HomeMy WebLinkAbout92-0924S
1COMMON COUNCIL
CITY HALL, BUFFALO N.Y.
SPECIAL SESSION
SEPTEMBER 24, 1992
at: 2:00 P.M.
Present- George K. Arthur, President of the Council and Councilmembers
Amos, Bakos, Bell, Collins, Coppola, Fahey, Franczyk, Higgins, LoTempio, Perla,
Zuchlewski. - 12
Absent- Councilmember - Pitts.
No. 1
Call For Special Session
Mr. Charles L. Michaux, III
City Clerk
1308 City Hall
Buffalo, New York
Dear Mr. Michaux:
Pursuant to Section 30 of the Charter of the City of Buffalo, upon the
written request of five Council Members of the City of Buffalo, dated September
22, 1992, presented to you herewith, I hereby call a Special Meeting of the
Common Council, to be held in the Council Chambers, City Hall, Buffalo, New
York, on September 24, 1992 at 2:00 p.m. for the following purposes:
1. To discharge all items concerning the Water System Transfer Agreements
from the Committee of the Whole;
2. Receive and file the SEQRA negative declaration on the transfer;
3. To accept and approve amendments to the Water System Financing,
Acquisition and Operation Agreements;
4. To approve the Water System Financing, Acquisition and Operation
Agreements as amended;
5. To approve the selection of a consulting engineer and a rate consultant;
and
6. To take action on all remaining items discharged from the Committee of
the Whole.
George K. Arthur
Council President
RECEIVED AND FILED.
Hon. George K. Arthur
President of the Common Council
1315 City Hall
Buffalo, New York
Dear Sir:
WE, the undersigned, members of the Common Council, hereby request that
you call a Special Meeting of the Common Council, pursuant to Section 30 of the
Charter of the City of Buffalo, for the following purposes:
1. To discharge all items concerning the Water System Transfer Agreements
from the Committee of the Whole;
2. Receive and file the SEQRA negative declaration on the transfer;
3. To accept and approve amendments to the Water System Financing,
Acquisition and Operation Agreements;
4. To approve the Water System Financing, Acquisition and Operation
Agreements as amended;
5. To approve the selection of a consulting engineer and a rate consultant;
and
6. To take action on all remaining items discharged from the Committee of
the Whole.
WE request that this Special Meeting be held on September 24, 1992 at
2:00 p.m.
Brian M. Higgins
David Franczyk
Norman Bakos
Clifford Bell
Rosemarie LoTempio
TO EACH MEMBER OF THE COMMON COUNCIL:
YOU ARE HEREBY NOTIFIED that, pursuant to Section 30 of the Charter of
the City of Buffalo, upon the written request of five Council Members, dated
September 22, 1992 the HON. GEORGE K. ARTHUR, President of the Common Council,
has called a Special Meeting of the Common Council, to be held in the Council
Chambers, City Hall, Buffalo, New York, on September 24, 1992 at 2:00 p.m. for
the following purposes:
1. To discharge all items concerning the Water System Transfer Agreements
from the Committee of the Whole;
2. Receive and file the SEQRA negative declaration on the transfer;
3. To accept and approve amendments to the Water System Financing,
Acquisition and Operation Agreements;
4. To approve the Water System Financing, Acquisition and Operation
Agreements as amended;
5. To approve the selection of a consulting engineer and a rate consultant;
and
6. To take action on all remaining items discharged from the Committee of
the Whole.
Pursuant to Rule 2 of the Rules of Order of the Common Council of the
City of Buffalo, each of the following named members of the Common Council, to
wit:
ARCHIE L. AMOS, JR. DAVID FRANCZYK
NORMAN M. BAKOS CARL A. PERLA, JR.
CLIFFORD BELL BRIAN HIGGINS
DAVID A. COLLINS ROSEMARIE LoTEMPIO
ALFRED T. COPPOLA JAMES W. PITTS
EUGENE M. FAHEY DALE ZUCHLEWSKI
hereby states that he received twenty-four (24) hours' notice of the time and
purpose of the Special Meeting of the Common Council duly called to be held on
September 24, 1992 at 2:00 p.m.
