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HomeMy WebLinkAboutMN-SJC-2020-12-162020.12.16 APPROVED SJC Minutes.doc 1 SJC MEETING December 16, 2020 SJC Members Staff Cynthia Brock, Chair CJ Kilgore Supervisor, Jason Leifer Scott Gibson Rich DePaolo Steve Thayer Scott Reynolds David Warden Guest Tee-Ann Hunter Dan Thaete: Town of Ithaca Bill Goodman Joe Slater; Town of Ithaca Donna Fleming Susan Brock; SJC Attorney David Harrick; TG Miller Absent Ray Burger; Town of Dryden Jason Crane; Edger Enterprises Cynthia called the Zoom meeting (previously scheduled for December 9th) to order at 1:02 p.m. Rich MOVED to accept the November 18th minutes. Seconded by Scott. Approved 6 - 0. Financial Report – Activity through November 30, 2020 – Steve Thayer. Revenue – We have collected $3,461,000.00 to date – we will meet and may exceed our budget. Septage Service - we have collected approximately $441,000.00 to date. Steve expects to meet or exceed the $495,000.00 budgeted amount. Sewer Service (other governments) – all three owner’s payments have been received. Debt Service was invoiced at the beginning of December. Interest Earnings will be booked at the end of the year. Sale of Equipment - we sold some equipment for $4,300.00. Expenses – We have spent $4,095,000.00 to date. Most expenses are on target – Keep in mind that all expenses do not follow the calendar. Utilities – is over by $66,500.00 related to the NYSEG meter error. Equipment Parts – is over by approximately $71,000.00 – we did increase this line for 2021. Insurance is over and has been increased for 2021. NYS Retirement in the amount of $117,000.00 was paid early. Our current deficit is $644,000.00 - Steve believes we will be near our $250,000.00 deficit at year end. Capital Projects – three projects had activity totaling $1,392,000.00 – approximately $9,000.00 was for Engineering Services – the balance was construction for the grit removal project. The 2019 Audit report should be available early in 2021. 2020.12.16 APPROVED SJC Minutes.doc 2 Operations and Engineering Report – CJ Kilgore and Scott Gibson 1. Plant Maintenance & Operations – a. Chemical Bulk Storage/Petroleum Bulk Storage Tank Bid – bid opened December 8, 2020 - Bongiovanni was the accepted low bidder at $320,000.00. We initially thought that $200,000.00 would suffice but had to increase the amount to $400,000.00. We had five bidders this second time around. b. Behind the Meter NYSEG Battery Project – waiting on NYSEG metering issues. Facilities Maintenance & Operations a. Grit Removal and Misc. Improvements – both generators are on site. b. Flow Monitoring – the project is continuing. Data has been being collected for approximately six months – including some rain data. We still have three stations to complete. A report should be ready within six months. c. Boiler Room Evaluation – the preliminary report was submitted by MRB Group acknowledging that the two newer boilers are problematic and should be replaced. The two older boilers are at the end of their lifespan. The recommendation will be to move forward with 3 or 4 new boilers for 2022. Scott Reynolds asked about the boiler replacement – CJ thinks that we should be able to get by – we should relocate the new boilers to an area with better air quality – he is considering the generator room when it becomes available. d. Trucked Waste Rates – CJ has been using the trucked waste facility for high strength waste but has been accepting septage waste at the head of the plant. There is not an easy way to measure the load, so CJ is starting out with charging 80% of truck capacity. He hopes that this will encourage haulers to bring in fuller loads - he does not anticipate any change in revenue. CJ is increasing the rate of grease from $90.00 to $95.00 per thousand gallons. 3. Staff Management – new operator trainee Kevin Kwiatkowski to begin January 4, 2021. 4. Reporting – 5. Business, Long Term development – 6. Energy Production Statistics – provided by CJ. Voting Items – Scott MOVED to Accept the Proposed Septage Receiving Rate Changes. SECONDED by Tee-Ann. Approved 8 – 0. 2020.12.16 APPROVED SJC Minutes.doc 3 RESOLVED, That the Special Joint Committee adopts the proposed Septage Receiving Rates presented on December 9, 2020, effective January 1, 2021. Bill MOVED to have Cynthia Brock serve as Chairperson to the SJC through December 31, 2021. Seconded by Rich. Approved 7 – 0, 1 Abstained. RESOLVED, That the Special Joint Committee appoints Cynthia Brock to serve as Chairperson of the Special Joint Committee of the Ithaca Area Wastewater Treatment Facility with a term to expire December 31, 2021. Rich thanked Cynthia for her dedication as Chairperson. City Harbor and Guthrie – David MOVED to Accept the Resolution that outlines and identifies the four different agreements. Seconded by Scott. Approved 8 – 0 Unanimously. RESOLUTION TO RECOMMEND APPROVAL OF AGREEMENTS: (A) AMENDMENT TO EASEMENT FOR OUTFALL PIPE FACILITIES, (B) AGREEMENT FOR ACCESS TO AND USE OF EFFLUENT AND ACCESS AGREEMENT, (C) EASEMENT TERMINATION AND RELOCATION AGREEMENT, AND (D) PROXIMITY DISCLOSURE AGREEMENT WHEREAS, City Harbor, LLC, a New York limited liability company (“City Harbor”) is the owner of certain real property located at 101 Pier Road in the City of Ithaca, County of Tompkins, State of New York, designated as Tax Map Parcel Number 17.