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HomeMy WebLinkAboutLL-1990 #28 LOCAL LAW NO. 28 , 1990 A Local Law in Relation to Sewer Rent BE IT ENACTED by the Town Board of the Town of Southold as follows: Chapter 76 (Sewers) of the Code of the Town of Southold is hereby amended as follows: 1. Section 76-21.A. is hereby amended to read as follows: In addition to any and all other fees and charges provided by law. the owner of a parcel of land served by the sanitary sewer system of the FISD shall pay an annual sewer rent for the use of such sanitary sewer system. which shall be based upon an annual charge of five hundred dollars ($500.) for each separate dwelling unit served by the system. Such annual sewer rents shall be paid in semiannual installments of two hundred fifty dollars ($250.) on the first days of January and June of each, year. ~ II. This Local Law shall take effect upon its filing with the Secretary of State. YS DEPARTMENT OF STATE BUREAU OF STATE RECORDS 162 Washington Avenue Albany, NY 12231-0001 DATE: 12/21/90 REt 'rED DEC ~ 1990 ~'OWII C~rk SOuth~ MUNICIPALITY Town of Southo~u LOCAL LAW(S) NO. I YEAR J FILING DATE 28 & 29 1990 12/14/90 Local Law Acknowledgment [-- Office of the Town Clerk Town of Southold Town Ha11-53095 Main Road Southold, NY 11971 Attention: Judith T. Terry I_ DOS-236 (Rev. 6/90) The above-referenced material was received and filed by this office as indicated. Additional local law filing forms will be forwarded upon request. {Please Use thta Form (or Filing your Local Law with the Secretary o[ State) Text of law should be given as amended. Do not include matter being eliminated and do not use italics or underlining to indicate new matter. N~Ea~yX Southold Local l~w No .... 28 ~! tl~e ~ear ~99.~} ........ In Relation to Sewer Rent A ~ocal law ..................................................................................... (Insert title) Be it enacted by the ............ T..o.w.n...B.o.a..r.d. .............................................. o! the {Name of Legislative Body) Southold as follows: I. Chapter 76 (Sewers) of the Code of the Town of Southold is hereby amended as follows: 1. Section 76-21.A. is hereby amended to read as follows: Ae in addition to any and all other fees and charges provided by law, the owner of a parcel of land served by the sanitary sewer ~ystem of the FISD shall pay an annual sewer rent for the use of such sanitary sewer system, which shall be based upon an annual charge of five hundred dollars ($500.) for each separate dwelling unit served by the system. Such annual sewer rents shall be paid in semiannual installments of two hundred fifty dollars ($250.) on the first days of · January and June of each year. II. This Local Law shall take effect upon its filing with the Secretary of State. (I! additional space is needed, please attach sheets of :he same size as this and number each} (1) (Complete the certification in the paragraph which applies to the filing of this local law and strike out the matter therein which is not appiicabl.e.J {Final adoption by local legislative body only.) I hereby certify that thc local law annexed hereto, designated as local law No. 2.8. ...... of 199.0. ...... ~O~][q Town Board ~t~ Southold was duly passed by the ......................................... of the Town of ................ (~ameot Legislative Body} on....D. ~e.c..e..m..b..e.r....1). ....... 19.9.9.....' in accordance with the applicable provisions o f law. 2. (Passage. by lOCal legislative body with approval or 'no disapproval by Elective Chief Executive Officer,* or repassage afterdisapprovai.) I hereby certify that thc local law annexed hereto, designated as local law No ..........of 19 ........ County -. _. City ....... ............. ' ' (Nameof Legislative Body) o[ t~e Town of ... was duly passed by the .......... ' · -- .................... Village not disapproved on ............................. 19 ........ and was approved by the ............................ repassed after disapproval £1ective Chief Executive Officer* and was deemed duly adopted on .................................. 19 ....... :, in accordance with the applicable provisions of law. . - (Final adoption by referendum.) I hereby certify that the local law annexed hereto, designated as local law No ......... of 19 ......- County _. City .......... ottl~e Town of .. was duly passed by the ............................... .............. (Name.of Legislative Body) Village not disapproved on ............................. 19 ........ and was approved by the ............................ repassed after disapproval Elective Chief Executive Officer* on 19 .......... Such local law was submitted to the people by reason of a mandatory referendum, and received the affirmative vote of a majority of the qualified electors voting permissive general thereon at the special election held on .............................19 ......... in accordance with the applicable annual provisions of law. -4. (Subject to permissive referendum, and final adoption because no valid petition filed requesting referendum.) I hereby certify that the local law annexed hereto, designated as local law No ......... of 19 ........ County ' h City ................................... o! t e Town of ................ was duly passed by the ...... (Name of Legislative Body) Village not disapproved on ............................. 19 ........ and was approved by the ............................ repassed a_ fter disapproval Elective Chief Executive Officer* on 19 .......... Such local law being subject to a permissive referendum and no valid petition requesting such referendum having been filed, said local law was deemed duly adopted on ............................. I9 ......... in accorclance with the applicable provisions of law. *Elective Chief Executive Officer means or includes the chief executive officer o! a county elected on a coenty-wide basis or, il there be none. the chairman of the county legislative body, the mayor ol a city or village or the supervisor o! a town where such officer is v~ted with power to approve or veto local laws or ordinances. (2) (City local law concerning Charter revision proposed by petition.) I hereby certify that thc local law annexed hereto, designated as local law Ho ......... of 19 ........ of the City of ................................. having been submitted to referendum p=rsuant to the provisions of 37 of the Municipal Home Rule Law, and having received the affirmative vote of a special, majority of the qualified electors of such city voting thereon at the general election held on ............ ............ 19 ......... became operative. (County local law concerning adoption o! Charter.) I hereby'certify that the local law annexed hereto, designated as local law No...2.8 ..... of I.~?.-0 ...... of the Count~ of . .S.u..ff.o.l?..,, .......... State of New Yolk, having been submitted to the Electors at the General ElectiOn of November ....7.t.h. ...... 19.~.9.,., pursuant to subdivisions 5 and 7 of section 33 of the Municipal HomeRule Law, and' having received the affirmative vote of a majority of the qualified electors of the cities of said county as a unit and of a majority of the qualified electors of the towns of said county considered as a unit voting at said general election, became operative. (If any other authorized form of final adoption has been followed, please provide .an appropriate certifica- tion.) I further certify that I have compared the preceding local law with the original on file in this office and 'that the same is a correct transcript therefrom and of the whole of such original local law, and was finally adopted in the manner indicated in paragraph .... 3. ....... above. Date: December 12, 1990 Judith T. Terry, Town Clerk ;! (Seal) (Certification to be executed by County Attorney, Corporation Counsel, Town Attorney, Village Attorney or other authorized Attorney of locality.} - STATE OF NEW YORK COUNTY OF ...S..U..F..I...O..L..K. ................. I, the undersigned, hereby certify that the foregoin~ local law contains the correct text and that all proper proceedings have been had or taken for the enactlme~ of t~l l]gal law annexed he~, · M/att(aew G. Kiernan~Tssistant Town Attorney Title Date: December 12, 1990 -. ~:rX Town PUBLIC HEARING SOUTHOLD TOWN BOARD November 13, 1990 8:02 P.M. IN THE MATTER OF A PROPOSED "LOCAL LAW IN RELATION TO SEWER RENT". Present: Supervisor Scott L. Harris Justice Raymond W. Edwards Councilman George L. Penny IV Councilwoman Ruth D. Oliva Councilwoman Ellen M. Latson Councilman Thomas H. Wickham Town Clerk Judith T. Terry Town Attorney Harvey A. Arnoff SUPERVISOR HARRIS: The second public hearing for the evening is on proposed "Local Law in Relation to Sewer Rent". Judge Edwards will read the legal notice. JUSTICE EDWARDS: "Public Notice is hereby given that there has been presented to the Town Board of the Town of Southold, Suffolk County, New York, on the 10th day of October, 1990, a Local law entitled, "A Local law in Relation to Sewer Rent". Notice is further given that the Town Board of the Town of Southold will hold a public hearing on the aforesaid Local Law at the Southold Town Hall, Main Road, Southold, New York, on the 13th day of November, 1990, at 8:02 o'clock P.M., at which time all interested persons will be heard. This proposed "Local Law in Relation to Sewer Rent" reads as follows: BE IT ENACTED by the Town Board of the Town of Southold as follows: I. Chapter 76 (Sewers) of the Code of the Town of Southold is hereby amended as follows: I. Section 76-21.A. is hereby amended to read as follows: A. In addition to any and all other fees and charges provided by law, the owner of a parcel of land served by the sanitary sewer system of the FISD shall pay an annual sewer rent for the use of such sanitary sewer system, which shall be based upon an annual charge of five hundred dollars ($500.) for each separate dwelling unit served by the system. Such annual sewer rents shall be paid in semiannual installments of two hundred fifty dollars {$250.) on the first days of January and June of each year. II. This Local law shall take effect upon its filing with the Secretary of State. Copies of this Local Law are available in the Office of the Town Clerk to any interested person during business hours. Dated: October 10, 1990. Judith T. Terry, Southold Town Clerk." I have proof of publication on the Town Clerk's Bulletin Board, proof of publication in The Suffolk Times, proof of publication in The Long Island Traveler-Watchman, and I have several letters, quite a few that I will read them into the record. Dear Mrs. Terry, We can not find it possible to attend this hearing in the Town of Southold, to express our opinion. We can't afford the expenses involved to appear personally. It would have been more Pg 2 - PH LL Sewer Rent convenient had it been held on Fishers Island. Our sentiments are the same as our neighbors, who are involved. We believe this increase of $500.00 is ex~obitant, especially at a time when our property reassessment tri~o~l~l, on top of high increase of utilities. We feel that a lower tax per year would be more acceptable. As senior citizens with fixed income we would favor a lower tax assessment over an extended time period. Signed, Steven Morell and Ann Morell. November 13th, 1990. Dear members of the Town Board of Southold. As members of the Fishers Island Sewer District, we wish to make a few comments for the public record, regarding the planned rate increase for sewer district users, and other related Town Board activities. First, we think it is important for the Town Board to realize that many of the users of the Fishers Island Sewer District are year round island residents who can ill afford such a dramatic rate increase. With property tax assessments also doubling this year, you are wreaking havoc on our efforts to budget our limited financial resources. While we realize the Town has been bailing out the sewer district and needs these monies returned, has the Town Board considered all financing options? Certainly some type of bond could be issued to softer the blow by spreading the costs of getting the district back in the black over a number of years. Second, we cannot believe that the public hearing for such an important local issue is not being held here on the island, or at a minimum that we are not hooked up through a telecommunications effort of some kind. We moved to Fishers Island from Alaska where only 20 of the 200 plus communities in the state are on road system and all but a dozen communities are at least 300 miles from the State capital. Public hearings, if not held in the community were always "hooked up" and open for comments from members of the affected communities while they actually were occurring. We know from experience that the technology now exists for better representation than we now receive. Third, in a recent letter from Town Justice Raymond Edwards to users of the sewer