August 9, 2012

The Annual Meeting of the City of Hornell Industrial Development Agency was held on Thursday, August 9, 2012, at noon, at 40 Main Street, Hornell, NY.

PRESENT: Samuel Nasca, Chair
George Prete, Vice Chair
Shawn Hogan, CFO, Treasurer
David Parmley, Asst. Treasurer

ABSENT: Joseph Foreman, Secretary

ALSO: James W. Griffin, CEO
Wanda White, Admin. Asst.
Wayne Drescher, Auditor
James Rahmlow, CPA
Christine Loman, Reporter
John Dagon, Attorney

Chairman Samuel Nasca opened the meeting at 12:00 PM.

MINUTES – In absence of Secretary Joseph Foreman, Chairman Nasca presented the minutes of the 6/27/2012 meeting. A motion was made by Dave Parmley, seconded by George Prete, to accept the minutes of the 6/27/12 meeting. Carried All.

FINANCIAL REPORT – Treasurer Shawn Hogan presented the financial reports for the months of June and July, 2012. A motion was made by David Parmley, seconded by George Prete, to accept the financial reports as presented. Carried All.

AUDIT COMMITTEE – Audit Committee Chairperson, George Prete presented the audit report for July 2012. He stated that the Audit Committee had met on 8/9/2012 and approved bills in the amount of $130,252.08. A motion was made by Dave Parmley, seconded by Shawn Hogan, to approve the actions of the Audit Committee. Carried All.

PERSONNEL COMMITTEE – No Report

GOVERNANCE COMMITTEE – Chairman Nasca stated that Carried All.

ANNUAL AUDIT – Wayne Drescher, the Agency's Auditor from Drescher & Malecki, presented the 4/1/11 – 3/31/12 Audit Report for the City of Hornell Industrial Development Agency. Drescher stated that the Audit was a clean opinion and no issues were found. Drescher also stated that the Agency had a strong cash position even in these hard economic times. After discussion of the Audit, Chairperson Nasca thanked Wayne for a job well done and asked for Board approval. A motion was made by Dave Parmley, seconded by George Prete to approve the 3/31/12 Audit. Carried All. Chairman Nasca also thanked James Rahmlow of Mengel, Metzger, Barr & Co., our internal auditor for their monthly assistance on the Agency's financials. Carried All.

ELECTION OF OFFICERS – Nominating Committee Chairman George Prete recommended the following slate of Officers to the Board:

Samuel Nasca – Chairperson
George Prete – Vice Chairperson
Joseph Foreman – Secretary
Shawn Hogan – Treasurer
Dave Parmley – Asst. Treasurer

A motion was made by Dave Parmley, seconded by George Prete to accept the slate of officers as presented. Chairperson Nasca requested the Secretary to cast one ballot for the 2012-2013 officers. Carried All.

APPOINTMENTS – Chairperson Nasca announced the appointment of Committees, as required by PAAA for the year 2012-2013:

Audit Committee – George Prete – Chairperson
Joseph Foreman – Member
Dave Parmley – Member

Personnel Committee – Shawn Hogan – Chairperson
George Prete – Member
Dave Parmley – Member

Governance Committee – Samuel Nasca – Chairperson
Shawn Hogan – Member
Joseph Foreman – Member

Chairperson Nasca also made the following appointments for 2012- 2013:

James Griffin – CEO
Shawn Hogan – CFO
Wanda White – Administrative Asst.

A motion to accept the appointments was made by George Prete, seconded by Dave Parmley. Carried All.

DESIGNATIONS - The following Designations for 2012-2013 were announced by Chairperson Nasca:

John Dagon – Agency Attorney
Harris Beach – Bond Consul
Dresher & Malecki – Auditors
Jim Rahmlow – MMB, CPA, Internal Auditor
Evening Tribune – Official Newspaper

A motion was made by David Parmley, seconded by George Prete, to accept the designations as presented. Carried All.

Chairperson Nasca summarized his annual report to the Mayor and the Agency. A motion was made by Dave Parmley, seconded by George Prete to accept the Chairperson's report as presented. Carried All.

Chief Executive Officer James Griffin summarized his annual report to the Agency.

Mayor Hogan stated that Alstom's downturn had been tough on our community but with Alstom now winning contracts and companies growing, the future looks brighter. He stated the IDA and the City would work together to make this a better community.

OLD BUSINESS

ALSTOM - Executive Director Griffin discussed with the Board, the lease the Agency has with Alstom. He stated the Agency had reached an agreement with a new lease forgiving lease payments totaling $1,050,000 per year over three years. In return for the new lease, Alstom would extend the option to terminate for three years. Regular lease payments would resume in July or 2015. The agreement also provided the Agency the option to purchase the Depot and the Apparatus Shop for $1 each. Griffin stated that he met with Alstom officials and they requested that we remove the Apparatus Shop from the agreement. Their strategic planning forecasts new operations in the near future for this plant. A motion was made by Dave Parmley, seconded by George Prete, to approve signing modification of the lease. The motion was duly put to a vote on roll call, which resulted as follows:

Samuel Nasca – Aye George Prete – Aye

Shawn Hogan - Aye David Parmley – Aye

The motion was duly carried.

Griffin stated that the Agency received Tax Exempt Bond allocations of $135,000 each year from New York State and the Agency transfers the allocation to SCIDA. A motion was made by George Prete, seconded by Shawn Hogan to transfer the $135,000 bond allocation to SCIDA. The motion was duly put to a vote on roll call, which resulted as follows:

Samuel Nasca – Aye George Prete – Aye

Shawn Hogan – Aye David Parmley – Aye

The motion was duly carried.

JACKSON LANE FENCING – Executive Director Griffin stated he had received three bids and in reviewing the bids, there was a difference in the quality of fencing so need to review bids on fencing specifications and will award to the low qualified bidder.

RBI PARKING LOT – Griffin stated the Agency signed a lease with Richard Brown d/b/a RBI Sport Pub regarding the parking lot at 68 River Street. The lease term is August 1, 2012, terminating July 31, 2015 with annual rent in the sum of $1.00 per year with Brown providing required liability insurance naming the IDA.

AIRPLANE – George Prete inquired as to the status of Jet Smart's Navajo airplane. Griffin stated that repairs should be finished in the next couple weeks. Griffin said he would be meeting with JET SMART to renegotiate a lease purchase agreement. He would then bring the agreement to the Board for approval.

There being no further business of the City of Hornell IDA, the meeting was adjourned at 12:50 PM upon motion from Shawn Hogan, seconded by Dave Parmley. Carried All.

Respectfully Submitted,

Joseph Foreman, Secretary
City of Hornell IDA