Village of Buchanan
Mayor & Board of Trustees
Special Meeting
August 31, 2009

PRESENT:

Mayor Alfred Donahue
Trustees Theresa Knickerbocker, Sean Murray, Gail F. Richard and Brian Smith
Village Attorney Stephanie V. Porteus
Village Secretary Susan F. Matthews

ABSENT:

Village Administrator Thomas J. Jankowski

OTHERS:

Police Chief Brian Tubbs
Mr. James Annicchiarico
George Smith

SPECIAL MEETING

PART I – Executive Session to interview candidates for police officer

1. At 6:00 PM, a MOTION to open the meeting was made by Trustee Richard, seconded by Trustee Murray with all in favor.
2. At 6:01 PM a MOTION to enter into Executive Session to interview a new police officer was made by Trustee Murray, seconded by Trustee Richard with all in favor.
3. At 6:20 PM a MOTION to end the Executive Session was made by Trustee Murray, seconded by Trustee Richard with all in favor.
4. At 6:40 PM a MOTION to close Part I of this meeting was made by Trustee Richard, seconded by Trustee Murray with all in favor.

PART II – Discuss the possibility of bonding/financing work to the Village Sewage Treatment Plant and infrastructure

5. PLEDGE OF ALLEGIANCE:

Mayor Donahue opened the Special Meeting at 7:00 PM and led the Pledge of Allegiance.

Mayor Donahue noted that Police Chief Tubbs was present before the Board went into Executive Session.

Trustee Knickerbocker commented that she would give an overview of the plan for the Sewage Treatment Plant. She thanked Trustee Smith for getting the survey done because that was so critical in applying for this and having a foundation for getting this money. Trustee Knickerbocker also thanked Tim Cronin and Jim Annicchiarico from Cronin Engineering for getting this together within a week’s time by running with this application and getting it started because it was a very short amount of time. She did not get the information or find the contact people until the beginning of August. Trustee Knickerbocker commented that George Smith and the Board worked as a team to get it off the ground. She found with the State under the NY Clean Water State Revolving Fund (CWSRF), the money that is available is through the State but it is bonding. It is a AAA rated bonding, which is the best possible rate you can get. It is a 30 year loan. We have extensive work to do at the Sewage Treatment plant and the survey points to that. If anybody wants to review what Cronin Engineering has compiled, they will leave it available for people. We are looking at repairs exceeding a million dollars. The plant has not been rehabilitated for many years. Trustee Knickerbocker commented that concerning the Clean Water Funding, the contact she made was Fred Testa who works for the New York State Environmental Facilities Corporation. Trustee Knickerbocker advised that not only is he an engineer but he is also someone who goes to the municipalities and actually works with them to get the project rolling and to get the funding and everything necessary. What they found with him, because they had a conference call at Village Engineer Cronin’s office, was that he was knowledgeable and extremely helpful. Trustee Knickerbocker commented that you could not ask for a better contact person. He will continue to work with the Board as they go through this. We are on a very tight time schedule and have until September 4 to do the submission. After last Friday’s conference call, they all were there including George Smith, James Annicchiarico and Tim Cronin. Everything was spelled out and questions were asked. They also asked the engineer whether they can get the packet together on time for the September 4th submission. Trustee Knickerbocker reported that she was happy to say they will be ready for September 4th. Trustee Knickerbocker thanked Mayor Donahue for having this meeting as it is so important so that everybody is on the same page. They know what the program is so they can move this forward. She commented that the bonding does not guarantee that we get the money. We get onto a list. According to the engineering report that we submit, we get put into different categories. We are competing with communities of our size, not New York City. We are put on the annual list called the Intended Use Plan. We go on a numerical scoring. The more critical our plant and the more problems we have with the plant are used for the scoring. Fortunately, we are within our permits with the State, but it depends on different things as to how we are rated. Once this is submitted by September 4th, the fiscal year for this comes out in October. From October of this year until September 30, 2010 is the fiscal year. We will find out sometime in October where we fit in on the list. If we are above a certain line, we have the possibility to get the low cost funding. It is low interest. In some cases depending on the situation, it is no interest. It is a AAA rated bond. You can get a long term of 30 years or a short term is also available. Trustee Knickerbocker reported that there is also money available to finance the planning and the design of the construction which, if everyone has read the packet, you can see that the engineering costs are also substantial. When we do rehab this, you realize that the specs are very detailed and there is extensive work with the engineering. The money that is available to do this has also come from stimulus money. The Federal Government has given this organization money to dole out to other communities under the stimulus fund. Also there are other things we can also get out of this with NYSERDA. There might be some funding available within this whole spectrum for the energy efficiency of the equipment. The good thing is that this is only one part of this. We submit this in September. We will have information where we fit on the list. The communities that have not made a decision by March, if they do not accept the monies or if they are not ready to do what they need to do, if we are below the line, there might be a possibility to get on above the line on the list. If we do not make the first cut, we might be available to the second. Trustee Knickerbocker thinks that it is in the Village’s best interest to do this. We are not committed to anything doing this. We are just being put on the list now. We can see where we are going to go with this. If the plant fails, we have to do something quickly and it is a substantial amount of money. Just to be put on the list right now is in the best interest of the Village. Trustee Knickerbocker commented that after this, she talked to the Village Engineer about this. There is also money available through the DEC which is actual funding under the WQIP Program. She was in favor of focusing on what we have right now, to get this application in and then get on to the next phase. This is just a basic overview of how the plan works. She commented that the Village Attorney has looked through the agreements. Trustee Knickerbocker wanted to discuss this with the Board to see if there are any questions, anything to add in or any concerns.