-1-1.3 (the “City Harbor Property”); and WHEREAS, The Guthrie Clinic, a Pennsylvania non-profit corporation (“Guthrie” and, together with City Harbor, “Developers”), is the owner of certain real property located at 101 Pier Road in the City of Ithaca, County of Tompkins, State of New York, designated as Tax Map Parcel Number 17.-1-1.2 (the “Guthrie Property”); and WHEREAS, the City of Ithaca, Town of Ithaca, and Town of Dryden (the “Municipalities”) collectively own and operate the Ithaca Area Wastewater Treatment Facility located at 525 Third Street in the City of Ithaca, County of Tompkins, State of New York (the “Facility”); and WHEREAS, the Developers have met multiple times with the Special Joint Committee (the “SJC”) of the Facility and its designated representatives to discuss plans for development of the City Harbor Property and the Guthrie Property which involve multiple agreements with the Municipalities, and WHEREAS, on August 21, 2019, the SJC adopted a resolution recommending the Municipalities enter into an agreement with City Harbor allowing its use of Facility effluent to heat and cool a development on City Harbor Property, pursuant to specified terms and conditions; and WHEREAS, in relation with the developments on the City Harbor Property and Guthrie Property, on June 17, 2020, the SJC adopted a resolution recommending the Municipalities 2020.12.16 APPROVED SJC Minutes.doc 4 release a sewer easement, abandon in place an unused 30” outfall, and enter into a replacement easement with Developers; and WHEREAS, representatives of the SJC and staff have negotiated the following four agreements with Developers: (A) Amendment to Easement for Outfall Pipe Facilities, (B) Agreement for Access To and Use of Effluent and Access Agreement, (C) Easement Termination and Relocation Agreement, and (D) Proximity Disclosure Agreement; and (A) AMENDMENT TO EASEMENT FOR OUTFALL PIPE FACILITIES WHEREAS, the Facility discharges treated sewage effluent (the “Effluent”) into Cayuga Lake by way of an outfall pipe owned by Municipalities (the “Discharge Pipe”) that runs through the City Harbor Property pursuant to an easement granted to the City of Ithaca (as Agent-Municipality, acting on behalf of itself, the Town of Ithaca, and the Town of Dryden, as tenants in common); and WHEREAS, the Developers and Municipalities wish to amend this easement to establish and confirm the rights of City Harbor to construct and maintain within the easement parcel certain facilities and improvements necessary for the development and use of the City Harbor Property and the Guthrie Property (the “Amendment to Easement for Outfall Pipe Facilities”); and (B) AGREEMENT FOR ACCESS TO AND USE OF EFFLUENT AND ACCESS AGREEMENT WHEREAS, Developers intend to access and utilize the Effluent flowing through the Discharge Pipe in order to provide for the heating and cooling of improvements to be constructed upon the City Harbor Property and Guthrie Property, pursuant to a certain Agreement for Access To and Use of Effluent and Access Agreement by and among City Harbor, Guthrie, and Municipalities (the “Effluent Use Agreement”); and (C) EASEMENT TERMINATION AND RELOCATION AGREEMENT WHEREAS, as authorized in the Municipalities’ 1984 Joint Sewer Agreement, the City holds for the benefit of the three municipal owners of the Facility rights to (1) a 10-foot wide sewer easement, and (2) a 30” outfall pipe (30” Outfall) located therein that served the old City wastewater treatment plant and has not been used since the Facility began operations, (“Sewer Easement”); and WHEREAS, City Harbor and Guthrie, property owners of the respective tax map parcels 17.