STATE OF NEW
COUNTY OF ERIE ) ss:
CITY OF BUFFALO
On this 22nd and 23rd day of September, 1992, before me, the subscribers,
personally appeared:
Clifford Bell, David Collins, Norman Bakos, Brian Higgins, David Franczyk,
Alfred T. Coppola, Dale Zuchlewski, Rosemarie LoTempio, Carl A. Perla, Jr.,
James W. Pitts, Archie L. Amos, Jr.
to me known to be the same persons described in and who executed the foregoing
instrument, and they duly and severally acknowledged to me that they executed
the same.
Richard Okoniewski
Commissioner of Deeds, in and for the City of Buffalo, NY
My Commissioner Expires 12/31/92.
No. 2
Discharge All Items from the Committee of the Whole
Mr. Fahey moved that the following items be discharged from the
Committee of the Whole.
Water System Transfer, Financing and Operation Agreements
(Item 3 C.C.P. 9/18/92)
(Item 207 C.C.P. 7/21/92)
Proposed amendments- Water System Transfer Agreements (C. Clerk)
(Item 110 C.C.P. 9/1/92)
Water System Transfer Agreements (CC)
(Item 87 C.C.P. 9/15/92)
(Item 66 C.C.P. 7/21/92)
Water Payment Structure
(Item 88 C.C.P. 9/15/92)
(Item 195 C.C.P. 7/21/92)
Water Payment Structure (PW)
(Item 89 C.C.P. 9/15/92)
(Item 51 C.C.P. 7/21/92)
Water Payment Structure (A&F)
(Item 90 C.C.P. 9/15/92)
(Item 85 C.C.P. 7/21/92)
Seconded by Mr. Franczyk.
ADOPTED.
The Items are now before the Common Council for its consideration.
No. 3
SEQR Negative Declaration
MR. FAHEY moved that the attached
Negative Declaration, Notice of Determination of Non-Significance, dated
September 14, 1992 issued by the Buffalo Water Board, as lead agency, pursuant
to Article 8 (the State Environmental Quality Review Act) of the Environmental
Conservation Law be received and filed.
Seconded By Mr. Bakos.
ADOPTED.
STATE ENVIRONMENTAL QUALITY REVIEW
NEGATIVE DECLARATION
NOTICE OF DETERMINATION OF NON-SIGNIFICANCE
September 14, 1992
This notice is issued pursuant to Part 617 of the implementing
regulations pertaining to Article 8, the State Environmental Quality Review Act
("SEQRA"), of the Environmental Conservation Law.
The Buffalo Water Board, as lead agency, has determined that the proposed
action described below will not have a significant effect on the environment
and a Draft Environmental Impact Statement will not be prepared.
Name of Action: City of Buffalo Water System Transfer,
Finance and Operation
SEQR Status: Type I
Conditioned Negative
Declaration: No
Description of Action:
The Buffalo Water Board (the "Board") is proposing to enter into
Acquisition and Operation Agreements with the City of Buffalo (the "City") and
a Financing Agreement with the City and the Buffalo Municipal Water Finance
Authority (the "Authority"). The Acquisition and Operation Agreements provide
for the transfer of ownership or easements pertaining to the City's water
intake and supply systems including the following facilities:
Emerald Channel Intake
Bird Island Intake
The Water Filtration Plant Adjacent to the Colonel Ward
Pumping Station
Colonel Ward Pumping Station
Massachusetts Avenue Pumping Station
5 Water Storage Tanks
Service Center
(Annex to Colonel Ward Pumping station)
5 Barracks
(for distribution system and maintenance crews)
All meters
(approximately 21,000)
Water Transmission and Distribution System (Approximately
780 miles of pipe, 11,120 valves and 7,430 fire hydrants.)
The Acquisition and Operation Agreements also provide for the performance
by the City of various obligations and agreements, including continuing the
daily administration, operation, and maintenance of the water system,
continuing to undertake the water system's present and future capital
improvement program, and providing the Board with general overhead services and
facilities, including the services of the City's employees for administrative
matters and the use of the City's facilities for meetings and other
administrative matters. The Financing Agreement provides for certain matters
related to the financing of these transfers and operation of the water system.
The primary reason for the formation of the Board and the Authority is to
provide a new financing mechanism for the water system. This mechanism includes
the ability to issue bonds or other obligations that are backed solely by
revenues derived from the water system. Additionally, the financial
responsibility for the water system will be separated from the City of Buffalo,
providing the opportunity for an improved credit rating for the debt issued for
the benefit of the water system.