Mayor Donahue commented that present at this meeting tonight are Mr. Annicchiarico from Village Engineer Tim Cronin’s office, and George Smith our Sewage Treatment Plant operator.

Trustee Murray commented that reading the draft report submitted, it would appear that some of the information is not exactly correct. He referred to the project description on the front page, the residential break down, the size and how much used by facilities. Trustee Murray commented that according to the Master Plan, according to the existing land use in 2003, by then Village Engineer Jim Hahn, the existing land use is 714 acres and not 618 acres in use. Where it reads 65 acres in use for businesses, light and heavy industrial, Entergy, according to Mr. Hahn’s breakdown, it is 380 acres which is approximately 48 percent of the Village which is industrial. Trustee Murray does not know where Mr. Annicchiarico got his numbers from as they are not the same as the other reports they have. James Annicchiarico commented that they got the numbers from the web site. He will address it.

Trustee Murray commented that the way the State lists its projects in the NY State Clean Water Revolving Fund Act is by the size of the communities. There are different allocations for different sizes. He does not know how it would impact what we are asking for. Trustee Murray commented that we received a report today from the New York State Environmental Conservation which seems to be a repeat from the last three inspections from them. He had a couple of questions about this. He questioned whether right now we are manually removing waste from the top, removing grid from the area of the tanks. It says that all are Comminutors now and what are we using for Comminutors. Mr. Annicchiarico commented that the existing Comminutor, which is where the effluent comes into it and it is the first thing that it hits, apparently, he is under the understanding that it has not been working for 25 years. Trustee Murray wanted to know what grinds it. Mr. Annicchiarico noted that nothing grinds it right now. The letter that he gave the Board talked about the uneven unsettling of the material says that is due to Cook. According to the three inspection reports, it says that the uneven settling is due to the ware gates not being level and the Comminutors is not grinding the sludge. Maybe one has a little bit more than the other. Trustee Murray commented that there are three or four inspections from the State saying that the uneven settling is not due to the effluent. It is due to the equipment not equally distributing it. Mr. Annicchiarico commented that it is his understanding that the problem that is happening right now is originating from the settling being received from Cook is due to the different type of bacteria that is growing and not debris that is not being ground up by the Comminutor. Trustee Murray read that it does not settle due to the filaments that have a tendency to bulk up similar to that of mesh and steel wool. Mr. Annicchiarico commented that the filament would be the type of bacteria.

George Smith commented that the Comminutor has nothing to do with the facility. The Comminutor is at the head of the plant. It was taken out of service when he started working there in 1984. It was recommended to take it out and use the bar screen for the screenings. The Comminutor grounds up the rags? coming through. It has nothing to do with the settling.

Trustee Murray commented that he may be combining two questions. When we send our material to our settling tanks, everything is ground up. It sounded strange to him that this material is not being ground up. According to the reports from all the different agencies, it is not being evenly distributed because of the wear gates. He was not sure what the ware gate’s function is in the distribution of our solid waste but it sounds like there are other problems other than just the infiltrate. George Smith commented that the Comminutor is at the beginning of the plant and just grinds everything up. The wares are in the settling tank. All the sewage goes into the settling tank. It settles and goes up to the top of the wares. The waters are all uneven. It has nothing to do with the Comminutor. It is a completely different operation.

Trustee Murray commented that he was just trying to understand from the engineer that he is talking about uneven settling. Our reports state that the contributing facture to the uneven settling is due to the uneven wear gates. Mr. Smith noted this was correct. Trustee Murray continued that the engineer is saying in his report that the excess infiltrate is causing the material not to settle. Mr. Smith commented that they believe that is correct.

Trustee Murray commented that his interpretation, noting that he is not an engineer, is that one person says it is not settling because of the wear gates and the other is because of the type that is coming in. George Smith commented that the wear gates have nothing to do with the settling. It is not settling because they believe it is the infiltrate that they are receiving from Cook.

Mr. Annicchiarico commented that they are talking about two things. One thing is the filament that they talked about is the bacteria that is not settling and that is what is causing the unsettling and causing the problem of getting close to the permit limits. The other settling is in terms of the sludge and is the bigger item.

