TOWN BOARD MEETING

DECEMBER 21, 2006

A regularly scheduled meeting of the Town of Esopus Town Board was held on Thursday, December 21, 2006 at 7:30 PM in the Town Hall on Broadway in Port Ewen, New York with the following persons in attendance:

Supervisor John Coutant

Councilperson Gloria VanVliet

Councilperson Wayne Freer

Councilperson Michael Lange

Councilperson Deborah Silvestro

Guests: Planning Board Chairperson Roxanne Pecora

Charles Wesley, Clerk of the Works

Rob Wells

Zoning Board of Appeals Chairman Don Cole

P.E.F.D. Chief Paul Pitt

Library Director Kelly Tomaseski

Sal Silvestro

Patti Kowatch

Pledge to the Flag

Opening: The Town Board Meeting was called to order at 7:30 PM by Supervisor John Coutant.

1. Adoption of Minutes

A Motion to accept the November Minutes was made by Councilperson Michael Lange and seconded by Councilperson Wayne Freer. All Town Board Members voted in favor. Motion Carried.

2. Announcement of Decision of New York State Public Safety Commission

Supervisor John Coutant read the following:

"December 21, 2006

The Town of Esopus has received the final report from the State of New York Department of Public Service in Albany relative to their investigation of the gas explosion that occurred in Port Ewen on March 5, 2006. This explosion was responsible for the total loss of a house at 150 Main St. and considerable damage to property within the immediate area of the explosion and fire.

After ten months of investigation by the Office of Gas and Water, Safety Section has cited Central Hudson in violation of 16NYCRP 753-4.6(a) for failure to mark underground facilities accurately and with due care. Further more it states that an inspection of a gas valve box was inaccessible and in need of repair was not repaired within 90 days after the creation of an internal work order to do so. This is in violation of their Operations and Maintenance Procedure #1. Thus Central Hudson was cited for a violation of 16 NYCRR 255.603 (d). Basically not conforming to its own written operating and maintenance plan. Also the report advises Central Hudson that their personnel and vehicles be equipped with the proper tools to respond to gas emergencies.

As we can now see the first reports after the March 5th explosion indicating that the Port Ewen Water Department and the Town of Esopus Highway Department personnel was the responsible parties that created this disaster was incorrect and inappropriate.

In conclusion, I’d like to thank the personnel of the Town of Esopus for taking fast and appropriate actions to limit the loss of life and additional property damage which could have occurred on the evening of March 5th.

In addition, special thanks should go to the Port Ewen Fire Department and their staff of personnel who worked extremely hard that night and into the following day. They were assisted by a long list of department and personnel, too many in fact to mention them all tonight.

Lets’ not forget the efforts of the Central Hudson people who were there doing all they could to help to control the situation.

As Supervisor of the Town of Esopus, I am extremely proud of our staff of employees and volunteers for their hard work and efforts on March 5, 2006. I saw a true team effort from everyone who participated."

The news media has been given a copy of this statement.

3. Resolution to Borrow Additional $500,000

A preliminary Resolution was adopted at the November Meeting of the Town Board. The official Resolution is as follows:

TOWN RESOLUTION OF THE TOWN OF ESOPUS, ULSTER COUNTY, NEW YORK ADOPTED ON THE 21st DAY OF DECEMBER 2006, AUTHORIZING AN INCREASE IN THE MAXIMUM COST OF THE NEW TOWN HALL APPROPRIATING SAID AMOUNT, THEREFORE, AND AUTHORIZING THE ISSUANCE OF UP TO $500,000 BOND ANTICIPATION NOTES AND SERIAL BONDS OF THE TOWN TO PAY THE INCREASED COSTS OF THE PROJECT

Whereas, Section 210 of the Town Law of the State of New York empowers the Town Board of the town of Esopus Ulster County, New York (the "Town") to adopt a resolution subject to a permissive referendum for the purchase, lease, construction, alteration or remodeling of a Town Hall, a town lockup or any other necessary building for Town purposes and equipment and furnishing such buildings for such purposes, or to demolish or remove any Town Building; and