district he states that "it was recom- mended over a year and a half ago that the users of the District form a committee to oversee the systems operation, but this thought feel on deaf ears". In our opinion, as the Town Board currently acts as sewer district commissioners, any rate increase should be tied to the establishment of such a committee. Finally, there has been a lot of finger pointing recently among the Town Board, the engineers, the island contractor and sewer district users regarding who is responsible for the District's current problems. In our opinion all parties are guilty and it will require that all parties work together if the problems are to be resolved. Thank you for your time and consideration on these matters. David and Ann Burnham, Fishers Island. November 6, 1990. Dear Mr. Harris, It is with deep regret that we are users of the Fishers Island Sewer District. Our home just happens to be in the Fort area, and we just happen to feel we've definitely been taken advantage of. We understand that the Sewer District was formed under the guidance of Mr. Rutherfurd. F.I.D.C.O. commissioned Mr. Rutherfurd to create the district, but the district formation was based on Southold Town Law. The Town has accepted a system which was technically faulty, they've allowed it to be burdened by non- district septage, and they've failed to supervise it in terms of operational costs and procedures. We can't imagine that any operation within the Town of Southold proper would be handled in such an improbable manner. Most homeowners within the Sewer District on Fishers Island are working class citizens or retirees on fixed incomes. They do not have the monetary means to continue unforeseen increases upon increases. We all pay taxes and have real needs like real people. We will not be the forgotton, just because we live on an island, and we do not want to be told that we must take over a project that was misdirected by the Town, in the first place. We would like to go on record as stating that the cost burden for the Fishers Island Sewer District shoul fall on the Town of Southold. Sincerely, Jane M. Lamb, Lewis O. Lamb. November 7, 1990. Dear Mrs. Terry, I was appalled Pg 3 - PH LL Sewer Rent when I received the notice of October 10, 1990 dealing with proposed increase in "Sewer Rent". I find it difficult to believe that a project that was studied to death, and cost such a great deal of money works so poorly. At the time of the hearings regarding the system, we the residents of the area, were advised that the annual maintenance costs would be minimal. A cost of $150 per year might be considered minimal, but under no circumstances is a charge of $500. I do not know if I was deceived by the consultants, the system was poorly designed and/or constructed, or the expenditures are out of control. Some explanation is needed to clarify this situation. I believe the system should be made to operate in the manner and costs as outlined at the hearings held prior to its construction. The cost of these modifi- cations should be borne by the contractors or the town if it accepted a system that did not meet the specifications of the job. Very truly yours, Martin J. Scott. November 2, 1990, addressed to Judy T. Terry. Dear Madam: You are asking for rent increases for the use of the sewer system on Fishers Island. I strongly object to the approach being made by the Town Board. No attempt has been made to rectify the underlying problems of the system. I suggest the town council should sue the firms or people concerned for not building, planning and foreseeing the proper construction of an adequate system to take care of the needs of a small district. Rent increase is not the solution. Sincerely, Roger Barmache. October 31, 1990. Dear Mrs. Terry, I received the notice regarding a substantial permanent increase in the sewer use charge for our Fort Wright area home on Fishers Island. Several of us have been concerned about the perceived mismanagement of the district practically from its inception. We are in a terrible and unfair position. I do not claim to be an expert in this process, but my instincts and common sense suggest an out of control situation. There has been no discipline in the management of the district and the expense controls have been non-existent. I am disturbed about the lack of replies to letters written by several of us and the mixed signals we have received from some Town Board members and others. I hope you appreciate this is not directed at you personally, but in your capacity as the bearer of the bad news. Sincerely, Peter K. Burr. So endeth the reading. SUPERVISOR HARRIS: Thank you, Judge. Any members of the audience like to address the Town Board on this Local Law change? GEORGE ESSER: My name is George Esser, and I'm a resident of Fishers Island, and also a user of the system. I think it's got to be quite clear to the Board members that everyone is upset about this rent increase. We have letters. There are only sixty some users, actually a lot of them are multi-users, when you talk about the individuals involved, there are probably forty or so. You have letters from, I don't know, about ten people here, and I've come a long way just to state my objections. What we have is something that is actually pretty simple. I mean, it's a pretty basic sewer system. The sewage flows down hill. It's collected into a tank, a pump pumps into a field, and in case the electricity goes off, there's an emergency generator, that's on standby, that goes on to pump the fluid. I mean it's that simple, and we've had the situation in the past three years, when it was new, or fairly new, where it was costing something like six, seven, eight thousand dollars. As a matter of fact, the letter from the engineers to the Town at the beginning of this year, stated that there was a surplus going into the '89, '90 season of $3,000. Now all of a sudden, within the course of a year, from having surplus, you're estimates to us is that we need a budget of $29,000.00 for a system. There's a huge, huge gap here, and obviously a lot of people are upset. I think the common theme in each one of those letters is, why? We haven't heard a word of explanation from anybody, who claims to be confident about the system, and why it is either faulty, or needs repair, or what's going on. So, what we're really upset about are, you know the deaf ears..nobody talking back to us, who are users. Pg ~ - PH LL Sewer Rent All we're getting are bills. We're getting