3.01.2013

Email correspondence with and regarding Ken Bond



From: Susan Zimet

Sent: Saturday, December 01, 2012 5:10 PM

To: jtlogan6@aol.com ; planB@hvc.rr.com ; jpgallucci@gmail.com ; kevinbarrylaw@yahoo.com ; assistant@townofnewpaltz.org ; jasonwest@villageofnewpaltz.org ; sallymrhoads@gmail.com ; basco54@gmail.com ; briankimbiztrustee@gmail.com ; stewartglennnewpaltztrustee@gmail.com

Subject: Fw: Follow-Up to Conference Call on Consooidation - 11/30/12

Hi all

Yesterday Dave Lent and I had a phone conference with Ken Bond.

Jason and Nancy joined the call.

I had scheduled the phone call to review certain questions for the Finance Committee

During that conversation Ken's office

Went through the step by step process both boards need to take in order to have a referendum at the end of March

Ken sent a summary that is very comprehensive and all board members should read

The Finance Committeedid has done an awful lot of work that should be very helpful to this process

The Town Board has allocated money for it's half to hire Ken Bond for the work necessary to move this forward.

Hope you are well.

Susan

-----Original message-----

From: "Bond, Kenneth W." <Kenneth.Bond@squiresanders.com>

To: "supervisorzimet@townofnewpaltz.org" <supervisorzimet@townofnewpaltz.org>, "jasonwest.mail@gmail.com" <jasonwest.mail@gmail.com>, "wildfire00@gmail.com" <wildfire00@gmail.com>

Cc: "Neuringer, Matthew E." <Matthew.Neuringer@squiresanders.com>

Sent: Sat, Dec 1, 2012 20:03:55 GMT+00:00

Subject: Follow-Up to Conference Call on Consooidation - 11/30/12

Dear Supervisor Zimet and Mayor West:

Thank you and your colleagues for participating in yesterday's call to move forward the process of consolidation. As the bond counsel for both the Village and the Town, and as special counsel to the joint board considering consolidation, we do not advocate a position on whether consolidation is the right thing to do. The law gives that choice to the voters and the taxpayers of both communities. However, given the short time to move forward proceedings to a referendum in March, 2013 such that a favorable vote by both communities could result in the consolidation being effective January 1, 2014 and the town/village able to begin receiving its $1 million annual state aid inducement payment before March 30, 2014, it is critical that the joint board adopt an agreement of consolidation at its meeting on or about December 20, 2012 pursuant to state law and the timeline we have sent you.

With that date, or an earlier date, in mind we will work diligently with Village and Town stakeholders to draft the agreement. As Matthew pointed out in the call yesterday, the law does not require great specificity in the details - but does require adoption of concepts, structures and principals under which the new entity would operate. We will help you articulate in the agreement the consensus which has been developing on a consolidated community.

That said, I want to clarify a couple items and suggest some larger concepts and principals which the joint board may want to include in the agreement:

1. The $1 million in annual state aid, in our view, is a hard number. Your budget numbers qualify for the full amount each year. The "subject to appropriation" concern should politics or state finances derail the annual payment is not warranted. First, state policy is to reduce and consolidate the state's local governments to reduce the expense to taxpayers and increase service delivery efficiency. Second, New York is not going to run of money - ever. In the state's 2012 FY budget it appropriated $35 million for consolidation inducement payments - and paid out only $3 million. Should the consolidation occur, New Paltz will be the largest and most visible urban area in the Hudson Valley to complete the process. Thereafter, you should be all over your legislators for more appropriated state consolidation inducement aid.

2. It is a legal fantasy that residents in the Village have two votes because they also live in the Town. The 1st Amendment to the US Constitution and the NY State Constitution recognize the "one person, one vote" rule. Village residents would vote in the village referendum. Town residents outside the village would vote in the town referendum. Any other proposal will generate a lawsuit.

3. Much discussion focuses on residents of the town/village paying more/less taxes post-consolidation. The agreement should include a "transition period" commencing with the effective date of consolidation for two years (i) where no taxes go up or down on account of consolidation and any cost savings post-consolidation are spread proportionately and equally among all properties in the consolidated entity, and (ii) the levy for the consolidated entity beginning in its first year equalizes all rates for all classes of property for all properties in the consolidated entity.