-1-1.3 and 17-1-1.2 on which the Sewer Easement is located, have requested that the Municipalities release rights to the Sewer Easement and 30” Outfall; and WHEREAS, City Harbor has offered to convey to the Municipalities a 20-foot wide replacement easement to run between Cascadilla Creek and the City property line along Pier Road (the “Replacement Easement”); and 2020.12.16 APPROVED SJC Minutes.doc 5 WHEREAS, City of Ithaca and Town of Ithaca staff recognize the release of rights to the Sewer Easement and 30” Outfall and acceptance of the Replacement Easement offered by the Property Owners would not be detrimental to the Municipalities; and WHEREAS, in consideration for, and to cover the expenses of, the release of its rights to the Sewer Easement and 30” Outfall, the Developers have agreed to pay the City of Ithaca $2,500, and WHEREAS, the Municipalities must undertake individual processes to authorize divestment of real property, which are subject to permissive referendum; and (D) PROXIMITY DISCLOSURE AGREEMENT WHEREAS, in connection with and as consideration for the execution of the Effluent Use Agreement and Easement Termination and Relocation Agreement among Developers and Municipalities that will allow improvements to be built on Developers’ properties, Municipalities have requested from Developers, and Developers have agreed to provide to Municipalities, a commitment to disclose their respective Property’s proximity to the Facility to each purchaser of or tenant leasing space within, upon, or for maritime docking adjacent to their Property; now therefore be it RESOLVED, that the SJC recommends its municipal boards undertake the authorization of the agreements attached hereto: (A) Amendment to Easement for Outfall Pipe Facilities, (B) Agreement for Access To and Use of Effluent and Access Agreement, (C) Easement Termination and Relocation Agreement, and (D) Proximity Disclosure Agreement, contingent on all municipalities approving each agreement and on all such approvals becoming effective; and be it further RESOLVED, that the SJC recommends to its municipal boards that the effective date of the: (A) Amendment to Easement for Outfall Pipe Facilities, (B) Agreement for Access To and Use of Effluent and Access Agreement, (C) Easement Termination and Relocation Agreement, and (D) Proximity Disclosure Agreement occur simultaneously. The Easement Termination and Relocation Agreement - Susan Brock stated that two issues were still open. City Harbor requested that the wording include “non-exclusive easement” rather than easement. City Harbor would like to include/allow various utility easements (future easements for lines to be built - a city water line, a storm water line and an effluent use line will be built). (G107 drawing). Section 5 – reserve rights of City Harbor. Anything shown on the plan as submitted can be built - drives, curbs, benches and surface improvements would be allowed. All buildings within the replacement easement will be prohibited. SJC approval would be required for anything that has a foundation. The members felt that the changes were acceptable. Susan Brock briefed the members of the substantive changes to the easements and agreements. 2020.12.16 APPROVED SJC Minutes.doc 6 The Outfall Easement - had a clarification added as to the definition of the term BYPASS. The bypass will be owned by the municipalities. It is our infrastructure - we control who does the work/repairs – they have to pay for it. The effluent use agreement – the billing needs to be worked out – Cynthia will consult with Steve Thayer. The DEC is reviewing the request of the use of our effluent by City Harbor. The DEC is considering proposing a continuous temperature monitoring requirement. The developer will be responsible to reimburse the municipality for any additional equipment required by the DEC as a result of their system. Rich asked the termination options if something unpredicted occurs. Susan replied that municipalities have the right to terminate under a number of conditions. At the request of Donna – Susan spoke of the how the agreements/easements evolved. Bill asked for a summary of the effluent use fee calculation. Cynthia explained the use fee. She used standard engineering calculations that is used to estimate energy usage based on: square footage, type of heating and cooling system, the energy efficiency of the building, and average heating and cooling hours per this part of the country. The effluent use fee is charged on a portion (15%) of the energy saved by utilizing the effluent source heating and cooling instead of air source heating and cooling. The effluent use fee is set based on market value for electricity of the initial year, and will increase 2% each year for 40 years – the duration of the agreement. Cynthia thinks that this is an innovative technology. She added that this resolution has to go to all three municipal boards for approval because it includes a transfer (or abandonment) of property. It is subject to permissive referendum in the Towns and possibly in the City as well. Many thanks were exchanged - Cynthia thanked Susan for all of her hard work. Jason Crane said that he appreciated all of the support – and added that he looks forward to being a good neighbor. Cynthia wished everyone a Happy End to 2020 and a Happy New Year. Announcements / Other Business – Cynthia Adjourned the meeting at 2:20 p.m. The Next Meeting will be January 13th, 2021, 1:00 pm.