assessments. First it was $150, then it was $175, and now it's $500.00? I don't think anyone of you can sit there, and be happily pay $500.00 a year to flush your toilets, and that's what we're paying. This is ridiculous. It's a simple system. Now, you have engineers. I don't know why they're not here. I don't know why they're not invited. I don't know why they haven't been consulted, and I don't think they have. Have you consulted the engineers with coming up with the estimate for this year? JUSTICE EDWARDS: Yes, I have. I spoke with Mike Horne. GEORGE ESSER: You know, this morning on the phone Mike Horne said, he hasn't heard from you. He had no idea, that there was a hearing today. JUSTICE EDWARDS: He had no idea there was a hearing, but I did speak with Mike Horne regarding the cost of the system. GEORGE ESSER: We're looking for the answers, and I'd these to be in the record, because I want some answers, and we should have some answers. What are the procedures for (tape change) We have purchase orders for things, when you purchase equipment, or will you have contracts out for bid. Is there such a thing when you purchase equipment? We'd like to know what they are. Were these estimates based on some kind of an engineering study? Did the engineers have input when you say you need a budget of $29,000.00 for this year? What is the process for hiring the contractors, the people who are repairing these things? It would make sense, that then you have, you know, if there's an expenditure that's over $300.00 or $500.00, that you talk to the engineers. You know, I've informally checked and chatted with them, and they say, no, and then all of a sudden there's bill~ and all of sudden there's something going on, and you know, you're getting stuck with the bills, and you know, and you have to pay them, and you iust turn around and hand them to us to pay. So that's pretty unfair, the way we see it. What is the plan for the future? What is the plan openly to repair this thing? We don't understand if anybody's looked at how we get to a permanent solution, where this thing should be running e~t~ciently, instead of charg- ing $30,000.00 in a kind of an open book in a surplus fund, so that a contractor can come in, and charge what ever he wants. What we're looking for is efficiency. We don't want to spend a lot of money on this thing. We want somebody to say, you know, if was done this way we could do it very cheaply, but we don't hear that. The question, and I think why everyone is upset, is it's a question of a stewardship. It's a question of it's our money, and we're giving to the town, and we just expect, and can anticipate a much better treatment, instead of just passing on bills, with us hearing it's cost another $1,000.00. No sympathy, no response, no sense of responsibility, and that's what has us upset, and we'd like to get some answers. We'd like to have..and again I pointed out in the beginning, that we have a simple system. We are reasonable people. We know things can go wrong, but to jump from $175.00 to something in one year, to $500.00 without any real justification is what gripes the users of the system, and we really expect more from the Board in the Town, and from the Commissioners, and you are the Commis- sioners for this district. COUNCILMAN PENNY: I can't address exactly the figures dollar for dollar, because I don't have the notes here, that we had in budget work session, but the costs of running the system this year far exceeded what they have in prior years. I believe actual expenses in 1989..1988 the actual expenses were $8,600.00, which left a surplus. We had actual expenses this year of $14,000., and we also had some surprise revenues, which helped offset some of the addition. Pg 5 - PH LL Sewer Rent GEORGE ESSER: That's another issue, but we won't go into that. That was where the Town under an emergency basis authorized the use of that system for outside septic to be dumped into it, which was against the recommendation of the engineers, it was against all good judgement. You had your view, that you had no other choice, but we'll just leave that. I don't want to go into that. I want to stay on the subject of getting this thing resolved. I presume that that's not going to happen again. COUNCILMAN PENNY: Accomodations have been made elsewhere. It was an emer- gency situation, and the Board as Commisioners dealt with it. The people on Fishers Island, the responsibility to the total area of Fishers Island, our responsibility as Councilman, which is single and separate from our responsibility to the Fishers Island Sewer District as Commissioners, so we weighed the situation out, and actually there was a benefit for revenues. In 1990, the expenses went up to $15,000, and we're anticipating a surplus...l'm sorry a deficit by the end of the year, which means that the expenses are going to go up to about $18,000. We felt that if we were to take..we tried several ways to work it out with handling this financially, and every recommendation that we got back from Albany, after many phone calls to the Comptroller's Office made by our Accounting Department, told us basically that we couldn't do a lot of the things we would have liked to do, that was to spread this out over a great period of time. We had requests from Fishers Island residents, that rather than raising the annual fee to them, that we give them a one time additional bill, a one time catch up bill, which we researched in our..it would have taken a Town Code change to do that. This $500. bill, which you're getting this year, we hope is a one time bill to accomodate the shortfall, next year's expenses and the shortfall, that is already in this year's system, plus allowing extra so that it doesn't happen again. We're hoping this is a one time adjustment. We had nothing to deal with in this particular case except the simple mathmatics of it. You can't put off paying the bills on a district. We can't fund this district from Whole Town charges, as has been suggested. A district has to operate singularly, and separately on it's own, and we felt that rather than to go through and try to change a merriot of things at the very last minute, that this was the only way we could deal with it at this time, and that was the decision we had to make, and we're not happy with it. The financial ramifications of this are intense. We agree with you there, but we're looking at this as a one time adjustment, and that anything that happens in the future we would hope