TOWN OF NORTH EASTTOWN OF NORTH EAST

NEW TOWN HALL AND NEW TOWN HALL AND HIGHWAY FACILITY HIGHWAY FACILITY

October 2015 October 2015

PRESENTATION PRESENTATION OVERVIEWOVERVIEW

Proposition Proposition Proposed Land AcquisitionProposed Land Acquisition Proposed Construction Proposed Construction Construction CostsConstruction Costs Financial ImplicationsFinancial Implications

Bond PropositionBond Proposition Shall the bond resolution dated August 26, 2015, authorizing Shall the bond resolution dated August 26, 2015, authorizing

the acquisition of two parcels of land and the buildings the acquisition of two parcels of land and the buildings thereon and the reconstruction retrofitting thereof for thereon and the reconstruction retrofitting thereof for municipal purposes, located at 6073 and 6075-6077 Route 22 municipal purposes, located at 6073 and 6075-6077 Route 22 in the Town of Northeast at a maximum estimated cost of in the Town of Northeast at a maximum estimated cost of $3,150,000, and authorizing the issuance of $3,150,000 serial $3,150,000, and authorizing the issuance of $3,150,000 serial bonds to pay the cost thereof, providing for a period of bonds to pay the cost thereof, providing for a period of probable usefulness of twenty five years with the maximum probable usefulness of twenty five years with the maximum maturity of such bonds to exceed five years, delegating to the maturity of such bonds to exceed five years, delegating to the Supervisor the power to sell and issue such bonds and bond Supervisor the power to sell and issue such bonds and bond anticipation notes in anticipation of the issuance of such anticipation notes in anticipation of the issuance of such bonds, pledging the faith and credit of the Town to the bonds, pledging the faith and credit of the Town to the payment of principal of and interest on such obligations, and payment of principal of and interest on such obligations, and providing for an estoppel provision, be approved? providing for an estoppel provision, be approved?

Identified Inadequacies of theIdentified Inadequacies of theExisting Town Highway Existing Town Highway

GarageGarage1.1. IInadequate spacenadequate space Two large pieces of equipment & six attachments currently Two large pieces of equipment & six attachments currently

have to be stored outside. (estimated replacement value of have to be stored outside. (estimated replacement value of

these items is approximately $650k - $750kthese items is approximately $650k - $750k Plows need be removed when trucks are put inside the highway Plows need be removed when trucks are put inside the highway

garagegarage Insufficient room to perform proper equipment maintenanceInsufficient room to perform proper equipment maintenance

2.2. EEnvironmental issuesnvironmental issuesno oil/water separator; floor drains have been sealed as directed no oil/water separator; floor drains have been sealed as directed

by NYSDECby NYSDECemployees must work in mud & water when doing repairsemployees must work in mud & water when doing repairsno adequate facilities to wash highway equipment no adequate facilities to wash highway equipment Proximity to existing Trout StreamProximity to existing Trout Stream

Identified Inadequacies of theIdentified Inadequacies of the Existing Town Highway Existing Town Highway

GarageGarage

3.3. IInterior working conditionsnterior working conditionsgarage does not have a proper ventilation systemgarage does not have a proper ventilation systemwindows in poor condition and will not open for properwindows in poor condition and will not open for proper

ventilationventilationPonding water within garagePonding water within garageoverhead insulation is saturated with diesel sootoverhead insulation is saturated with diesel sootexpensive to heat (3,000 gallons of heating oil used this past expensive to heat (3,000 gallons of heating oil used this past

year)year)Inadequate headroom to raise truck bodies, therefore some Inadequate headroom to raise truck bodies, therefore some

repairs are performed outside.repairs are performed outside.

Unique Opportunity Unique Opportunity and Proposed Planand Proposed Plan

The Town has been in discussions with the Owner of The Town has been in discussions with the Owner of Dutchess Diesel regarding the potential acquisition Dutchess Diesel regarding the potential acquisition of the existing Dutchess Diesel Facility located on of the existing Dutchess Diesel Facility located on Route 22 . Route 22 .

The acquisition would provide for a unique The acquisition would provide for a unique opportunity to the Town allowing the Highway opportunity to the Town allowing the Highway Department and Town Hall to be relocated to a single Department and Town Hall to be relocated to a single location.location.

Existing Existing Dutchess Diesel FacilityDutchess Diesel Facility

Existing FacilityExisting Facility

2 Parcel consists of approximately 3.8 acres.2 Parcel consists of approximately 3.8 acres. Two existing building - Main Building 11,858 SF.Two existing building - Main Building 11,858 SF. Garage Bldg. 10,440 SF.Garage Bldg. 10,440 SF. Garage Building includes a pre-engineered steel Garage Building includes a pre-engineered steel

building constructed in 2012. Building is fully building constructed in 2012. Building is fully heated.heated.