Location: City of Buffalo, Erie County
Reasons Supporting Determination of Non-Significance:
Pursuant to Part 617.6(g) of the regulations promulgated by the
Department of Environmental Conservation pursuant to SEQRA ("SEQRA
Regulations"), the Board, as lead agency, has considered the City of Buffalo
Water System Transfer, Finance and Operation SEQRA action (the "Action") and
has reviewed the completed full Environmental Assessment Form ("EAF") and the
criteria for determining significance set out in Part 617.11 of the SEQRA
Regulations. In so doing, the Board has identified no relevant areas of
environmental concern that could have a significant effect on the environment.
In essence, the Action involves the transfer of legal title or easements of
City property and facilities to the Board. Notwithstanding such transfer,
operation, maintenance, and repair of the water system will continue to remain
the responsibility of the City pursuant to the Operation Agreement.
The Finance Agreement will allow water system improvements to be financed
by bonds not dependent on the City's credit or limited by constitutional,
budget or political constraints on the City's capital budget. This should
allow water system improvements to be planned and implemented more effectively,
including improvements to remedy the leakage and waste of water in the
transmission and distribution system and improvements to maintain drinking
water quality in conformance with Federal, State and local standards. While
rates may see an initial moderate increase, rate stabilization is projected due
to the implementation of a long-term capital improvement plan.
For Further Information:
Contact Person: Laurence K. Rubin
Secretary and General Counsel
Buffalo Water Board
Address: Room 1101
City Hall
65 Niagara Square
Buffalo, New York 14202
Telephone : (716) 851-4334
This Notice Has Been Filed With:
Commissioner, Department of Environmental Conservation,
50 Wolf Road, Albany, New York 12233-0001 for publication in the "Environmental
Notice Bulletin"
Region 9 Office, Department of Environmental Conservation
J. Griffin, Mayor, City of Buffalo
Buffalo Common Council
Buffalo Sewer Authority
Erie County Department of Health
Erie County Department of Environment & Planning
New York State Department of Transportation
New York State Department of Health
AYES- AMOS, ARTHUR, BAKOS, BELL, COLLINS, FAHEY, FRANCZYK, HIGGINS, LOTEMPIO,
PERLA, ZUCHLEWSKI- 11.
NOES- COPPOLA- 1.
No. 4
Mr. Pitts now took his seat in the Council Chamber at 2:30 P.M.
No. 5
Amendments to Transfer Agreements
Mr. Fahey now moved to accept the following amendments to the
Water System Financing, Acquisition and Operation Agreements dated July 21,
1992 submitted by the Corporation Counsel:
Operation Agreement
Page Item
3 "Board" shall mean the Buffalo Water Board, a body corporate and politic
constituting a corporate municipal instrumentality of the State created and
existing under and by virtue of the Board Act.
4 New insertion - "City Charter" shall mean The Charter of the City of
Buffalo, as amended from time to time.
4 "Consulting Engineer" shall mean such independent engineer or firm of
engineers of recognized standing selected by the Authority in consultation with
the Board and approved by the City.
5 "Operating Expenses" shall mean all reasonable or necessary current
expenses of operating, maintaining, repairing, and managing the System,
including debt service on all of the City's outstanding general obligation
bonds (or portions thereof), to the extent that the proceeds of such
outstanding bonds were used for water related purposes, all salaries,
administrative, general, commercial, architectural, engineering, advertising,
public notices, auditing, billing, collection and enforcement and legal
expenses, insurance and surety bond premiums, consultants fees and charges,
payments to pension, retirement, health and hospitalization funds, any taxes or
assessments which may lawfully be imposed on the System or the income or
operation thereof, payments to any taxing jurisdiction (including the City) in
lieu of taxes, costs of public hearings, ordinary and current rentals of
equipment or other property, hydrant rentals, lease payments for real property
or interest therein, usual expenses of maintenance and repair (including
replacements), expenses, liabilities and compensation of the Bank or any other
depositary of Board funds, the amount of any judgment or settlement arising out
of a tort claim related to the ownership, Construction, repair, administration,
operation or maintenance of the System, and all other expenses necessary,
incidental or convenient for the efficient operation of the System, but only to
the extent properly attributable to the Board or the System, including but not
limited to all amounts payable pursuant to Section 6.1(B) of the Operation
Agreement.