Trustee Murray commented that if they recommended the removal of the Comminutor 25 years ago, then why are they saying that we have to install another Comminutor. Mr. Smith commented that back then we had trouble with a lot of solids getting through the Comminutor. It was not grinding efficiently. The County gave us the okay to use the bar screen only, to take the Comminutor out of service. They never put it back in service since then. He commented that they never made an issue out of it until recently. Trustee Murray commented that it is mentioned in the 2008 and 2009 reports. Mr. Smith commented that there are new inspectors, new ways of thinking about it and they want to see it back in service.

Mr. Annicchiarico commented that the way they look at it is if you are not operating the plant the way it was designed, you are in violation. Technically, it may have been for all those years without it, but now a new inspector comes in and looks at it and says they are not operating as they should.

Trustee Murray commented that he did not see the application in the packet from the New York State Resolving Fund. There is a three page application that has to be filled out. Mr. Annicchiarico commented that there is an application but it was not complete. That is why he did not submit it. Trustee Murray wanted to know whether he had it completed now. Mr. Annicchiarico commented that once they get the cost for the counsel and the bond counsel and we figure out who is going to be the municipal contact that is going to sign the application. Trustee Murray commented that we are at the stage that we have to have all that information by Friday. Trustee Knickerbocker commented that we are under the gun this week.

Trustee Knickerbocker wanted to know if they would you like to have Mr. Annicchiarico give an overview of the plant’s condition or were there any more questions. Mr. Annicchiarico commented the plant was built and put into service in 1960. It is close to 50 years old. Most of the equipment there that aerates the sewage is the original. Regarding Mr. Annicchiarico’s question to him, George Smith advised that the aerators and air ducts have been replaced. They are 17 and 18 years old and are due for replacement. Mr. Annicchiarico continued that we have had multiple miscellaneous inspections by various agencies. The Health Department, the DEC and the USEPA do their annual inspections. For the past three years at least, they have noted in their inspections about the wears being uneven and out of the balance and the Comminutor needing to be replaced. Mr. Annicchiarico noted that the plant was designed to handle a half million gallons per day. It has two sides identical to one another. Mr. Smith confirmed that currently and for the past 25 years only one side has been up and running. Mr. Annicchiarico continued that the Health Department, during the annual inspection the last two times, mentioned that the second side has to be up and running in case something goes wrong with the side that is running, to be able to do a switch over to that side and meet our permit requirements. He stated that we have always met the permit requirements which are testament to the way Mr. Smith runs the plant. Mr. Annicchiarico commented that the existing aeration system is that it aerates the water up to the top. New technology would be to replace what is there with a forced air, public diffuser system. It is like a fish tank. You have air bubbles at the bottom aerating the water. That would be what they would propose to replace the current aeration system with. Motors have to be replaced. Most of the instrumentation has to be replaced. Much of what is there right now needs to be replaced. It is years and years old and most of it is at the end of its useful life. When they spoke to the gentlemen at the Environmental Facilities Corporation, they asked him what they could include in the project and you can include basically anything that is part of your sewage infrastructure. Talking with Mr. Smith and knowing what we know, there are a few other issues at some of the pump stations, notably the Albany Post Road pump station. We have a generator that is 45-46 years old. (The age was confirmed by Mr. Smith). Mr. Annicchiarico advised that spare parts are not available for it and have not been for 20 years. The existing pump controls there are outdated and no replacements parts are available. It needs to be replaced. Similar issues are at the Fourth Street pump station. The pump, controls and generator for that need to be replaced. Trustee Smith noted that the generator was installed in 1976. Mr. Annicchiarico advised that in addition to that, we thought it would be a good time now, if we are getting money for the bond and doing the work within the system, to get anything else that Mr. Smith asked for in his last few budgets. A couple things are the spare pumps for the Bleakley Avenue and Valerie Court pump stations. The controls are okay at those stations but to have a spare pump on hand is really necessary in case something were to happen. The roof at the garage at the pump station is in need of replacement and it was included. Anything other than the plant itself or the pump stations, such as the utility truck or the pickup truck, could be deleted in the estimate. They thought that if they were going for a certain amount, they should get what they could to get it running smoothly.