would be on a reduced course basis, but we have to pick up the deficit from this year, and hope that there's not going to be that same deficit next year, so I believe we allowed half of that amount, that we were short in 1990, against 1991, just to cover some overages. We did it very conservatively, and there's where the numbers are. It's strictly numbers. GEORGE ESSER:: I would say, that you're estimating, if I see in the records, that you're estimating the expenses of $20,000, again, for next year. What's the basis of that? If we've had an experience for the past four years of under $10,000. we have one year, this year, where they were, for some reason, which no one has given, we have not, you know, officially gotten anything from the commissioners as to why those expenditures are over $10,000., but... COUNCILMAN PENNY: I wish you wouldn't, because you're probably not familar with the operating expenses. JUSTICE EDWARDS: With the expenses of the system, everything was going good until around '87,'88, and then I saw where the surplus that the district was carrying was starting to go backwards for various reasons, a few little minor things at the generator shack, plus the increase cost in energy, and then I suggested to raise the rates to $175., which was done. Pg 6 - PH LL Sewer Ren~ GEORGE ESSER: I can't time it exactly here, but..well, here on page 1, January 30th, where the engineers quote the electrical cost that continued to decrease. JUSTICE EDWARDS: That's not true. Also, you have to consider that Lombardi and Associates, that do that financial there, they work from June 30 until June 30, whereas we work on a fiscal year from January 1. Let me go on into the pro- blem, that encouraged in the system. In '89 there was a lightning hit down there at the plant, which cost pretty close to $2,000. to get the printed circuit board changed in the generator control panal. Then they had problems with the generator, and the bill from the generator people was about $1,500. GEORGE ESSER: Can I stop you right there for a second? Again, I'm only quoting from what I hear informally with the engineer this morning. He said after that, he went over to inspect the generator, after it was repaired, and he found out it was not hooked up. This is the competence that we deal with on the island. JUSTICE EDWARDS; All right, let me just continue on. I agree with you there. Then we some people come in because the check dials, the engineer said that the check dials were not working. The check dial people came down from Massachusetts, and replaced the seats on the valves, and that was an added expense, and of course, you know last year we had the problem at the tennis court, which was unforeseen by all of us, and that was about a $1,500, $2,000. repair, and no one knew that was there, not even the engineers. So, we're trying to straighten this out, and by putting this surcharge on..not a surcharge, but raising the rent to $500.00 for next year, this should get us back on track, but it's like any other piece of electro mechanical equipment. It's not going to last forever, and it takes work. You have to fine tune it. Just last week, they lost a hundred amp fuse on the three phase coming into the system, and there was a call out, and the fellow had to go out the next morning, the generator man, for about five hours until the electricity...get the power company in there to find this bad fuse, and this we haven't even seen a bill on yet. These are the things that happen. End of story. I'm sorry, George. GEORGE ESSER: It's a pretty bad year for these things to happen. To get back to the basis, it's a simple system. These pumps should work five to twenty years without much maintenance. The generator should work five year, twenty years, something like that, like a refrigerator. I mean, it's not that complicated. Now, we understand certain things, certainly is the case you pointed out there was something unforeseen were they had to dig up the pipe, that they didn't know was there. Fine. I mean that's $1,500. That's not an increase of $10,000. Can we see justification of that? Aren't we, who have to pay for this, aren't we entitled to some kind of documents, that say this is what the operations and maintenance cost of this district are? This is what we had to spend the money on. This is what we plan to do, so we don't have to go through this in the future. I mean, if we had that kind of leadership, and documentation, you probably wouldn't have a dozen letters coming, and we'd say, okay, that make sense. Sounds like the commissioners are on the ball here. They're doing something for us, but just getting a bill in the mail, I mean is an awful thing. With no justification for it, except sorry, you guys are... COUNCILMAN PENNY: Did you get the summary? Our Town Clerk told us, that she sent out the summary of revenue and expenses. GEORGE ESSER: That doesn't justify. It has for next year an estimate of $40,000. What is that for? If we've been running for four years, basically on $10,000, what are you going to spend the $20,000 on next year? Pg 7 - PH LL Sewer Rent COUNCILMAN PEN NY: Part of it is to make up the eighty seven seventy one twenty three deficit from '90, and then we allowed expenses of $20,000. for this year, and we should have, if the expenses are $20,000. at the end of next year, you'd have $728.77 left over. If they're $15,000. then you'd have $5,700. left over. GEORGE ESSER: No expenses in the past, I'm saying, have been $10,000, not $20,000.00 COUNCILMAN PENNY: If you look in '89 and '90, you'll find out that's not true anymore. GEORGE ESSER: The Judge iust said that those were extraordi~ry. Those happened this year. COUNCILMAN PENNY: If it was extraordinary,your surplus will larger, and the following year we'll be able to reduce it, again, but we don't know if they're extraordinary. We don't know for sure, and we put in a cushion of approximately $5,000., but that was all. JUSTICE EDWARDS: I suggest you call up Mike Horne, because Mike Horne is saying that the impellers and the pumps have to be replaced, and this is normal wear and tear, and you can, also, check with Mike Horne, and find out what the life expectancy are. GEORGE ESSER: I talked to Mike Horne about that, and I, also, found out that because you the system had to be repaired the engineers made the recommendation last summer, that sooner or later, those inloellers have to be replaced. There was some other kind of repair, that had to go on. They pulled the pump. I'm