6 "Rate Consultant" shall mean such independent accountant or firm of
independent accountants, or management consultant or firm of management
consultants, or independent engineer or firm of independent engineers (which
must not be the same firm then serving as the Consulting Engineer), selected by
the Board in consultation with the Authority and approved by the City.
8 New insertion - SECTION 1.2. (E) Any action required to be taken by the
City under this Operation Agreement shall require action by the Mayor and
approval by the Common Council as mandated by the City Charter.
11 SECTION 3.1. (B) Pursuant to this Operation Agreement, the Financing
Agreement and the Act, the City agrees that the Board shall be entitled to
advise and consult with the City and appropriate officers and employees thereof
in all substantially material decisions affecting the operation and management
of the System. Such decisions shall include, but not necessarily be limited to,
capital planning for costs of Projects, and the preparation, development and
formulation of an annual budget of the City with respect solely to the
operation and management of the System for which the Board shall be required to
make payments under the Financing Agreement pursuant to City certifications
issued under Article VI of this Operation Agreement.
11 SECTION 3.1. (D) Failure on the part of the City to comply with the
provisions contained in subsections (A), (B) and (C) of this Section 3.1 shall
constitute an "event of default" under Article 8 of the Financing Agreement,
provided:
(1) The Board shall first deliver a written notice
to the City stating the basis for the deficiency, including written reports
of the Authority, the Rate Consultant and the Consultant Engineer concurring
in the Board's findings;
(2) The City shall fail to commence to correct such deficiency within
thirty (30) days of receipt of such notice; and
(3) The costs to the City of correcting such deficiency shall be provided
to the City by the Board out of the Ongoing Project Account or any other
Account; provided, however, that such costs shall not be paid out of the
General Account unless and until the Minimum Monthly Balance has been satisfied
for the month in which such costs are to be paid.
13 SECTION 4.1. (A) The City may incur Costs for the Construction,
effectuation and financing of projects in accordance with a written five year
Project capital plan mutually agreed to by the City and the Board, and
concurred to by the Authority. The initial Project capital plan shall be
established within ninety (90) days after the Acquisition Date and shall be
revised annually thereafter in conjunction with the Annual Budget adopted
pursuant to Section 6.4 of the Financing Agreement.
Financing Agreement
Page Item
14 SECTION 4.2(A) ESTABLISHMENT OF ACCOUNTS; APPLICATION OF REVENUES IN
LOCAL WATER FUND. (A) The Board shall establish the following special accounts
or sub-funds within the Local Water Fund:
(1) the "Buffalo Water Board Expense Account" (the "Board Expense
Account");
(2) the "Buffalo Water Board Operation Account" (the "Operation
Account");
(3) the "Buffalo Water Board Operation and Maintenance Reserve
Account (the "Operation and Maintenance Reserve Account");
(4) the "Buffalo Water Board Ongoing Project Account" (the "Ongoing
Project Account"); and
(5) the "Buffalo Water Board General Account" (the "General Account");
each of which shall be held by the Board at the Bank in one or more Bank
accounts as the Board may determine.
14 SECTION 5.3. LATE PAYMENTS. All late payments of water charges shall be
the property of the Board, and shall be collected by the City through any
applicable remedy available under current law on behalf of the Board in
accordance with procedures established pursuant to Section 5.1 hereof.
15 THIRD: beginning with the first day of each calender month, to the
Operation Account, until paid in each calendar month, for credit against the
amount due from the Board to the City for Operating Expenses for the then
current Fiscal Year pursuant to Section 6.1 of the Operation Agreement,
one-twelfth (or, with respect to the first Fiscal Year, a fraction, the
numerator of which is one and the denominator of which is the number of
calendar months or portions thereof in such first Fiscal Year) of the amount
certified to the Board pursuant to Section 6.2 of the Operation Agreement,
provided, however, that the City may provide to the Board, with the City annual
budget for Operating Expenses, an alternative payment schedule, concurred in by
the Rate Consultant, for the upcoming Fiscal Year which equitably establishes
both the timing of the City's incurrence of Operating Expenses and the timing
of Board revenues and fund balances, but in no event shall the establishment of
such alternative payment schedule be deemed to affect in any manner the
relative priority of the accounts or sub-funds established by items FIRST
through SIXTH herein;
16 SECTION 6.1. (B)(3) an annual amount equal to $4,036,000 increased by
five percent (5%) compounded annually for the term of this Operation Agreement;
provided, however, that the City may waive all or any part of such increase
annually and, in such event, may, at the City's sole discretion, defer and
accrue up to twenty percent (20%) of such waived increase (one percent (1%) of
the total amount due the City from the previous year) and, again at the city's
sole discretion, require that all or any portion of such accrued moneys be paid
to the City with the annual payment in any subsequent Fiscal Year in payment of
all other Operating Expenses not provided in Section 6.1(B)(1) hereof.