Trustee Murray questioned whether the new pump they were talking about was the pump’s internals or is it the pump itself without the motor, inlet flange, outlet flange, or coupling. Mr. Smith advised that it is a submersible pump. It is a complete pump. Fourth Street is centrifugal. It is a different story. Mr. Smith commented that he had them inspected but would like to see them inspected to see what the mechanic thinks of them. Trustee Murray wanted to know whether they rebuild them and replace the mechanical seals. Mr. Smith replied that they do the packing on them. Trustee Murray commented that they are packing and are not mechanical seals. Mr. Smith noted that they are original pumps. Trustee Murray commented that they must have a pretty good leak on them as they have to continue to tighten up the packing. Mr. Smith commented that he thought the shafts were done once years ago. They are old. Trustee Murray wanted to know what the cost estimate of $5,000 for the Fourth Street pump is for and was it an entire pump, flange to flange or a rebuild. When he thinks of a replacement pump, he thinks they would take one out and put in a new pump and it seems a little bit cheap. Mr. Smith responded that it is centrifugal and he would have to look into it. Mr. Annicchiarico commented that the estimate for the centrifugal is the $10,000 and $5,000 is for the second pump for Valerie Court, which is a small station and not a very big pump. It would be a spare pump. Mr. Smith commented that the pump controls are obsolete and they cannot get spare parts. Luckily, the guy has been able to fix it. If we have a break down at that station where there are no parts available, they would have to have someone around the clock to pump it manually and call Cook in. This is for Fourth Street and Post Road which are the originals. Trustee Murray commented that it is just for the bubbler and they are staying the with MOBs and not switching over to the AOBs. Mr. Annicchiarico commented it is just for the air. Mr. Annicchiarico reported that at the Fourth Street pump station we have a ground water or seepage problem in the manhole with the pumps. Right now, it is corroding some of the equipment inside. Trustee Murray commented on seeping through the vault. Mr. Annicchiarico commented that looks like it is coming from the cover over the top of the man hole. Mr. Smith commented that it coming through the cracks.

Trustee Murray wanted residents to know what is being done today. It is not free money from the State. It is money we are borrowing from the State. We already authorized the $1500 for the exploration of the bond. This is money where we are going to be borrowing at a low interest rate. To get on the ballot for November, we have to have everything submitted 35 days before the election. We need all this information by the next Board meeting or we will not even be able to apply for it to put it on the ballot according to the New York State Department of Elections.

Trustee Smith commented that he reviewed the report briefly. The numbers did not surprise him, aside from the contingency. The pump stations are so old. He wanted to know if the ten percent contingency is realistic for that. Mr. Annicchiarico advised that generally you would have anywhere, depending on the size of the project, from 10 to 20 percent contingency, but in the application with the EFC, they do not want to see anything more than 10 percent. Trustee Smith wanted to know if any additional costs would be paid by the Village entirely. Mr. Annicchiarico commented that he had to revise the cost estimates. It is more than he submitted with the original application. He and Mr. Smith met with the representative from Rapid Pump on Friday and had him look over the cost estimates. He thought most of them were solid but he thought we should add some additional line items for a crane, which is something they had not thought of. Also, the remediation of the lead paint that has to be taken off the hand rails, cat walks and I-beams. They are all painted with lead paint. All the railings, cat walks, and I-beams have to be taken out. Not all of these railings need to be replaced if we go to the forced air diffuser system. We will not need the catwalks out to where the motors are turning the aerators as it is now, so that will be less.

Trustee Smith wanted to know if our cost for the SEQR was also written into this. Mr. Annicchiarico advised that it was. Part of that would be in the engineering costs. SEQR costs are for going through the Planning Board process.

Trustee Smith commented that his biggest fear, from his experience working in the capital project department, is that things creep up and change orders come out of nowhere. This is a big concern for us. We are so small, we cannot take a hit with something that was unforeseen by our engineers. He would be more comfortable with a larger contingency but we are limited. Mr. Annicchiarico noted that as Trustee Knickerbocker mentioned originally, they had a week to get it together. It is a difficult task. He made some phone calls, spoke to some people in the industry and went through all the information he could get that was available. This is what he came up with now. It could change, since obviously it is an estimate, once they get into more detail, engineering and all the rehab, But that is their estimate. Trustee Smith wanted to know if Mr. Annicchiarico was comfortable with this estimate. He advised that he was.

Trustee Murray commented that in the engineer’s report dated August 18, 2008, they had a cost of $50,000 for the lead paint removal and the replacements of all the railings with stainless steel. He wanted to know why they were saying that the cost is higher now. Mr. Annicchiarico advised that it was because he had the removal and replacement of the railings at $50,000 but they did not consider the cost of the remediation of the lead. Trustee Murray read from Rapid Pump about testing, sandblasting, inspecting, repairing deterioration, and repainting. Also for the railings, testing existing paint for lead, sandblasting, and repainting and replace with maintenance free aluminum or stainless steel. Mr. Annicchiarico commented that it was what was noted in his report and that is how they were thinking of doing it. Then, they did not feel that it was appropriate to sandblast everything and put a bubble over it. Trustee Murray commented that if you do not sandblast it, all you do is put some peel away where you are going to cut it and cut the railings out which would be less of a cost, not more. Mr. Annicchiarico commented that it was his cost to remove and replace the railings. In that cost of $50,000 was mainly the new railings. There was not much of a cost to remove and remediate, which means to dispose of it in the proper way. They put an extra $50,000 for the remediation of the metal. Trustee Murray wanted to know if he had another itemized list with the revision and whether they could have it. Mr. Annicchiarico commented that they could. It is two pages. Trustee Murray commented that the railings have not changed. Mr. Annicchiarico added a separate line item for the remediation of the catwalks and I-beams. Trustee Murray commented that it was a substantial increase. It is a $450,000 increase. Trustee Murray wanted to know what the increase was based on. Mr. Annicchiarico commented that mainly it was based on his meeting with the representative of Rapid Pump who did the inspection on the plant and his experience in that field. The crane was something that they did not have in the estimate in the beginning. On the question by Trustee Murray, Mr. Annicchiarico commented that we are going to need a crane at the site to remove the cat walks, pumps and the motors that are there. Trustee Murray commented that it is something that the contractors use and not something we are going to have to maintain; just something to be used during construction.

