engineer West responded that it
would cost approximately $1.2 million to demolish the helix and bridges. If the rest of
the garage was demolished, the total cost would be approximately $4.5 million including
the costs for land acquisition, design, finishing of the surface lot, and legal fees.
City Attorney Hoffman explained that there are additional implications to demolishing
the entire garage such as existing contracts, legal obligations, and the eminent domain
process. He stated that although the Cayuga Green Phase II project has been reduced
in scale, assumptions should not be made about the future development of the eastern
end of the property where the helix is located.
Alderperson Berry requested an Advice of Counsel session to further explore the City’s
contractual and legal obligations.
ADJOURNMENT:
On a motion the meeting adjourned at 7:30 p.m.
______________________________ _______________________________
Julie Conley Holcomb, CMC Carolyn K. Peterson,
City Clerk Mayor