sorry, that this is so boring to you, Mr. Harris. SUPERVISOR HARRIS: What I'm talking to the Town Clerk about is the fact, that we as Commissioners have hired a man by the name of Mr. Gata to oversee that project for us on a daily basis, and we respect his opinion. We get bills from him on a daily basis, or a monthly basis. Some of bills we've received we couldn't even pay yet this year, because the money isn't there. We just had to put money into the district just to carry it through until we get you on a double basis, twice a year, and what I was saying to the Town Clerk is, when this came up during the budget process, starting in September, and all along we've been seeing that this place is running in the deficit apparently at some t~me, a year or two ago, the suggestion was made that the Commissioners put at least one or two people on from Fishers Island to help oversee the district, those users. What I'd like to see happen is that the Town Board get out of being the Commissioners, because of the problems that exist, and not trying to duck the issue, but because weld like to put it into the laps of people, who see it on a daily basis, and use it, and it would legislation through Albany, that would have to take place in order for us to relieve ourself as Commissioners, and put Commissioners in such as yourself, and others, who are willing to take on that responsibility to oversee that district, and make sure it's running, the way you would like to see it run. That is a possi- bility, and I would certainly like to work on that with you, and other members, the other 59 or 60 users, that are effected by this sewer district on Fishers Island. I think that may be the way to go for all of us, so that you have direct hands on operation at all times, and when bills come in, which we rely on, of course, Mr. Gata~ and the Judge to rectify and verify for us, that in fact they're legitimate, and it's billing. We do have, in fact, that purpose for you to now avail yourself, say, okay, now, we have the billing direct, and that's what I'd like to see happen. Pg 8 - PH LL Sewer Rent GEORGE ESSER: I think going in that direction makes sense for the future, but I can tell you, I don't think you'll find many Commissioners on the Island right now, to take that responsibility, until they I~ave a system, that is backed up to snuff, and it is operationing, and it'si~itial integrity. They're not going to take a lemon off the hands of the existing Sewer District Commissioners. With regard to the contractors, you know, you're not there, and I hear different stories about the maintenance, so you know, the point I was trying to make before was when the contractors pulled the pump, the engineers had notified everyone that they were going to have to change these impellers. If the pump is pulled, it would have been ideal time to do it, but the engineers were not consulted, so therefore, we now face this year, because of pulling out those pumps again, just to put in the impellers, when it could have been done at one time, during the summer, saving us a couple of thousand dollars. I tt~ink that's the kind of attention, that we would expect. I, also, have heard, I will say that this is hearsay, but I have heard that the spare parts, that have come with this equipment in the beginning, are lost. Nobody knows where they are. I mean, I think it's a very slipshod operation, that's been going on there, and I think you have a long way to go to reinstate the confidence of the users. That's not our job. I think it's your job, as Commissioners. I think I made the point I want to make, but what are the answers to those questions, Mrs. Terry? In particular, I would really like to know how these bills are signed off. Is there a contract? How is that approved? TOWN CLERK TERRY: There is no contract. GEORGE ESSER: There is no contract, so we don't even know whether he's properly licensed, for example. I'm not questioning that he is, but.. SUPERVISOR HARRIS: Maybe, the Judge can answer that question for you. JUSTICE EDWARDS: What was contact, George? Mr. Gada , is he qualified? Properly licensed? Yes. GEORGE ESSER: I presume he is. JUSTICE EDWARDS: The only license you need, really, on that system, is an electrical license if you're going to get into the panel board, and he has been grand- fathered in with an electrical license. Now, Lombardi Associates have a yearly contract with the sewer district to maintain the system, and do periodic checks of these overall system operations. It's a yearly contract, $1,700, I believe it is. GEORGE ESSER: And what's the buil~e~'to do? Is there any process to get a work order in advance, or just..? JUSTICE EDWARDS: No. GEORGE ESSER: And once the bills are submitted, then who approves them? JUSTICE EDWARDS: Usually they come to me. GEORGE ESSER: Then you initial them, or sign them? JUSTICE EDWARDS: The past three months I've held back on it, because they've been out of control. I realize they're out of control. I talk with Mike Horne once a week on these bills. I suggested for Mr. Ga~, that they could go directly to Mike Horne. Pg 9 - PH LL Sewer Rent GEORGE ESSER: Do we have any plans for outlining the expenditures, where the money is going other than these past ones? JUSTICE EDWARDS: Oh yes, I mean, you call up John Cushman at the Accounting Office, and he could tell you every bill, that was paid. GEORGE ESSER: I'm talking about the future. JUSTICE EDWARDS: It's there. Every bill that's paid, it's on a ledger as to how much, and who it went to. GEORGE ESSER: Well, once again, I'm talking about the expenditures in 1991. The plans for repairing this thing, so this doesn't happen again. JUSTICE EDWARDS: Well, I'm not going to stick my neck out, and say it's not going to happen again, because there's a lot of little quirks in that sysem, that are going to come up, George. You can not fix it once and for all. I'd love to be able to wave a magic wand, and say, there, you're all set, but something is going to happen. One of the motors is going to go. One of the valves is going to go. GEORGE ESSER: Why can't the rents be increased, say $250? I mean, it's a semi- annual anyway, and that at the end of the six months, say, all right it looks like we'll need another $250. You know, what you have here in this ordinance, is it's going to $500.00 for ever and ever. JUSTICE EDWARDS: No, but that is going to be changed. The $500. is put in there.. GEORGE ESSER: Then say it's going to be changed. JUSTICE EDWARDS: You were