Trustee Murray questioned Village Attorney Porteus on whether we are looking to put a $980,000 bond for the roads and add another $1.4 million to it for the plant, or is it for two separate bonds. Village Attorney Porteus advised that her understanding about what Trustee Knickerbocker is proposing to do tonight is to authorize the submission of the application, get us on the list and pray to get offered the low cost funding. Trustee Knickerbocker commented that we must have the engineering done by March. This gives us time. Then when we get to the specs, we will then have a very detailed cost estimate. They were good to put this together within a week. Trustee Murray commented that then this one is not going on the ballot and we have plenty of time to worry about it. Village Attorney Porteus advised that it is not going on the ballot. If we were offered the money, we would notify the bond counsel and that would be separate. The roads could already be in the works. On the answer to Trustee Murray’s second question, we would be adding that to the bonding for the roads. If the Board approves the bonding of the roads, six months from now, it might be a million for the sewage treatment plant.

Trustee Knickerbocker commented that the good thing is that we also have help chapter two which is funding DEC with their Water Quality Improvement Project. It is also competitive. It is a reimbursement grant program which helps communities with their water quality. Our water treatment plants are municipal waste water treatment and that is one of the five projects that are eligible for funding. We might go in with this estimate and say we would like to bond this. Then again, this might come into play later on and we might be able to get some money from that too. It might work out. We have to hope we get put high on the list and are accepted. Right now, the thing is to get put on the list and put the application on the list. It is something we can discuss later as there is no obligation. We are just being put on the list with this.

Mayor Donahue commented that the way he feels, we are in a position that we have to move on the sewage treatment plant. We cannot operate without it. We have to do whatever is necessary. Mayor Donahue reported that we have to do the roads. He has spoken to the Highway Foreman many times. It is not just the roads. It is the water lines and everything else is affected. It is up to the Board. Mayor Donahue thinks it is necessary they move on both of these things, the Village Sewage Treatment Plant and the infrastructures.

Trustee Murray agreed. He was thinking more on logistical lines. He was thinking about what somebody might see when they see with $2.5 million on one lever. It would be a little more palatable if they see two levers: one with $900,000 and one with $1 million. Mayor Donahue agreed. Trustee Murray noted that the only reason he was asking was if we want them all on the ballot in November, we have to have the County Board of Elections notified 35 days prior and we are suntil in a time crunch. Trustee Murray wanted to be sure that the Village Attorney knows what has to be submitted to the County for the list to go forward.

Mayor Donahue agreed and noted that anyone who lives around here can see that we have to do something and have to take some action on the roads. Regarding the Sewage Treatment Plant, Mayor Donahue commented that tonight there is a representative from the Engineering Department and George Smith from the Sewage Treatment Plant present. We do not have a choice. We have to do what we can.

Trustee Murray commented that on the latest engineering proposal given to the Board, the date on the top is incorrect. Trustee Murray thinks it should say August 31 and is what it states on the bottom. He wanted the Board to change it.

Trustee Knickerbocker commented that the good thing is that since we are so close to the river that might help us to get put higher on the list because we discharge into the Hudson.

Mayor Donahue commented on whether the Board wants to move on the resolution.

Trustee Murray commented that they want to hear from the bond people.

Village Attorney Porteus commented that he can be helpful.

Thomas Myers, the bond counsel, commented that he lives here in the Town of Cortlandt. He works with a firm that does a whole variety of things internationally. What he does is public finance. He works with towns, villages, counties, schools and fire districts, big and small, all throughout New York State. He has done a couple of hundred EFC financings. He is very familiar with the program. He understands what we are talking about. The IUP is a no brainer. Get yourself on a list and see where you fall out. They now have a funding line. When he first started with the program, there was no funding line. You wanted sewer, water, structure work, you got it, subsidized financing through the State. EFC - the Environmental Facilities Corporation - provides a 50 percent subsidy on the interest component, the financing, on the sewage project. You can finance that over 30 years which is the maximum term they have for that right now. If you are eligible for their program while you are constructing the project, you can get a short- term loan at zero percent financing. H commented that you are not going to beat that financing anywhere else in the world. Mr. Myers commented that the other side of the coin is are there is a lot of filing and paper work, as engineers know better than anyone else, that you have to do through EFC. It is sort of an aggravation factor. But the bottom line, the net result to the taxpayer is such substantial savings that if they decide that the project has to be and needs to be done, there is no better way to finance.