16 SECTION 6.2. (A)(l) Pursuant to the undertaking of the City contained in
Section 3.1(B) hereof, the City agrees that the Board may have input in the
preparation of the departmental budget requests submitted to the Mayor by the
City by the Water and Engineering Divisions of the Department of Public Works
of the City for both the Operating Expenses and the costs of a Project or
Projects for the ensuing Fiscal Year. No later than five (5) business days
after passage of the City's Budget for the ensuing Fiscal Year, the City,
acting by its Budget Director or such other person as the City shale designate,
shall certify to the Board, with regard to such Fiscal Year, the amount, as
included in the City's Budget, which the City reasonably anticipates it will
expend in connection with each of the costs described in paragraphs (l) and (2)
of subsection (B) of Section 6.1 hereof in the ensuing Fiscal Year. Such
certification shall also include an approximate monthly breakdown of expenses
to be incurred in such Fiscal Year and an estimated schedule of payments to be
made by the Board to the City consistent therewith.
17 SECTION 6.2. (A)(4) The Board shall commence payment of amounts in
respect of Costs of Projects certified by the City pursuant to Section
6.1(B)(2) hereof upon receipt of a written request therefor delivered by the
City in accordance with Section 4.8(A) of the Financing Agreement.
19 SECTION 8.1 CITY OFFICERS AND EMPLOYEES. (A) Subject to the approval of
the Mayor and the head of the agency involved, the City and the Board may in
the future enter into agreements whereby the City will provide to the Board the
services of officers and employees of the City to carry out the public purposes
of the Board.
19 (B) should read as follows: All present and future City employees who are
assigned to the City's Division of Water or other departments, divisions or
agencies of the City and performing tasks related to the operation,
maintenance, repair, improvement, or administration of the Water System will
continue to be City employees, notwithstanding the acquisition of the Water
System by the Board, with no change in the terms and conditions of their
employment as provided in current collective bargaining agreements and any
subsequent amendments thereto.
20 SECTION 9.1. (A) Other than Permitted Encumbrances, the Board agrees that
it will not sell, lease, sublease, assign, transfer, encumber or otherwise
dispose of any part of the System, or any other real property or personal
property which may be acquired by the Board, or its interest in this Operation
Agreement, without the prior written approval of the City. The proceeds from
any such disposition shall constitute Revenues which shall be deposited by the
Board in the Local Water Fund as promptly as practicable after receipt thereof
by the Board.
22 SECTION 10.5. This Operation Agreement may be amended without the
consent of the holders of any Bonds or the Trustee therefor, but such amendment
or modification must be writing, duly authorized by the City, acting by
resolution of the Common Council of the City, and by resolutions of the Board
and of the Authority.
Financing Agreement
Page Item
4 "Authority Expenses" shall mean all reasonable or necessary expenses of
the Authority, including, but not limited to, all salaries, administrative,
general, commercial, engineering, advertising, auditing, accounting and legal
expenses, insurance and surety bond premiums, fees paid to banks, insurance
companies or other financial institutions for the issuance of Credit
Facilities, consultants' fees and charges, payments to pension, retirement,
health and hospitalization funds, costs of public hearings and public notices,
ordinary and current rentals of equipment and other property, lease payments
for real property or interests therein, expenses, liabilities and compensation
of any Fiduciary, and all other expenses necessary, . incidental or convenient
for the efficient operation of the Authority; provided, however, that (1) only
Authority members who are non-City employees shall be entitled to receive
compensation, in an amount not to exceed $50.00 per day for each day in
attendance at meetings, and (2) all Authority members shall be entitled to
receive out-of- pocket expenses associated with their duties, with an aggregate
annual cap of $5,000 for such expenses incurred by all Authority members in any
one Fiscal Year and (3) all paid employees and officers, except for legal
counsel and independent contractors reasonably required in connection with the
issuance of bonds or by the Trustee, will be subject to Common Council
approval.