Whereas, the Town Board of the Town has determined that it is necessary for the Town to construct a new Town Hall (the "Project"), the total estimated cost of which was $5,900,000 and on July 21, 2005 adopted a bond resolution authorizing the construction of the Project and the issuance of serial bonds in an amount not to exceed $3,000,000 to pay a portion of the costs of the new facility; and

Whereas, the New York State Department of Transportation has designated a grant to the Town in the amount of $2,700,000 for the balance of the costs of the Project; and

Whereas, the actual costs of the Project have exceeded the original projections by approximately $500,000 and the Town Board has determined to increase the Project authorizations to cover the revised costs and to issue serial bonds to pay for the increased costs.

Now, Therefore, Be it Resolved, this 21st day of December 2006 by the Town Board of the Town of Esopus, Ulster County, New York (by favorable vote of not less than two thirds of said Board), as follows:

Section 1. The $5,900,000 maximum estimated cost of the Project as set forth in the Board’s resolution adopted July 21, 2005 is hereby increased by $500,000 to $6,400,000.

Section 2. The plan for the financing of the Project, as set forth in the July 21, 2005 resolution is amended to increase the authorized amount of bonds that may be issued by the Town for the Project by $500,000 to $3,500,000.

Section 3. The full faith and credit of the Town is hereby irrevocably pledged for the payment of the principal of and interest on the bonds as the same respectively become due and payable. An annual appropriation shall be made in each year sufficient to pay the principal of and interest on such obligations becoming due and payable in such years and such debt service payments may be made in substantially level or declining amounts as may be authorized by law. There shall annually be levied on all the taxable real property of the Town a tax sufficient to pay the principal of and interest on such bonds as the same become due and payable.

Section 4. Pursuant to Sections 30.00, 50.00 and 56.00 to 60.00, inclusive, of the Local Finance Law, the power to authorize the issuance of and to sell the serial bonds and any bond anticipation, notes in anticipation of the issuance and sale of the bonds, herein authorized, including renewals of such notes, is hereby delegated to the Town Supervisor, the chief fiscal officer. Such bonds or notes shall be of such form and contents, and shall be sold in such manner, as may be prescribed by said Town Supervisor, consistent with the provisions of the Local Finance Law.

Section 5. The Town Supervisor is hereby further authorized, at his sole discretion, to execute all agreements and instruments in order to effect the financing or refinancing of the specific object or purposes described herein, or a portion thereof, by a bond and/or note issue of said Town.

Section 6. The intent of this resolution is to give the Town Supervisor sufficient authority to execute those applications, agreements, instruments or to do any similar acts necessary to effect the issuance of the aforesaid bonds and/or notes without resorting to further action of this Town Board.

Section 7. The following additional matters are hereby determined and declared:

Pursuant to subdivision (a) of paragraph 11 of Section 11.00 of the Local Finance Law, the period of probable usefulness of the Project is thirty (30)

years; and

Current funds are not required by the Local Finance Law to be provided prior to the issuance of the bonds and any notes issued in anticipation thereof authorized by this resolution; and

The proposed maturity of the bonds authorized by this resolution will exceed five (5) years.

The Town reasonably expects to reimburse itself for expenditures made for the Project from the proceeds of the bonds or notes herein authorized.

This resolution is a declaration of official intent to reimburse for purposes of Treasury Regulation Section 1.150-2.

Section 8. Such bonds shall be in fully registered form and shall be signed in the name of the town of Esopus, Ulster County, New York, by the manual or facsimile signature of the Town Supervisor and a facsimile of its corporate seal shall be imprinted or impressed thereon and maybe attested to by the manual or facsimile signature of the Town Clerk.

Section 9. The Town hereby covenants and agrees with the holders from time to time of the Bonds and any bond anticipation notes issued in anticipation of the sale of the Bonds, that the Town will faithfully observe and comply with all provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and any proposed or final regulations issued pursuant thereto unless, in the opinion of bond counsel, such compliance is not required by the Code and regulations to maintain the exclusion from gross income of interest on said obligations for federal income tax purposes.

