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HomeMy WebLinkAboutMN-SJC-2021-10-132021.10.13 APPROVED SJC Minutes.doc 1 SJC MEETING October 13, 2021 SJC Members Staff Cynthia Brock, Chair Steve Thayer David Warden Scott Gibson Rich DePaolo Tee-Ann Hunter Guest Scott Reynolds Dan Thaete; Town of Ithaca Donna Fleming Joe Slater; Town of Ithaca Ray Burger; Town of Dryden (alternate) Kate Chesebrough; Witam Bill Goodman Mimi Hoang; nArchitects Sue Jeon; nArchitects Jim Cummings; Shoemaker Engineers Absent Amanda Morgan; Farmer’s Market Supervisor, Jason Leifer Nikki Cerra; Farmer’s Market Kelly Sauve; Farmer’s Market Cynthia called the Zoom meeting to order at 1:00 p.m. There were no changes to the agenda. Scott MOVED to accept the September 8th minutes. Seconded by Donna. Approved 5 - 0. Financial Report – Steve Thayer September 2021 Financial Activity: Revenues: We have received $427,000.00 in septage payments and are on budget. We have received two of the three owners fourth quarterly payments. The debt service invoices will go out within the next two weeks. Revenues collected to date $3,381,000.00. We should be at or above budget on the revenue side. Expenses: We have spent just over $3,545,000.00. Three accounts are over budget at this time. Hourly Part Time 5120 is $6,500.00 over budget – an adjustment will be made at the end of the year. Insurance 5445 is over budget. Equipment Parts and Supplies 5477 is running above budget. We have spent $187,000.00 on blower repairs and will continue to charge additional blower repairs to this account. Steve noted that the line 5477 has been increased for the 2022 budget. Most of the other accounts look fine and are in line with the budget. Our deficit is $164,000.00 and is in line as expected. Keep in mind that not all expenses follow the calendar. Capital Project: CAP422J – Plant Improvements had approximately $1,611,000.00 activity all but $22,000.00 was attributed to Construction - the $22,000.00 was Engineering Services. CAP425J – Chemical Bulk Storage Tanks had $5,900.00 in expenses. 2021.10.13 APPROVED SJC Minutes.doc 2 2022 Budget – Steve looks at current trends, past history and future expected activity. He briefed the members on the changes from the 2021 budget. Expenses -The salary account 5110 was adjusted by $37,000.00 to cover the CSEA Administration contract increase. An Assistant Chief was funded and the part time Financial Management Assistant was eliminated. $35,000.00 was added to replace a vehicle 5210. Utilities 5410 was increased $25,000.00. The Insurance account 5445 has been impacted by the pandemic and was increased $23,000.00 to $186,000.00. Equipment Parts 5477 has been increased in 2022. The employer pension contribution has decreased by $30,000.00 as a result of positive investment results. Health Insurance premiums are increasing 5% for 2022 to $404,000.00. We are doing better than the overall industry trend which is currently 10% or higher. Serial Bonds principal and interest have increased while the Bans principal and interest has decreased. The Bans are short term one-year notes. Steve has moved the short-term debt to long term debt to take advantage of the much lower long-term rates. We issued more debt in 2021 due to the plant improvement projects by about $200,000.00 Ray asked about the decrease in the Contractual Services 5435 line. Steve replied that a contract payment was completed in 2021. Ray asked which vehicle was going to be replaced. (CJ was not present to confirm). Ray asked about the interest on debt service. Steve explained timing has a lot to do with debt service. Debt issued in 2021 requires an interest payment in 2022. The principle payment begins the following year 2023. Cynthia asked about the defunding of the part time Financial Management Assistant. Scott Gibson replies that restructuring the office positions is being discussed. Revenues – Septage service was increased $125,000.00 based on previous years fees increases – the $620,000.00 is an adjustment of actual activity. Sewer service other governments $3,250,000.00 is the balancing account of the plant ownership. Debt service other governments – $204,000.00 is the offset of the expense. Interest – has been reduced a bit because interest rates are low. Partner Share - Consumption Activity of the three owners was collected and the 2022 partner shares were adjusted to reflect the changes. The City consumption decreased while the Town of Ithaca and the Town of Dryden increased. Steve does not recommend appropriating any fund balance at this point in time. Tee-Ann questioned the drop in the City’s consumption. Scott Gibson offered that the new development in the City replaced old - the changing to energy saving fixtures may have impacted consumption. He added that the City has repaired water mains and said that the new Water Treatment Plant uses less water than the old plant. Tee-Ann asked if the flow meters would be used to determine consumption. Scott Gibson replied the Kline Road demonstration revealed the limitations of our meters. He said the board will have to decide the future use of the meters but added that they are a good tool for I/I. 2021.10.13 APPROVED SJC Minutes.doc 3 Cynthia