Thomas Myers commented on the road project which he has been talking to Village Attorney Porteus about. There is a 15 year period over which you can finance this loan. He thinks he drew up the resolution for $950,000. He saw the cost estimate is about $920,000. He would like to put it to an amount where you might have cushion. If you come in under, you are seeing that now given the economy and conditions out there, there are a lot of people hungry for work you might come in under. That is the maximum. But you only borrow what you need. You go out with the permanent financing when you get the bids out and you know what the final costs are. They ran the calculations over a 15-year period. You are looking at roughly $88,000 a year. On a question from Trustee Murray, Mr. Myers confirmed that he was just talking about roads. Given where interest rates are now, he based the interest rate assumption off a smaller, which means under a million dollars financing. They just finished for the Peekskill School District which got 15 years at 4.10 percent. He ran it off those rates. How long those rates will stay in effect is anybody’s guess. He thinks we are going to see the rates staying at that level for a little while. We have heard from the Feds and a lot of other institutions that rates are going to stay at historic low levels at least until the Spring. We may see some inflationary factors in. If he knew more about this, he would not be here talking to us. There are very historic lows and aggressive construction financing. If you have to do it, this is the best time to finance and to construct. You do not get those two meeting head on head.

Mr. Myers commented that the bond resolution that they prepared, because it provides financing for more than five years, is subject to permissive referendum. If he remembered correctly what the Board wanted to say, it was that they are not going to wait for petitions; that it is important enough that they are going to let the voters decide if we are going to do this. The Board is approaching a period of time, noting that 35 days had been mentioned, for the Westchester County Board of Elections, or whatever assists with the election process. The Board does need to adopt that resolution no later than the middle of September, the statutory period as to when you hold the election. Otherwise, if they delayed or waited to pass it until later, you would have to have to vote at a Special Village Election. You would have to have your own independent election. The timing seems to be working out properly so you can put it on the ballot here in the Village for the vote at the general election in November. One of the issues raised is whether the Village has personal registration. He did not know if the Village has adopted that. If they do, there is a process which would allow the Village to let voters come in and register personally here. They may not be on the County Board of Elections. Trustee Murray advised that we had this. Mr. Myers continued that if we have that, one of the issues that comes up is that they cannot vote on the other propositions that appear on the November ballot. It gets a little cumbersome. Trustee Murray noted that they only have that for Village elections. Mr. Myers noted that this would be at a Special Village Election occurring at the time of the November general election, so you would have to follow the Special Village Elections on this particular bond promise issue. That is, what you are going to have to have, and what he recommends, is to have a paper ballot or some other format. Because if you have a fair number of people who are eligible and do the personal registration here but do not show up on the County Board of Elections list, it is very difficult if you do not have two separate polling places because they can easily come in and vote at the general election because they are on the list as they are registered. The issue is that they are only registering locally but they have not fulfilled the County’s election requirements. It is cumbersome but manageable.

Trustee Murray advised that our elected officials’ terms are up in March. What we do in the Village is that there is one day, one week prior to the Village election, when you can come in and sign up and they are told they are only allowed to vote in that Village election and it does not qualify you to vote for any other offices. So what Mr. Myers was saying is that the Village would have to follow the same policy in the Special Village Election since we do not have any terms of offices up in November.

Trustee Richard wanted to confirm that what that means is those people can only vote on the bond proposition and that is why he is suggesting a paper ballot. Trustee Knickerbocker commented on having a separate voting machine for that. Mr. Myers commented that they could do that but he did not know about the numbers to justify having a separate machine. Trustee Murray commented that since we do not have anybody up for office, you are probably talking about 300 or 400 people. Mr. Myer commented that with the number of people who are not registered with the County maybe being only a handful, it may not be worth the expense to get another machine.

Trustee Murray wanted to know how they would advertise for this. Mr. Myer advised that it would be a form of advertisement that they would provide after the bond resolution. It is a special notice of a Special Village Election to occur at the time of the General Election and they would put forth the bond proposition.

Trustee Murray wanted to know whether this is a fixed interest rate and whether they were locked in. Mr. Myers advised that it is entirely up to the Board. The tradition is, in the bond resolution and the way they have it formed, that the Village Treasurer, and he had background on this, who is the delegated chief fiscal officer to prescribe the term forms. Generally, they hand it over to the chief fiscal officer and tell them to work out the best deal with people like him to make sure they get the best deal. If the market moves in a different way, you might want to issue a bond anticipation note which is a short-term loan. In this market right now, it is about 1 ½ percent. Let the market settle out. You may want to see what the final construction costs are and know what the final number is, then issue bonds. The $88,000 he quoted is based on a fixed rate, 15 year loan at 4.10 percent.

Trustee Murray wanted to know if there were any pre-payment penalties. Mr. Myers responded that there were not any after ten years. Anytime between now and ten years, there is a pre-payment penalty which is fairly stiff. You are basically not going to be able to exercise a pre-payment before ten years.