4 & 5 "Board Expenses" shall mean all reasonable or necessary expenses of the
Board, including, but not limited to, all salaries, administrative, general,
commercial, engineering, advertising, auditing, accounting and legal expenses,
insurance and surety bond premiums, consultants fees and charges, payment to
pension, retirement, health and hospitalization funds, costs of public hearings
and public notices, ordinary and current rentals of equipment and other
property, lease payments for real property or interests therein, expenses,
liabilities and compensation of any depositary of funds of the Board, and all
other expenses necessary, incidental or convenient for the efficient operation
of the Board; provided, however, that (1) only Board members who are non-City
employees shall be entitled to receive compensation, in an amount not to exceed
$50.00 per day for each day in attendance at meetings, and (2) all Board
members shall be entitled to receive out-of-pocket expenses associated with
their duties, with the aggregate for all Board members not to exceed $5,000
annually for such expenses incurred by all Board members in the aggregate in
any one Fiscal Year and (3) all paid employees and officers, except for legal
counsel and independent contractors reasonably required in connection with the
issuance of bonds or by the Trustee, will be subject to Common Council
approval.
5 "Consulting Engineer" shall mean such independent engineer or firm of
engineers of recognized standing selected by the Authority in consultation with
the Board and approved by the City.
7 "Operating Expenses' shall mean all reasonable or necessary current
expenses of operating, maintaining, repairing, and managing the System,
including debt service on all of the City's outstanding general obligation
bonds (or portions thereof), to the extent that the proceeds of such
outstanding bonds were used for water related purposes, all salaries,
administrative, general, commercial, architectural, engineering, advertising,
public notices, auditing, billing, collection and enforcement and legal
expenses, insurance and surety bond premiums, consultants fees and charges,
payments to pension, retirement, health and hospitalization funds, any taxes or
assessments which may lawfully be imposed on the System or the income or
operation thereof, payments to any taxing jurisdiction (including the City) in
lieu of taxes, costs of public hearings, ordinary and current rentals of
equipment or other property, hydrant rentals, lease payments for real property
or interest therein, usual expenses of maintenance and repair (including
replacements), expenses, liabilities and compensation of the Bank or any other
depositary of Board funds, the amount of any judgment or settlement arising out
of a tort claim related to the ownership, Construction, repair, administration,
operation or maintenance of the System, and all other expenses necessary,
incidental or convenient for the efficient operation of the System, but only to
the extent properly attributable to the Board or the System, including but not
limited to all amounts payable pursuant to Section 6.1(B) of the Operation
Agreement.
8 "Rate Consultant" shall mean such independent accountant or firm of
independent accountants, or management consultant or firm of management
consultants, or independent engineer or firm of independent engineers (which
must not be the same firm then serving as the Consulting Engineer), selected by
the Board in consultation with the Authority and approved by the City.
10 SECTION 1.2. (E) Any action required to be taken by the City under this
Financing Agreement shall require action by the Mayor and approval by the
Common Council as mandated by the City Charter.
17 New Insertion - SECTION 4.5(D). If the accrued surplus on deposit in the
Operation and Maintenance Reserve Account at the end of any Fiscal Year exceeds
an amount equal to ten percent (10%) of the total Annual Budget of the Board
for such Fiscal Year, then during the next Fiscal Year the Board shall expend
the portion of such accrued surplus which exceeds ten percent (10%) of such
Annual Budget in the manner described in paragraphs (2) and/or (3) of Section
4.5(C) hereof, unless the Board and the City otherwise agree to the contrary.
21 SECTION 6.1. (B) Without limiting the generality of subsection (A)
above, the Board shall establish and collect rates, fees and charges sufficient
in each Fiscal Year so that Revenues collected in such Fiscal Year will be at
least equal to the sum of (1) one hundred fifteen percent (115%) of estimated
Aggregate Debt Service and Projected Debt Service payable in such Fiscal Year,
(2) one hundred percent (100%) of the Operating Expenses and Authority Expenses
payable in such Fiscal Year and (3) one hundred percent (100%) of the amount
necessary to pay the Required Deposits for such Fiscal Year; provided, however,
that any Principal Installment which is a Refundable Principal Installment may
be excluded from Aggregate Debt Service for purposes of the foregoing but only
to the extent that such Principal Installment is payable from funds
specifically held in trust therefor and which were derived from sources other
than Revenues. A failure to generate Revenues in accordance herewith shall not
constitute an "event of default" within the meaning of Article VIII hereof, if
the Board takes timely action to correct any such deficit under subsection (C)
below.