Original Building with admin area was built in 1960’s. Original Building with admin area was built in 1960’s. with several renovations and additions.with several renovations and additions.

Current facility has an existing oil/water separator.Current facility has an existing oil/water separator.

Project Acquisition CostsProject Acquisition Costs

Two Appraisals completed on project.Two Appraisals completed on project. Owner’s Appraisal = $1,900,000Owner’s Appraisal = $1,900,000 Town’s Appraisal = $1,550,000Town’s Appraisal = $1,550,000

$1,750,000 purchase price has negotiated $1,750,000 purchase price has negotiated

Copies of both appraisals are located on Town’s web site. Copies of both appraisals are located on Town’s web site.

The Town’s Web Site also contains other information The Town’s Web Site also contains other information associated with the project.associated with the project.

Proposal for ConsiderationProposal for Consideration

Proposal is to move the Town Hall and Highway Garage Proposal is to move the Town Hall and Highway Garage Facility to the current Dutchess Diesel Location.Facility to the current Dutchess Diesel Location.

Town Highway Department would move into the Town Highway Department would move into the existing Garage facility. A small portion of the existing existing Garage facility. A small portion of the existing main building would be renovated to provide for an main building would be renovated to provide for an office and breakroom.office and breakroom.

A new Sand/Salt storage building would be built on the A new Sand/Salt storage building would be built on the site to store deicing materials.site to store deicing materials.

The Town Hall offices, including the court, would be The Town Hall offices, including the court, would be relocated into the main building area. This would relocated into the main building area. This would require the interior renovation of approximately 6,000.require the interior renovation of approximately 6,000.

Town Highway Garage Town Highway Garage Town Hall Relocation Renovation Town Hall Relocation Renovation

Estimated project costEstimated project costLand AcquisitionLand Acquisition (2 parcel) (2 parcel)$1,750,000$1,750,000

Salt/Sand Storage ConstructionSalt/Sand Storage Construction $ $ 72,00072,000Building RenovationsBuilding Renovations Interior selective demolitionInterior selective demolition $ $ 51,00051,000 General Construction, interiorGeneral Construction, interior $ $ 550,400550,400 General Construction, exteriorGeneral Construction, exterior $ $ 75,00075,000 Electric, Communication, GeneratorElectric, Communication, Generator $ $ 125,000125,000 Heating and air conditioningHeating and air conditioning $ $ 156,400156,400 PlumbingPlumbing $ 58,000$ 58,000

Construction subtotalConstruction subtotal$1,087,800$1,087,80010% contingency10% contingency $ 109,000$ 109,000

engineering, inspections, and contract administrationengineering, inspections, and contract administration $ $ 179,000179,000

Total Project CostTotal Project Cost $3,125,800$3,125,800

New Construction Cost ComparisonNew Construction Cost Comparison New Highway Garage & New Town Hall New Highway Garage & New Town Hall

Estimated project costEstimated project costLand AcquisitionLand Acquisition $ 400,000$ 400,000New Salt/Sand Storage ConstructionNew Salt/Sand Storage Construction $ 72,000$ 72,000

New Highway Building Construction (+/- 11,000 S.F)New Highway Building Construction (+/- 11,000 S.F) Site utilities, entrance, parking, and Storm WaterSite utilities, entrance, parking, and Storm Water $ 95,000$ 95,000 General ConstructionGeneral Construction $1,650,000$1,650,000 Electric, Communication, GeneratorElectric, Communication, Generator $ $ 110,000110,000 Heating and air conditioningHeating and air conditioning $ 156,000$ 156,000 PlumbingPlumbing $ 58,000$ 58,000

Garage Construction subtotalGarage Construction subtotal$2,069,000 ($188/sf)$2,069,000 ($188/sf)New Town Hall Building Construction (+/- 6,000 S.F)New Town Hall Building Construction (+/- 6,000 S.F) Site utilities, entrance, parking, and Storm WaterSite utilities, entrance, parking, and Storm Water $ 95,000$ 95,000 General ConstructionGeneral Construction $1,150,000$1,150,000 Electric, Communication, GeneratorElectric, Communication, Generator $ $ 125,000125,000 Heating and air conditioningHeating and air conditioning $ 156,000$ 156,000 PlumbingPlumbing $ 65,000$ 65,000

Town Hall Construction subtotalTown Hall Construction subtotal$1,591,000 ($265/sf)$1,591,000 ($265/sf)

10% contingency10% contingency$ 366,000$ 366,000Bonding, Legal, engineering, inspections, and contract administrationBonding, Legal, engineering, inspections, and contract administration $ $ 449,000449,000

Total Project CostTotal Project Cost $4,947,000$4,947,000

Previous Town Highway GaragePrevious Town Highway Garageand Town Hall Feasibilityand Town Hall Feasibility

• Since 2003, The Town has identified the need to Since 2003, The Town has identified the need to provide for a more desirable location and better provide for a more desirable location and better working conditions for its highway employees. working conditions for its highway employees.