Trustee Knickerbocker wanted to know, as bond counsel, what are his costs for the Village to apply for this bonding and stay with the roads, as there are questions with the EFC. Mr. Myers responded that he quoted some fees to Village Attorney Porteus and he was not sure. If you are going straight for a bond issue, it is about $4500. The fees are generally a lot more. Mr. Myers commented that the bond issue for the Village is under one million dollars. There are a lot of rules and regulations and filings that they do not have to do with an under one million dollar issue. Both the SEC and State Comptroller’s regulations say it is a small issue. What he is thinking of is that they contact the buyers of municipal bonds in New York State in that range. Mr. Myers commented that is what they just did with Peekskill, Putnam Valley and a few other communities. What they do is they ask for some information, the audited financial statements and the budget, and get a general idea of the credit worthiness. They know the municipalities in New York State do not default. They generally do a risk analysis. They market it to high net worth individuals or local banks and that is basically how you come up with the rate. The fees for under one million dollar issues are much less.

Trustee Knickerbocker wanted to know if there are any other loading fees for the bonds. Mr. Myers advised that there were not. Trustee Knickerbocker wanted to know the rating would be for the Village for the amount of the $88,000 that he gave them. Mr. Myer commented that there was no rating. The rating alone would cost $6,000 or $7,000. Trustee Knickerbocker commented that we are in some uncharted waters. Mr. Myer commented that almost every client of his says that they do not want to go to the rating agencies.

Trustee Knickerbocker commented on the fund for the Wastewater Treatment plant is with the State. They will get the best, the AAA bond rating. Mr. Myers advised that the Village will not need a bond rating. Trustee Murray wanted to know that not even with the $1.4 million they will not. Mr. Myers advised that they will not need a bond rating.

Trustee Knickerbocker commented on whether he had any other information on what their percentage is right now. Mr. Myers commented that the last long-term rate they did through a pooled financing, and they have been doing a couple of those every year, was two a year. One in the Spring and one in the Fall. The Spring was in late July and August and the Fall one is in February. They call it a Spring and a Fall Program. The last they did was at 4.25 net interest rate to the community is 2.125.

Trustee Knickerbocker wanted to know if he could give them the figure at $1.4 million over a 30 year program of what would the payback be on that 2.125, so the Board would have some understanding of what the payback is on that. Mr. Myer advised that he could give them an amortization schedule on how it works. EFC has a finance department. There is an engineering department. He works with legal and finance. They are very helpful with this sort of thing. He started with them when they started the program. It was growing pains. They operate pretty well right now. Trustee Knickerbocker commented that the Board was quite impressed. Mr. Myer commented that they are very cooperative. With the stimulus program, there are a lot of communities that received stimulus funding. They worked very efficiently and got those loans out the door. They are under mandate to make them happen better and quicker for communities.

Mr. Myer wanted to know what the dollar amount was on the sewer project. Trustee Murray advised that it is $1.44 million. Trustee Knickerbocker added that it goes out over 30 years. Mr. Myer commented that they would be using the subsidized rate for the amortization.

Trustee Murray wanted to know if it gets voted down or defeated on the ballot, are there any other options to borrow this money. If you get down below a half million dollars, you do not have to do a bond. Mr. Myers commented that the criteria for whether you go through a permissive referendum is whether you think you can finance it over five years or less. For something over five years or less, there is no permissive referendum requirement which gives you a function of a dollar amount from the taxes and what you think the public will live with. These improvements tend to have long, useful lives. People like to finance it over a longer period of time. Once you go over five years, you go to a permissive referendum. The requirements on permissive is that the Board, as the elected body, decide they are going to do it and if the residents do not like it, bring the petitions. Generally five percent at the last gubernatorial election has to sign the petition to force a vote. Or, as we are doing with the roads, the Board thinks it is important enough and can go right to the voters. It is always the prerogative. You see if the public has a reaction to it and wants to force a ballot issue.

Trustee Murray commented it is a strictly a pay back and does not matter about the monetary value. It is not a dollar amount, which Mr. Myer concurred

Trustee Knickerbocker commented concerning the wastewater with the EFC bond counsel, that the Board would have to work through him to go to EFC to get the bonding all settled. The fee for the roads is $4500. She wanted to know if this was a percentage of the total that he charges for the fee. Trustee Knickerbocker was wondering because that is one of the questions on the applications.

Mr. Myers commented that he tries to work with fixed fees on these smaller transactions. He knows what it takes and what they need. He lives or dies whether he puts more or less time in. He is not going to come back and say he put in more time and needs more money. It is a fixed fee and he lives with it. For the EFC transaction, what he typically provides is a fee quote. They do it in two stages. One is short terms. He commented to envision a line of credit. You have $1.44 million project. Pretty much everything they cover except for land. They provide you a loan. They hold on to the money and as you submit the disbursement requests, they process the disbursement request. You give them the invoices. They do it on a weekly basis. They are very good about that. They send it directly to the vendors and continue to pay the vendor. Each one is its own separate little borrowing because it is $1.44 million. As you near the completion of the project under the finance agreement they have with the Village, they say it is time and they are going to move you into the long term. It is usually the next Spring/Fall thing. They say they have to move you into the program with all the other communities that are in the long term, fixed rate loan. They have a fee for the short-term loan which is usually $1200. Usually for the long-term loan with EFC, it is $4500 which is about the same amount charged for the street program.