here for Resolution #1 today, when the Town loaned the District $10,000. to get it out of the holet and when that money is paid back to the Town with your $250.00, which is due by the first of January, it should get the system back on line, again, and if when the second $250. comes in the first of June, if there's enough of a surplus at the end of the year to carry into '92, then the $500. will drop back to $250. We're not going to carry a $25,000. $50,000 surplus in there. We'll have another hearing just this at the end of '91. GEORGE ESSER: Why codify into a $500. bill, why not just say it will be $500. for this year, and next year we'll go back to $250.? Why not state it that way? Then we have another year. JUSTICE EDWARDS: We have to see at the end of '91, what the system budget looks like, and the contingency looks like. GEORGE ESSER: I'd like to know what the system budget is for this year, let alone next year. JUSTICE EDWARDS: I'd like to know what it's going to be at the end of '91. COUNCILMAN PENNY: We budgeted for expenses $20,000. against $15,700., that was spent this year, and we allowed a few dollars for contingency problems. GEORGE ESSER: We don't want surplus. There's no need for surplus. Pg 10 - PH LL Sewer Ret' COUNCILMAN PENNY: We're not sure we're going to run a surplus. GEORGE ESSER;:: So why not when we get to half way through the year, charge the $250. more? COUNCILMAN PENNY: We budget on an annual basis. If you want us to take $4,000. out of here, what is that effect going to be on people? How many users to eat up the $4,000? Is there going to enough money, that people are going to relieved? GEORGE ESSER : I think so. COUNCILMAN PENNY: I don't know. How many users are there, sixty? TOWN CLERK TERRY: Fifty-nine. COUNCILMAN PENNY: You get a bill for $425., you get a bill $500. with the feeling that it may go down in the following year, if there,s: money not spent. I think that's a lot safer, than if we turn around and tell you it's going to be $425., and then at the end of the year we ran out of money, again. It's normal to carry surpluses about $2,400 and $3,000., because that's what we were carrying up to '87 and '88. We're not asking to do anymore than that. You said you don't see us carry surpluses, yet it's surpluses that have carried in prior years, and there was never a question about them. We're trying to return us to that same surplus situation, so that we continue normally after one period of adjustment, and that's what a lot of the people of Fishers Island said, they would rather have a one time bill, and then know that things might get back down to normal, again, and that's what we're hoping for. GEORGE ESSER: We had a surplus when we're paying a $150., and now all of a sudden we don't have a surplus, where we have to pay $500. COUNCILMAN PENNY: We have problems, we didn't have before. This is all mechanical. GEORGE ESSER: The suggestion is, pay the one time to catch up, tell us what it is, tell us why it has to be, and then if you need more money, another $100.00 for another year to build up something for repairs that was planned, let us know. I think the people would say, okay, that makes sense, but what we're seeing are bills with no justification in the past, or anticipated. SUPERVISOR HARRIS: Mr. Esser, if you would I can certainly get a copy of the bills, that this town has received this year, make them available to you, so you can actually see all the expenses, that have occurred for all the system failure throughout 1990. That would be very easy to do. I guess you have your address on here. We'll be glad to send you all those bills, so you can see in fact what has transpired, and what has been paid out. GEORGE ESSER: I'll get back to this. It's a simple system. I mean, lightning strikes. Fine. We understand that, but it should go back to $150. or $175. to operate this thing. It really is only the electricity, and some minor maintenance, and the way this is written the charges for ever and ever $500. COUNCILMAN PENNY: It is not our intention to charge you for ever and ever $500. Pg I1 - PH LL Sewer Rent GEORGE ESS, ER: Then why don't you state it that way? COUNCILMAN PENNY: We can't, because this is done by Local Law, and we didn't set it up. Vie inherited this. We could charge a fee at any annual basis, if it wasn't done by Local Law. If the Local Law said that the Town Board shall establish the fee, and we wouldn't have to go through this. We could send you a little letter, that said, okay, this year it's going to be exactly what you want. But the procedure, that we have inherited says that we have to change the fee, to charge the fee, by Local Law. Everytime you want to change it to make it more, or less, we have to change the Local Law to do it. We didn't create this system. We inherited it. SUPERVISOR HARRIS: Also, Mr. Esser, another suggestion possibly may be to have a, this is now a taxing district, and it certainly could be a taxing district. Again, it would be enabling legislation to do so, but that way whatever the budget is divided automatically on your tax bill, and you just put that out in your taxes rather than a two bill system. It may not be much different than you have now, however, it's based on what is needed and that's what the district has to raise. You do get to write it off your taxes, where possibly now you don't because you get a bill just for operating a sewer plant. That may be another move that we can make in that direction, but again, I would still like to see members on Fishers Island involved as the Commissioners over there. I don't think there's any member here, that is going to have it's feelings hurt to have you look over that district, and see the problems, that arise on a weekly or monthly basis, and the bills, that follow it. None of this has been contrived. It certainly isn't being made up. Everything here is factual. It's a budgetery process. The Town, as you heard Judge Edwards say, has to actually loan your district $10,000. this year just to help pay for some of those bills, which we will actually pay back to ourself, when that first payment is received. These things come through. If you feel, that the bills are, for some reason, improperly being charged to the district, I'd certainly be glad to solicit your comments on that, once you receive all the documentation, that I will send you. GEORGE ESSER: I don't feel particularly competent in iudging those bills, I mean, I don't do that. In my own business I do, lout in terms of