22 SECTION 6.2. (A) The Authority shall retain annually a Consulting
Engineer for a term of one year and the Board shall retain annually a Rate
Consultant for a term of one year whose duties respectively, shall be to make
any certificates and perform any other acts required or permitted of the
Consulting Engineer and the Rate Consultant hereunder, under the Operation
Agreement or under the Resolution. The same person or firm may not perform the
duties and functions of the Consulting Engineer and the Rate Consultant.
22 (B) ...Such report shall be submitted to the Authority, the Board, the
Mayor, the Common Council and the Trustee...
26 SECTION 6.9. COVENANT OF CITY AS TO RATES AND CHARGES. The City covenants
that, upon the issuance of the Bonds by the Authority, the City will-not
thereafter levy user fees, rents and other charges with respect to the System
until all Bonds are paid or such Bonds are otherwise defeased in accordance
with the terms of the Resolution; provided, however, that nothing herein
contained shall be construed so as to prevent the City from levying ad valorem
taxes or assessments for the purpose of paying the costs and expenses of the
System or to pay the principal of and interest on general obligation bonds of
the City heretofore or hereafter issued to finance the System or any part
thereof.
Appendix A Use of Proceeds
Payment of the Purchase Price of the System $26,500,000.00
Repayment of outstanding BAN'S 6,215,000.00
Deposit to Construction Fund 14,820,000.00
Deposit to the Capital Debt Service Reserve Fund 5,815,000.00
Underwriting Discount 500,000.00
1 800,000.00
Cost of Issuance
Original Issue Discount 350,000.00
Total $55,000,000.00
1-includes bond insurance premium and other costs and expenses incurred by the
Authority in connection with the issuance and delivery of the Bonds.
26 SECTION 6.11. BOOKS, RECORDS AND ACCOUNTS; AUDIT BY COMPTROLLER. (A) If
the Authority so requests pursuant to Section 1048-i(2)(ix) of the Act, the
Board shall provide to the Authority such reports concerning Projects as may
be required by the Authority.
(B) Each of the Authority and the Board shall keep, or cause to be kept,
proper books of record and account in which complete and correct entries shall
be made of all transactions relating to their corporate purposes under the Act.
In accordance with Section 1048-y of the Act and Section 2800 of Title 1 of
Article 9 of the Public Authorities Law of the State, the Authority and the
Board shall each annually prepare a detailed report concerning their activities
for the Fiscal Year which shall comply with the provisions of Section 1048-y of
the Act and Section 2800 of Title 1 of Article 9 of the Public Authorities Law
of the State and submit same to the Mayor, the Director of the Budget of the
City, the Comptroller, the Governor, the State Legislature and the State
Comptroller, which report shall set forth: (1) their respective operations and
accomplishments; (2) their respective receipts and disbursements, or revenues
and expenses, during such Fiscal Year in accordance with the categories or
classifications established by them for their own operating and capital outlay
purposes; (3) their respective assets and liabilities at the end of their
respective Fiscal Year including the status of reserve, depreciation, special
or other funds and including the receipts and payments of these funds; and (4)
a schedule of the Authority's bonds and notes outstanding at the end of its
fiscal year, together with a statement of the amounts redeemed and incurred
during such fiscal year. Such reports shall be submitted within ninety (90)
days of the end of each Fiscal Year.
(C) The accounts of the Authority and the Board shall be subject to the
supervision of the Comptroller, and he or his legally authorized
representatives are hereby authorized and empowered from time to time to
examine the accounts and books of the Authority and the Board, including their
respective receipts, disbursements, contracts, sinking funds, investments and
any other matters relating to their respective financial standing and fiscal
affairs.
Page Item
27 add SECTION 6.16. LIMITATIONS ON OFFICERS AND EMPLOYEES. Neither the
Board nor the Authority may employ any paid officers or employees
except for independent contractors, including legal counsel, reasonably
required in connection with the issuance of bonds or by the Trustee.