said that the cost to calibrate and maintain the meters is prohibitive to use as a billing tool at this time. Bill suggested that the drop in consumption might be attributed to the pandemic and the lack of students in the City. Steve offered that it was a combination of things – consumption fluctuates from year to year. Cynthia is interested in graphing the data to see if more of a determination can be made as to the drop. Scott Reynolds said that the flow meters might be used as a tool to aid in surge charging and as an incentive to tighten it up I/I. Tee-Ann MOVED that the SJC Supports the Adoption of the Recommended 2022 IAWWTF Budget. Seconded by Bill. Approved 8 – 0. Operations and Engineering Report – Scott Gibson 1. Plant Maintenance & Operations – a. Primary Digester – The primary digester work is ongoing. The primary cleanout is complete. The bend in the mixer shaft has been addressed. The cover repair is complete. Additional funding was approved to complete the secondary digester dewatering and cleaning. Scott hopes that all of the additional funding will not be necessary. He hopes to be back on line by January or February 2022. b. Aeration System – Turblex Blower Replacement Authorization – The estimated return of the blowers is January 2022. 2. Facilities Maintenance & Operations a. Flow Monitoring I/I – continuing. The project is nearing completion. 3. Staff Management – Chief Operator is retiring in June 2022. The opening has been posted. We were hopeful to have someone in place by December - there has been only one applicant to date. Scott mentioned the national labor shortage and his suspicion that the low starting salary may be a part of the reason for the lack of applicants. 4. Reporting – 5. Business, Long Term development – 6. Energy Production Statistics – provided by CJ. Voting Items - Presentation - Farmer’s Market Design Team - Cynthia said that the presentation is a result of the working group feedback. Kate Chesbrough requested that the SJC give a conceptual approval for SEQR purposes. Mimi Hoang presented. She recapped the constraints – NYSEG easement to the South, the waterfront setback to the North and the wastewater plant pipe easement. 2021.10.13 APPROVED SJC Minutes.doc 4 The permanent winterized portion of the structure is flanked on each side by covered areas. There is an upper and a lower roof to maximize the clearance to the pipe – a portion of the lower roof and rafters is removable. She requested approval for the placement of the columns which are 36 feet apart. Dan inquired about sheet piling. He is concerned about sluffing and who would be liable. Mimi replied that sheet piling would make things easier but it is not needed structurally. David feels that the heights have been address very effectively. He added that sheet piling is a concern and feels it is very important that it be included. Scott Gibson stated that sheet piling would protect both parties but would protect the Farmer’s Market more than it would protect us. Joe asked if any soil borings were taken. He is an advocate for the sheet piling. He wondered if the slope met OSHA requirements. Kate said that soil borings have not been taken for this project. David added that the soil is very unstable. Cynthia read the portion of the deed that pertained to the easement. It states “said permanent easement shall not preclude above ground construction by the City, its lessee or sub-lessee provided such construction is timely removed at the City or its lessees, or its sub-lessees sole cost upon prior written notice of the need to use such pipeline easement area without obligation on the party of the second part to restore or replace any such structures”. The deed is currently written that it is at the sole cost of the Farmer’s Market to replace any structures that are removed as a result of the need to access the easement. Scott MOVED to Accept the Resolution Acknowledging Concept and Location of Ithaca Farmers’ Market Redevelopment Elements and Recommending Encroachment License or Amended Easement. Seconded by David. Approved 8-0. Resolution Acknowledging Concept and Location of Ithaca Farmers’ Market Redevelopment Elements and Recommending Encroachment License or Amended Easement-- Ithaca Area Wastewater Treatment Facility Whereas, the City of Ithaca, Town of Ithaca and Town of Dryden (“Municipal Owners”) have a “Permanent Easement” to accommodate maintenance, repair, and replacement of the current sanitary sewer outfall pipeline of the Ithaca Area Wastewater Treatment Facility (“IAWWTF”) and a “Plant Expansion Easement” to accommodate future expansion of the IAWWTF, and Whereas, the Permanent Easement is located 15 feet each side of the current sanitary sewer outfall pipeline, and the Plant Expansion Easement is 50 feet in width and along a portion of the southwest and westerly line of the IAWWTF property at 525 Third Street in the City of Ithaca, as described in the Warranty Deed with Lien Covenant from the City of Ithaca to the City of Ithaca, Town of Ithaca and Town of Dryden, dated December 22, 2011 and recorded in the Tompkins County Clerk’s Office on December 27, 2011 as Instrument No. 585279-001, and Whereas, the Permanent Easement and