these kinds of repairs, I would think that's the job of the Commissioners, and I'm not so sure that I...I mean I'd be happy to look at them, but I don't whether I could make those kinds of judgements. I mean, obviously, they had to be repaired, but it seems that there's not much checks and balance going on. That's my impression, and I am particularly distressed that the firm, that the engineers, that have been hired for this, whom you hired for competence in this area, are not consulted regularly before major expenditures are entered into it. That, I think, is a real serious problem. Can you give me any satisfaction, that that will change? JUDGE EDWARDS: I think the engineers knew about the check valves. They're the ones that suggested that the check valves be repaired, and adjusted. That was a big bill, and I think in talking with Mike Horne of the engineers, we decided that we would not go to the firm in Massachusetts the next time, because of the exorbitant amount of money, that they charged us. Now, Mike Horne knew about these check valves. He was the one that suggested that they be tuned up. Well, regarding the generator, it was Mr. Ga01a that called up the generator people, and said the generator wasn't working. Now, Mr. Gada goes there once a week, and runs that generator for fifteen minutes to make sure that it's up to snuff, and he doesn't have a contract for that. I don't think you'd find anyone on Fishers Island, that's more capable, with the manpower, that they have to maintain the system like Mr. Gada is doing it. I don't think there's anyone on the Island that knows the system as well, and to put that out to bid, it would be a foolish thing Pg 12 - PM LL Sewer Rent to do, because the person that's going to underbid Ga la , if they did, is going to have to start from scratch, and it's going to cost you a hell of a lot more money. SUPERVISOR HARRIS: We appreciate your comments, Mr. Esser, and we appreciate the fact that you came over here. This Town Board purposely put this public hearing on much later on, than regularly it was scheduled, which was about a month ago, just so we could solicit comments, and get input from the users of Fishers Island District. GEORGE ESSER: I think, just returning to that point, I think it might be useful, and again, we may be wrong, or you say we're foolish for suggesting that this go out to bid with other contractors, but I think you might satisfy an irate con- stituency by going through that process. SUPERVISOR HARRIS: Thank you. Is there any other member of the audience, that would like to comment on this Local Law change? (No response.) We'll declare this public hearing closed. Judith T. Terry Southold Town Clerk PUBLISHER'S CERTIFICATE State of Connecticut ) County of New London, ) ss. New London LEGAL Town of Southo d Notice of Public Hearing On this 16th day of Novomber A.D. 1990, personally appeared before the undersigned, a Notary Public, within and for said Gounty and State, J. L. Zielinski, Legal Adv. Clerk of THE DAY, a daily newspaper published at New London, County of New London, State of Connecticut, who being duly sworn, states on oath, that the Order of Notice in the case of Legal Adv. 216 a true copy of which is hereunto annexed, was published in said newspaper in its issues of the 1st days of November A.D. 19 90 Subscribed and sw~ t ore me this 16th day of November A.D. 19 90- Notary Public. COUNTY OF SUFFOLK ss: STATE OF NEW YORK LEGAL NOTICE NOTICE OF PUBLIC HEARING ON LOCAL LAW PUBLIC NOTICE IS HEREBY GIVEN that there has been presented to the Town Board of the Town of Southold, Suffolk County, New York; on the 10th day of October, 1990, a Local Law entitled, "A Local Law in Rehtlon to Se~r l~nt." NOTICE IS FURTHER GIVEN that the Town Board of the Town of Southold will hold a Imbfic hemt~g on the aforesaid Local Law at the Southold Town Hall, Main Road, Southold, New York, on the 13th day of November, 1990, at 8.'02 o'clock P.M., at which time all interested persons will be heard. This proposed "Local Law in Relation to Sewer Rent" reads as follows: BE IT ENACTED by the Town Board of the Town of Southold as follows: I. Chapter 76 (Sewers) of the Code of the Town of Southold is hereby amended as follows: 1. Section 76-2LA. is hereby amended to read as follows: A. In addition to any and all by law, tht owner of a paroel of sys~m of the FISD ~aall pay an annua[R.w~ r~nt for the use of such ~l~itary sewer sylXem, which shall be based upon an annual charge of five hundred dollars ($500.) for each separate dwelling unit served by the system. Such annual sewer rents shall be paid in semiannual in- stallments of two hundred fifty dollars ($250.) on the first days of January and June of each year. I1. This Local. Law shall take effect upon its filing with the Secretary of State. Copies of this Local Law are available in the Office of the Town Clerk to any interested persons during business hours. DATED: October 10, 1990 JUDITH T. TERRY SOUTHOLD TOWN CLERK IX-11/1/90(13) Patricia Wood, being duly sworn, says that she is the Editor, of THE LONG ISLAND TRAVELER-WATCHMAN, a public newspaper printed at Southold, in Suffolk County; and that the notice of which the annexed is a printed copy, has been published in said Long Island l'raveler-Watchman once each week for ....................... (... weeks successively, commencing on the .......... /..~['.. ...... / Sworn to before me this ..................... day of ......... Notary Public BARBARA A. SCHNBDEi~ NOTARY PUBLIC, ~t~ of ~ ~ No, 4806846 Qualified in Suflqlk COq~W__ Commission Expir~J:~/-~ ,/%~. foflows: L C~apter 76 (Sewers) of the Code parcel of land ser~,ed by the hundred dollars ($500,) for me.ts o~ two,hundnM fifty dollars ¢$250.) on the tim day~ ~ .Taaua~ and June ~ each year. Copies of this Local Law are in~ &asiness houri. DATED: Octobert0, 19~0. ~UDITH T. TEKRY SOUTHOLD TOWN CLERK STATE OF NEW YORK) ) SS: COUNTY OF SUFFOLK) '-~M/~/~-~) f'J /'~E~ C-,/C--~ of Mattituek, in said County, being duly sworn, says that he/she is Principal Clerk of THE SUFFOLK TIMES, a Weekly Newspaper, published at Mattituck, in the Town of Southold, County of Suffolk end State of Mew York, and that the Notice of which the annexed is e printed copy, has been regularly published in said Newspaper once each week for / weeks successively, commencing on the / _ day of ~ELANIE V. BROWN ~ N~nry Pu~c, State o! N~w Yo~k ,// OuardiM in ~uHolk P.~ ~l / - Principal Clark Swom to before me this '~ '~ dayof /~/b¥¢ yt~)/ t0 ~