4. The agreement requires a statement of a governmental organization. Key officers are a CEO, COO, CFO, police chief, fire chief, DPW supervisor, HR director, planning director, economic development officer, etc. During the transition period (2 years) the CEO (elected [after the transition period] supervisor/mayor) and COO (administrator/manager) should be the current Town Supervisor and Village Mayor. The governing board of the consolidated entity should be the entire town board and village board during the transition (about 11-12 board members) then reduced to 7 (typical city council size) after the transition. No current town or village personnel should be let go during the transition as a "cost saving" measure because of consolidation. Personnel who retire, resign or die need not be replaced (attrition) but no job losses on account of consolidation during the transition.

5. Economic development - should be a major aspiration of the consolidated entity to put more properties on the tax role - should include establishment of one or more BIDs and LDCs.

6. SUNY and non-profit properties and facilities - should pay for services under a PILOT. This may require future state legislation, a lawsuit, etc. But get the idea into the agreement.

7. Costs/benefits of services - move more services to a fee for service payment basis to reduce or maintain property taxes. You want students and tourists to pay for the services the consolidated entity provides.

8. Labor agreements - since they have all expired and the consolidated entity is new, declare that Triborough should not apply and create new uniform labor agreements during the transition period. The unions will fight and they will lose on this. The consolidated entities' employees have little to fear: over the past 10-15 years average salaries and benefits in the public sector (i.e. local government) have consistently surpassed those in the private sector.

9. Debt and agreements - those long-term debts incurred by the separate town and village pre-consolidation are paid by the taxes generated on the properties within the separate entities. Same rule applies to improvement districts' (water and sewer) pre-consolidation debt. Separate entity terminable contracts should be terminated and made contracts of the consolidated entity upon effective date.

10. Fire services - merge any Town fire districts and fire protection areas into the village fire department upon consolidation.

11. Water and sewer districts. Use the Town Law approach. The village water and sewer systems would be treated as a separate improvement district; then establish an entity-wide water district and sewer district and consolidate all water and sewer districts into the entity-wide districts during the transition. We've done this before - not rocket science.

At this point, if there are existing committee reports we can review, like that of the finance committee (have not reviewed) or the Human Resources Subcommittee (forwarded by Jason) please send ASAP. Because, of the shortage of time I would not spend more time on committee reports unless other committees did work and can produce a short written summary of their findings ASAP. That said, you need to have answers to the following items at least in summary form well before December 20 for the agreement:

(a) the name of each local government entity to be consolidated (Town of New Paltz, Village of New Paltz, any fire districts in the town);

(b) the name of the proposed consolidated local government entity, which name shall be such as to distinguish it from the name of any other like unit of government in the state of New York (except the name of any one of the entities to be consolidated) (New Paltz, Manhiem, or some other interesting Huguenot or Dutch word [I'm partial to Friesland and Groningen from where my mother's family immigrated in the late 19th century);

(c) the rights, duties and obligations of the proposed consolidated local government entity - (see note 4 above - this needs elaboration but 4 will get you started);

(d) the territorial boundaries of the proposed consolidated local government entity (the current town boundaries; the village boundaries dissolve);

(e) the type and/or class of the proposed consolidated local government entity (first class town/village [based on population]);

(f) the governmental organization of the proposed consolidated local government entity insofar as it concerns elected and appointed officials and public employees, along with a transitional plan and schedule for elections and appointments of officials - (see notes 4 to 11 - also needs elaboration);

(g) a fiscal estimate of the cost of and savings which may be realized from consolidation - (this will be a guess or perhaps numbers can be tweezed from the Fairweather report or committee reports; however, other than the $1 million annually from the state, you're not looking for savings during the transition [first 2 years] as much as you are looking for efficiencies in operation which generate permanent savings and tax reductions after the transition);