the Plant Expansion Easement are shown on the attached Boundary Map titled “Survey Map for Wastewater Treatment Facility Site and Steamboat Landing Site Located at Third Street, City of Ithaca, Tompkins County, New York,” prepared by T.G. Miller P.C., dated October 9, 2008 and last revised November 3, 2011, and recorded in the Tompkins County Clerk’s Office on December 27, 2011 as Instrument No. 585279-002, and 2021.10.13 APPROVED SJC Minutes.doc 5 Whereas, the City of Ithaca owns the land on which the Permanent Easement and the Plant Expansion Easement are located, the Ithaca Urban Renewal Agency (IURA) leases the land from the City, and the Ithaca Farmers’ Market Cooperative, Inc. subleases the land from the IURA, and Whereas, the Ithaca Farmers’ Market is proposing a redevelopment of its facilities and on-site utilities which would encroach into the Permanent Easement and the Plant Expansion Easement areas, and Whereas, members of the Special Joint Committee (“SJC”) and Municipal Owners’ staff have met with Ithaca Farmers’ Market Representatives to discuss the proposed redevelopment and its impact on the Permanent Easement and the Plant Expansion Easement, and Whereas, at its October 13, 2021 meeting, the Special Joint Committee heard a presentation from Ithaca Farmers’ Market representatives and discussed the proposal as shown in plans titled “Ithaca Farmers Market, SJC Small Group Presentation,” dated September 30, 2021 and prepared by nARCHITECTS (the “Plans”), now, therefore be it Resolved, that the SJC (1) acknowledges the concept and location of the facilities proposed to be located within and above the Permanent Easement and Plant Expansion Easement Areas, and (2) recommends to the Municipal Owners that at the appropriate time, they and the City of Ithaca approve an encroachment license or amended easement to allow such facilities, provided that such facilities are located and built substantially as shown on the Plans, and Ithaca Famers’ Market installs sheet piling as Municipal Owners’ engineers deem necessary. Cynthia stated that she would like to see a cost estimate to install the sheet piling and suggested possibly sharing the cost. Donna pointed out that the purpose is to guarantee that the easement is not compromised. Mimi said that the columns will sit on deep piles and will go well below that which will be needed to be excavated. The structure of the new building does not depend on the sheet piling at all. The cost of the sheet piling is $250,000.00 and the cost to remove and replace the roof is $250,000.00. Kate stated that the current plans do not include sheet piling at the easement. She requested that the drawings be conceptually approved as presented and if changes need to be made the plans will be revised. They simply need approval for SEQR review. Cynthia is reluctant to remove any reference to sheet piling in the resolution. Kate said that the City Planning Department requested approval from this board. Rich questioned why the approval of this board is necessary. Kate said they need something in writing to present to planning that acknowledges that this discussion is taking place. Cynthia said there is risk moving forward but the risk is born by the Farmer’s Market. Cynthia is not willing to take on any additional liability in terms of any required repairs resulting from access to the easement. Discussion Items – Chief Operator Compensation Discussion – 2021.10.13 APPROVED SJC Minutes.doc 6 Scott Gibson stated that the compensation of the chief has been discussed numerous times over the past twenty years. He believes the position should be in the Management Unit – which might allow more flexibility. Scott Reynolds asked how much more money may be necessary. Scott Gibson said that based on CJ’s input the salary should be increased $20,000.00. Scott offered that the salaries are published publicly so we should not have any trouble finding a comparable plant. Dave remembers that the position could not be moved to the managerial unit for one reason or another. Cynthia said that the administrative barrier needs to be overcome. Scott Gibson brought up that other positions are sometimes affected creating more difficulty. Cynthia asked if discussions are being held at upper levels. Scott Gibson replied that the labor shortage and the pandemic have contributed but that there are problems across the board. Tee-Ann would like to see the scoring of the position. Donna volunteered to speak with Schelly and Val to get some facts. Joe will have a conversation with Judy Drake of the Town. Steve stated that there are many complicating factors – it must run through HR – but he feels that something can be done to improve things. Cynthia was told that the salary of the Bolton Point operator is $100,000.00. Scott Gibson said that a consulting firm might have to be brought in to run the plant. He will share the updated costs when they are available. Cynthia will include the salary of the Chief Operator is as a discussion item at the November meeting. Peak/Shave/Plant to Plant – Moved to the November Meeting. Announcements / Other Business – Cynthia Adjourned the meeting at 3:04 p.m. The Next Meeting will be November 10th, 2021, 1:00 pm.