Section 10. All other matters, except as provided herein relating to such bonds, including determining whether to issue such bonds with a schedule of substantially level or declining annual debt service and all matters related thereto, prescribing whether manual or facsimile signatures shall appear on said bonds, prescribing, the method for the recording of ownership of said bonds, appointing the fiscal agent or agents for said bonds, providing for the printing and delivery of said bonds (and if said bonds are to be executed in the name of countersignature of a fiscal agent or of a designated Official of the Town), and the date, denominations, maturities and interest payment dates, place or places of payment, and also including the consolidation with other issues, shall be determined by the town Supervisor. It is hereby determined that it is to the financial advantage of the Town not to impose and collect from registered owners of such bonds any charges for mailing, shipping and insuring bonds transferred or exchanged by the fiscal agent, and accordingly, pursuant to paragraph c of Section 70.00 of the Local Finance Law, no such charges shall be so collected by the fiscal agent. Such bonds shall contain substantially the recital of validity clause provided for in Section 52.00 of the Local Finance Law and shall otherwise be in such form and contain such recitals in addition to those required by Section 52.00 of the Local Finance Law, as the Town Supervisor shall determine.

Section 11. The law firm of Trespasz & Marquardt, LLP is hereby appointed bond counsel to the Town in relation to the issuance of the Bonds.

Section 12. The validity of such bonds and bond anticipation notes may be contested only if:

Such obligations are authorized for an object or purpose for which said Town is not authorized to expend money, or

The provisions of law which should be complied with at the date of publication of this resolution are not substantially complied with and an action, suit or proceeding contesting such validity is commenced within twenty days after the date of publication, or

Such obligations are authorized in violation of the provisions of the Constitution.

Section 13. This resolution shall be subject to permissive referendum and a summary hereof (attached as NOTICE 1) shall be published by the Town Clerk as provided by Town Law Section 90. This Resolution shall become effective 30 days after its adoption pursuant to Section 91 of the Town Law. Following such effective date, in the event that no petition for a referendum was timely submitted and filed, the Town Clerk shall cause the publishing and posting of a notice in substantially the form provided in Section 81.00 of the Local Finance Law together with a summary of this Bond Resolution (attached as Notice II).

Wherefore, the foregoing Resolution was put to a vote of the members of the town Board of the town this 21st day of December, 2006, the result of which vote was as follows:

Board Member Vote

Supervisor John Coutant Aye

Councilperson Gloria VanVliet Aye

Councilperson Wayne Freer Aye

Councilperson Michael Lange No

Councilperson Deborah Silvestro No

Dated: December 21, 2006

4. Special Meeting to be held on December 28th at 7:30 PM to pay vouchers and discuss 2007 appointments

5. Payment of Bills and Adjustments of Bills

Resolution Authorizing the Payment of Bills Received Since December 2006

Be it Resolved, by the Town Board of the Town of Esopus, County of Ulster as follows:

Whereas, the Town of Esopus has been presented with vouchers for payment and these vouchers have been examined and approved by the Town Board,

Now, Therefore, Be it Resolved, that the following vouchers be approved for payment:

General Fund # 061696-061762 $ 44,147.87

Highway Fund # -062354-062390 $ 38,207.31

Capital Fund # 065041-065043 $ 12,867.05

Street Lighting # 066012 $ 4,323.20

Port Ewen Sewer # 063144 not used

#063145-063156 $ 8,065.40

Port Ewen Water #064286-064306 $ 7,535.62

Total..............................................................................................$115,146.45

Resolution offered by Supervisor John Coutant

Resolution seconded by Councilperson Gloria VanVliet

Supervisor John Coutant Aye

Councilperson Gloria VanVliet Aye

Councilman Wayne Freer Aye

Councilman Michael Lange Aye

Councilperson Deborah Silvestro Aye

Resolution duly adopted.