Trustee Knickerbocker commented that those are things they need to know for the application.

Trustee Murray wanted to know if Mr. Myers imagined there being a problem with getting this money. Just with the roads alone, it is about 20% of our annual budget. He knows that they work with a lot of other small communities. We have one of the smallest budgets in Westchester County. If we were to have 20% just for the roads and you are talking another 28% or so for the sewage plant, if we were going to take all that money at once, we are looking at 50% of the budget. If the guy is only making $150,000, Trustee Murray did not know if he would throw him $50,000 right away. He wanted to know if Mr. Myers anticipated any difficulty with that. Mr. Myers commented that there will be issues with that. With the institutions that buy the loan, that will be the first thing that will pop up. What is your budget. It is only a few million dollars. It is a big number. Mr. Myers wanted to know what the tax increase is for that. Trustee Murray advised that $88,000 is about 10% or 11% increase. Trustee Knickerbocker commented that it is $13,000 for each percentage, which is four or five percent. Mr. Myers commented that percentages are misleading. He wanted to know what the average tax payer is going to pay. It would be in the range of about $110. Trustee Murray advised that on average, it is around $90. Mr. Myers wanted to know if they anticipate having the roads fixed or not. If the voters approve it, it is not going to be an issue with the lending institution. He commented that it will not be an issue because as a village, your debt is guaranteed by a faith and credit pledge that they have with municipalities. That means you will levy a tax to pay for the program. It is not Detroit. You do not have to worry that everyone is leaving all of a sudden because they cannot pay because they lost their jobs. The bottom line is that it is palatable. The number is not shocking. He commented that it is what it is. Concerning the EFC, they do not have to worry about that aspect because faith and credit, they are going to levy a tax. A court would be mandated to come in and levy the tax for the Village. EFC does not do an extensive grading analysis to the municipalities they provide loans to. There is a direct loan that they call a hardship program with zero percent interest financing for long-term loans for municipalities who meet certain per income per capita and that sort of thing that fits into their criteria. The bottom line is they rely on the State Constitution’s statutes that say you have to levy a tax to pay for this. There is a lot of analysis but at the end of the day, they rely on that. If you were going to have a very big project that is not necessary, he thinks we would have a lot of trouble. They run into that, such as building a hotel which is not a core of the government’s function. People are saying that is not something they are ready to lend money for.

Trustee Murray commented that last year, the General Fund took in $4.9 million and also took in about $3 million in water revenue. The water revenue would probably not have any bearing on it. Mr. Myers commented that not for this project. Trustee Murray commented that not for the sewer plant but maybe because they would dump it back into the sewer plant. Mr. Myers commented that the bottom line is that a rating agency would look at the overall tax burden including schools, County, and Town. Also, what is the overall tax burden for the project and is it raising the taxes to an unsustainable level. He has not seen this in New York but as a New York taxpayer, he is starting to see it. Trustee Murray commented that it would not be for this size project and Mr. Myers agreed.

Mayor Donahue wanted to know, with time being so important, can the Board act tonight on both of these things and move on.

Village Attorney Porteus advised that she prepared a resolution. The Board has to determine, for the Environmental Facilities Corporation who will be the authorized person who will sign the application and who will then be in charge of getting any materials to the agency if they need it. She will plug that in to the resolution. What the resolution basically does is say that you are authorizing the application to be signed by that individual and that individual can follow up and submit whatever else they need to do. They are some questions. They can give the answers and it will be a go by Friday.

Trustee Murray wanted to know whether they Mayor could act as both.

Trustee Knickerbocker commented that there are two. There is municipal contact information and also the consulting engineer.

Village Attorney Porteus advised that she is being told that it should be our Mayor. We will plug him in. We are ready to move on that tonight. We are not ready to move on the roads for tonight. It will be put on for Tuesday. Village Attorney Porteus advised that she will put it all together.

Trustee Murray commented on the submission.

Village Attorney Porteus advised that we are just being put on the list

Mayor Donahue read the Resolution for the Wastewater Treatment Bond.

A MOTION to adopt this Resolution as read was made by Trustee Murray, seconded by Trustee Knickerbocker with all in favor.

Mayor Donahue thanked the Board. He directed Village Attorney Porteus to put the road on the agenda.

A MOTION to put the road issue on the agenda was made by Trustee Richard, seconded by Trustee Murray with all in favor.

Mayor Donahue thanked the Board for their cooperation. He noted that this is very necessary.

At 8:30 PM, a MOTION to close this Special Meeting was made by Trustee Murray, seconded by Trustee Richard with all in favor.