• Previous feasibility project costs associated with Previous feasibility project costs associated with the Potential acquisition of land, and the the Potential acquisition of land, and the construction of a new highway facility complex construction of a new highway facility complex would be approximately $2,200,000.would be approximately $2,200,000.

• The Town also had previously considered the The Town also had previously considered the acquisition of the Millerton Elementary School acquisition of the Millerton Elementary School (MES) and conducting the necessary repairs to the (MES) and conducting the necessary repairs to the existing building renovating a portion of the existing building renovating a portion of the interior for Town Offices. Updated figures, interior for Town Offices. Updated figures, estimated the project cost to be over 2,200,000.estimated the project cost to be over 2,200,000.

Mitigating Factors Potentially AffectingMitigating Factors Potentially AffectingLong Range SpendingLong Range Spending

Landfill Remediation Project – EFC BondLandfill Remediation Project – EFC Bond

““Debt Service”Debt Service”

Original Bond Amount: $1,201,294Original Bond Amount: $1,201,294

Current Finance Amount: $95,000 annual paymentCurrent Finance Amount: $95,000 annual payment

Last Payment due October 2015 Last Payment due October 2015

$35,000 Town Budget Line item$35,000 Town Budget Line item

Project Tax Implications Project Tax Implications September 2015 September 2015

Total Project Cost = $3,150,000 Total Project Cost = $3,150,000 Acquisition, Construction Cost include Acquisition, Construction Cost include hard costs of construction plus soft hard costs of construction plus soft costs such as contingencies, engineering, costs such as contingencies, engineering, legal, and bondinglegal, and bonding

Financing Financing Bond $3.15 million @ 3.8% for Bond $3.15 million @ 3.8% for 2525 years. years.Annual payment = Annual payment = $197,398 $197,398Existing Debt Payment (2015)= Existing Debt Payment (2015)= $ 35,000 $ 35,000 Net Increase = $162,398 Net Increase = $162,398

($0.29/ $1000 of assessed value)($0.29/ $1000 of assessed value)$150,000 Valuation = $44.24 increase $150,000 Valuation = $44.24 increase

$200,000 Valuation = $58.99 increase $200,000 Valuation = $58.99 increase

Next Steps to ConsiderNext Steps to Consider Proposal is in the very early stages of developmentProposal is in the very early stages of development Project Referendum:Project Referendum:

Proposal is on November Ballot, allowing tax payers to be part of the decision process Proposal is on November Ballot, allowing tax payers to be part of the decision process regarding the project.regarding the project.

If referendum PassesIf referendum Passes Continue to Due Diligence.Continue to Due Diligence. Perform Environmental Phase II that includes subsurface soil, soil vapor, and potable Perform Environmental Phase II that includes subsurface soil, soil vapor, and potable

water testing. water testing. Perform Title Search of Property Perform Title Search of Property Continue to review project funding and bondingContinue to review project funding and bonding Continue with project development Continue with project development

Department Head and Employee interviews and meetingsDepartment Head and Employee interviews and meetings Continue to develop schematic designs of site and buildings.Continue to develop schematic designs of site and buildings. Develop contract drawings, bid and construct improvementsDevelop contract drawings, bid and construct improvements

If referendum FailsIf referendum Fails Town would need to take a step back and consider if other viable options exist and if it Town would need to take a step back and consider if other viable options exist and if it

is appropriate to pursue them. is appropriate to pursue them.

Capital Upgrades & Building Capital Upgrades & Building Improvements Improvements

New RoofNew Roof $ 400,000$ 400,000

Parapet and flashing repairs Parapet and flashing repairs $ 20,000$ 20,000

Site preparation, pavingSite preparation, paving $ 35,000$ 35,000

Sidewalk Repairs Sidewalk Repairs $ 15,000$ 15,000

Heating system Replacement Heating system Replacement $ 750,000$ 750,000

  

Interior office retrofit (4,000 SF @ $100 SF)Interior office retrofit (4,000 SF @ $100 SF) $ 400,000$ 400,000

SubtotalSubtotal $1,620,000$1,620,000

15% Contingency15% Contingency $ 243,000$ 243,000

Soft costsSoft costs $ 225,000$ 225,000

Total Project Cost Total Project Cost $2,088,000$2,088,000

Operation & Maintenance CostOperation & Maintenance Cost

Electric:Electric: 15% occupied15% occupied $18,000$18,000

Heating:Heating: 15% occupied15% occupied $40,000$40,000

Insurance:Insurance: $ 6,000$ 6,000

Systems MaintenanceSystems Maintenance $ 1,500$ 1,500

Facility MaintenanceFacility Maintenance $ 5,000$ 5,000

Outdoor MaintenanceOutdoor Maintenance $ 5,000$ 5,000

  

$75,500 Annually$75,500 Annually