(h) each entity's assets, including, but not limited to, real and personal property, and the fair value thereof in current money of the United States - (public facilities asset values can be obtained from town and village certified financials per GASB 34 reporting; private assets can be obtained from the assessor's office);

(i) each entity's liabilities and indebtedness, bonded and otherwise, and the fair value thereof in current money of the United States - (terminable contracts are only current liabilities - essentially the town and village expense budget numbers; indebtedness is all the town and village general obligation debt - the things we write approving opinions on - plus any financing leases for equipment);

(j) terms for the disposition of existing assets, liabilities and indebtedness of each local government entity, either jointly, separately or in certain defined proportions - (assets to be made owned by consolidated entity during transition; separate town and village long-term liabilities remain where they are - see note 9 above - proceeds of any assets disposed of post-consolidation go into the pot of the consolidated entity) ;

(k) terms for the common administration and uniform enforcement of local laws, ordinances, resolutions, orders and the like, within the proposed consolidated local government entity - (lay out where the consolidated entity will follow Town Law and where it will follow Village Law; it must follow the GML for local laws which might deviate from [but not conflict with] the Town Law or Village Law - I would leave implementation of these things to transition period activities);

(l) the effective date of the proposed consolidation (January 1, 2014); and

(m) the time and place or places for the public hearing or hearings on such proposed joint consolidation agreement - (hold in the town and villages offices on dates indicated by the timeline we provided

- the statutory hearing can be held over for 2+ days; information meetings of an informal nature can be held after December 20 and before the vote).

So there you have it - the Cliff notes for a consolidation agreement. If you can agree on the big concepts you can get an agreement together. If you agonize over details and ruminate in the weeds this will never happen. Any one who absolutely opposes consolidation for any reason can campaign against it to convince the voters to reject it. But opposition by stonewalling to prevent the question from being placed before the voters (at a time they are aware of the issue and forming their own opinions) seems a little disingenuous given the intent and state policy behind the consolidation law.

Finally, we are transactional lawyers and used to the pressure of getting things done with tight deadlines. Matthew is finished with final exams on the 14th and has offered to encamp in New Paltz for a week to work 24/7 with you to craft an agreement - at no extra cost, I should add. I have intentionally not marked this email "Confidential - Attorney Client Privilege" so that you can freely share it with others as you deem appropriate. In the words of Mr. Spock, "Long Life and Prosper." Ken

Kenneth W. Bond

From: PlanB@hvc.rr.com

To: Susan Zimet <supervisorzimet@townofnewpaltz.org>, jtlogan6@aol.com, jpgallucci@gmail.com, kevinbarrylaw@yahoo.com, assistant@townofnewpaltz.org, jasonwest@villageofnewpaltz.org, sallymrhoads@gmail.com, basco54@gmail.com, briankimbiztrustee@gmail.com, stewartglennnewpaltztrustee@gmail.com

Sent: Wed, Dec 5, 2012 04:47:58 GMT+00:00

Subject: Ken Bond Conference Call on Consooidation - 11/30/12

Susan, I'm not clear on where the data and new contracts and water districts etc outlined below by Ken Bond are going to come from. Is this what the $75,000 will provide? Kitty

From: Susan Zimet <supervisorzimet@townofnewpaltz.org>

To: PlanB <PlanB@hvc.rr.com>; jtlogan6 <jtlogan6@aol.com>; jpgallucci <jpgallucci@gmail.com>; kevinbarrylaw <kevinbarrylaw@yahoo.com>; assistant <assistant@townofnewpaltz.org>; jasonwest <jasonwest@villageofnewpaltz.org>; sallymrhoads <sallymrhoads@gmail.com>; basco54 <basco54@gmail.com>; briankimbiztrustee <briankimbiztrustee@gmail.com>; stewartglennnewpaltztrustee <stewartglennnewpaltztrustee@gmail.com>

Sent: Wed, Dec 5, 2012 8:24 am

Subject: Re: Ken Bond Conference Call on Consooidation - 11/30/12

Kitty

All the documents needed Will be developed with Ken Bond's. Team working with us.
It's important we do this right
and cannot do it alone.

Hope this helps

Susan

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