Seconded by Mr. Higgins.
ADOPTED.
Mr. PerIa now moved as an additional amendment to accept and approve the
following amendment:
All original members of the Water Board or the Water Finance Authority Board
shall serve for one year after which those members shall be replaced by members
not employed by the City of Buffalo or any of its agencies.
LOST.
AYES- AMOS, ARTHUR, COPPOLA, PERLA, PITTS, ZUCHLEWSKI- 6.
NOES- BAKOS, BELL, COLLINS, FAHEY, FRANCZYK, HIGGINS, LOTEMPIO- 7.
Mr. Fahey now moved his original motion to approve the amendments as presented;
Seconded by Mr. Bakos.
ADOPTED.
AYES- AMOS, BAKOS, BELL, FAHEY, FRANCZYK, HIGGINS, LOTEMPIO, PERLA, ZUCHLEWSKI-
9.
NOES- ARTHUR, COLLINS, COPPOLA, PITTS- 4.
No. 6
Approval of the Water System Transfer
Agreements as Amended
(Item No. 2, C.C.P., 9/18/92)
(Item No. 207, C.C.P., 7/21/92)
Mr. Fahey now moved to approve the attached Water System Financing,
Acquisition and Operation Agreements as amended and dated September 24, 1992
subject to the following:
That the Mayor be and hereby is authorized to execute the said financing,
acquisition and operation agreements by and among the City of Buffalo, the
Buffalo Municipal Water Finance Authority, and the Buffalo Water Board dated as
of September 24, 1992 subject to such minor non-material changes as may be
required by the Corporation Counsel; and
That the Mayor, Comptroller, Corporation Counsel and other City officers
as designated by the Mayor be and hereby are authorized to execute, deliver or
prepare such other certificates, opinions, assignments, deeds, leases, and
other documents necessary to fulfill the terms and conditions of the said
financing, acquisition and operation agreements.
Seconded by Mr. Higgins.
PASSED.
AYES- AMOS, BAKOS, BELL, FAHEY, FRANCZYK, HIGGINS, LOTEMPIO, PERLA, ZUCHLEWSKI-
9.
NOES- ARTHUR, COLLINS, COPPOLA, PITTS- 4.
No. 7
Selection of Consulting Engineer and Rate Consultant
Mr. Fahey moved:
That the selection of Heyden/Wegman, Inc., as consulting engineer by the
Buffalo Municipal Water finance Authority for the initial annual consulting
engineering services as required under the Financing Agreement is approved and
that the selection of the firm of Ernst & Young as rate consultant by the
Buffalo Water Board for the initial annual rate consulting services as required
under the Financing Agreement is approved.
Mr. Fahey now moved to refer the above item to the Committee on Finance;
Seconded by Mr. Bakos.
ADOPTED.
No. 8
Proposed Amendments To The Water System
Transfer Agreements
(Item #110 C.C.P. 9/1/92)
Mr. Fahey now moved the above item be received and filed.
Seconded by Mr. Bakos.
ADOPTED.
No. 9
Water System Transfer Agreements (CC)
(Item # 87 C.C.P. 9/15/92)
(Item # 66 C.C.P. 7/21/92)
Mr. Fahey now moved that the above item be Received and Filed.
Seconded by Mr. Bakos.
ADOPTED.
No. 10
Water Payment Structure
(Item # 88, C.C.P. 9/15/92)
(Item # 195, C.C.P. 7/21/92)
Mr. Fahey now moved the above item be Received and Filed.
Seconded by Mr. Bakos.
ADOPTED.
No. 11
Water Payment Structure (PW)
(Item # 89 C.C.P. 9/15/92)
(Item # 51 C.C.P. 7/21/92)
Mr. Fahey now moved the above item be Received and Filed.
Seconded by Mr. Bakos.
ADOPTED.
No. 12
Water Payment Structure (A&F)
(Item # 90 C.C.P. 9/15/92)
(Item # 85 C.C.P. 7/21/92)
Mr. Fahey now moved that the above item be Received and Filed.
Seconded by Mr. Bakos.
ADOPTED.
No. 13
At 2:48 P.M. Mr. Fahey moved to adjourn; Seconded by Mr. Bell.
Charles L. Michaux III
City Clerk