Resolution to Authorize Adjustments to the 2006 Budget

Dec. 2006

Be it Resolved, by the Town Board of the Town of Esopus in the County of Ulster as follows,

Whereas, the adjustments to the 2006 Budget are required in order to reflect changes in certain accounts,

Therefore, Be it Resolved, that the Town Board authorizes the transfer of the following amounts from the indicated accounts and fund balances to the indicated active accounts:

From: Amt. To:

A.599 $ 1,643.28 A.1010.1 $ 1,643.28

A.1110.2 $ 1,331.92 A.1110.1 1,331.92

A.599 $41,291.67 A.1220.4 780.33

A.1330.1 965.82

A.1420.4 6,832.46

A.3510.1 2,017.37

A.3620.4 250.63

A.6140.4 4,854.10

A.8020.4 4,663.00

A.8160.4 16,220.43

A.8162.4 918.02

A.9030.8 3,629.20

A.9045.8 160.31

DA.599 $ 4,547.11 DA.5111.4 4,543.71

DA.5120.4 3.50

SW 599 $3,030.46 SW 9060.8 3,030.46

Resolution offered by Supervisor John Coutant

Resolution seconded by Councilperson Wayne Freer

Supervisor John Coutant Aye

Councilperson Gloria VanVliet Aye

Councilperson Wayne Freer Aye

Councilperson Michael Lange Aye

Councilperson Deborah Silvestro Aye

Resolution duly adopted.

6. Interview of Candidates - Executive Session

A Motion was made by Supervisor John Coutant and seconded by Councilperson Wayne Freer to enter into Executive Session to interview candidates for the position of Maintenance Person at 7:55 PM. All Town Board Members voted in favor. Motion Carried.

A Motion to adjourn from Executive Session was made by Councilperson Michael Lange and seconded by Councilperson Wayne Freer at 8:30 PM. All Town Board Members voted in favor. Motion Carried.

7. Committee Reports and Correspondence for December are available in the Town Clerk’s Office.

The following reports of officials and boards have been received and are on file:

Town Clerk’s Monthly Report for November 2006

Planning Board Minutes for November 2006

Assessor’s Report for December 2006

Building Dept. Report for November 2006

Correspondence for the month of November 2006.

Public Comment:

Patti Kowatch: What is your best guess for the total cost of how much it will cost to build this Town Hall and what has already been spent? Supervisor Coutant answered 5.7 million dollars and $766,000 has been spent already. Patti Kowatch added all the numbers and she believes 6.7 million will be spent all together and she asked for the figures. Supervisor Coutant said the last figures from the bookkeeper are accurate. The amount of money we have spent and the amount to be used are....if you take 5.2 million which is what is available and add $500,000 which we intend to borrow...5.7 million is the total. The states is giving 2.7 million, we have already borrowed 3 million (this is in the bank) plus the $500,000 we hope to borrow it comes to 5.7 million. Patti Kowatch did not agree with this figure. Supervisor Coutant suggested Patti Kowatch, the bookkeeper and the Supervisor meet to discuss the figures.

The $50,000 figures we did not receive may be the money that was suggested as a reimbursement from NYCERTA on the geo thermal system. This amount may not be available now since so many people are using the geo thermal system.

Councilperson Freer did not believe we received the $50,000 promised by Senator Larkin which was a member item. This amount may not be available now. Supervisor Coutant and Councilperson VanVliet will meet with the Senator in January.

Supervisor Coutant had serious concerns about the permissive referendum. If a petition is filed and we must go to a vote the inflation figure will increase with the time spent and we will be in more of a bind.

Sal Silvestro: Sal asked if any thought had been given to going wireless? Roxanne Pecora, a computer analysis, said there was a serious security concern. Sal suggested having an expert look into this.

A Motion to adjourn was made by Councilperson Gloria VanVliet at 8:50 PM and seconded by Councilperson Wayne Freer. All Town Board Members voted in favor. Motion Carried.

Respectfully submitted,

Diane L. McCord

Town Clerk, CMC, RMC

Dist. 2 Dir. NYSTCA