COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

FEBRUARY 9, 1996

 

 

ATTENDANCE:

 

B & A MEMBERS: Wishnie, LaMotte, Darcy, Young, Delfino, Abinanti

 

OTHERS: C.E.’s Office: Neil DeLuca, Jamie Hastings, Gina Angiulo; Budget Dept: Joe Phelan; WCMC: Ed Stolzenberg, Fred Miller; Planning Dept: Lynn Oliva; General Services: Susan Egginton; Law Dept: Sheryl Neaman, Gregory Meehan; Gannett: David McKay Wilson; WWA: Amy Paulin; Hospital Board: Steve Galef; Health Dept: Mark Rapoport, Karen Kelly; Legislators: Andrea Stewart-Cousins, Lois Bronz, Kay Carsky; BOL: Pat Gorski, Robert Boland, Tina Seckerson

 

Co-Chair Wishnie opened the meeting at 8:40 a.m.

 

Discussion: (There is a cassette tape on file for more detailed information)

 

Pep’e Fareri Lease Agreement:

 

  • Mr. Wishnie began the discussion stressing the importance of the lease agreement and the ultimate decision of the BOL. The message last year’s Legislature sent was to get out of the building although opting out of the lease early will cost the County $4 million. There is some thought now that it makes sense to continue leasing this building due to the close proximity to WCMC. The doctors need space to provide up to date treatments for patients. The BOL must decide what action they want to take on this lease, keep it as is, opt out, or refine it to get the best possible deal.
  • Dr. Rapoport stated that in the past few years we have seen an extraordinary reversal of the WCMC. It is his opinion that the Bradhurst building is an attractive building for doctors and patients, in close proximity to the Medical Center and ready to go. He feels that we can’t afford the time it would take to construct a new building as it would result in a set-back for WCMC. As far as the Health Department’s interest in staying in the Bradhurst building, he feels it is extremely well-suited for their needs. It is in a central location for people to get to and a satisfactory site for late night and weekend work which his staff often has to do. He stated that he is unaware of any other location for the Health Department to all be together and it would be detrimental to the operation of the Health Department to break it up. The Health Department works closely with WCMC on many matters such as Lyme Disease, TB, and Rabies and the proximity to the facility makes it much easier. The idea of moving is daunting to him as his department consists of 195 computers as well as staff. Any of the current moving scenarios would back up operations for six months or more and would be detrimental to their mission.
  • Mr. Wishnie stated that according to the old lease we are paying for 167,000 sq. ft.; after 12 months it went up to 210,000 sq. ft. He asked what is the actual amount of space being used and being paid for.

 

COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES - FEBRUARY 9, 1996

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  • Ms. Egginton stated that in the beginning we had 167,000 sq. ft. then it was their intention to relocate the data center there so as part of the agreement the landlord enclosed the parking lot which is 44,000 sq. ft. thus making up 210,000 sq. ft. Since the project was never approved the space was not built out even though we are now paying for that area.
  • Mr. Abinanti requested a copy of the C.O. as well a copy of the underwriters certificate..
  • Mr. Abinanti asked if the parking at the Bradhurst building meets the Town of Mt. Pleasant parking requirements. Commissioner Oliva stated that it does indeed meet the requirements of the Mt. Pleasant zoning laws.
  • Mr. DeLuca stated that the basement parking area was enclosed by the owner at the County’s request. In return the County leases the owner a piece of land to meet the parking requirements.
  • Mr. Abinanti asked if the County opts out of the lease if we get that piece of property back. Ms. Hastings responded that we do. Mr. Abinanti stated that if we take our piece of property back then the building would no longer meet the parking requirements. Mr. Meehan stated that all the owner would have to do to be in compliance is open up the enclosed area.
  • Mr. Abinanti asked for the Administration to provide information as to how much the owner is paying us for that piece of property.
  • Mr. DeLuca reminded that Committee that there were two buildings under consideration before leasing the Bradhurst building. (the other being in Tuckahoe). The Administration went to Bradhurst under the direction of the BOL at the time. Then, a new Board came in and was not happy with the Bradhurst building which brings us to where we are now.
  • Mrs. LaMotte suggested that anytime the Board is asked to look at a long-range proposal, there should be a timeline set by which to review it.
  • Mr. Delfino stressed his concern over how staying at Bradhurst or leaving would affect the possible PBC double A rating of WCMC. Commissioner Stolzenberg stated that there are 44 hospitals with double A ratings, none of which are in New York. He further stated that the likelihood of WCMC becoming a double A rated facility in the short-term is slight. He strongly feels that within a five year period he will be able to fill the building with doctors and medically related services. As for the other County departments staying in the building for another five years, it is an accommodation on the parts of the County and WCMC.
  • Mr. Delfino questioned the County’s role as an assignor if the Medical Center becomes a PBC. Mr. Meehan stated that when WCMC becomes a PBC they become assigned and the County no longer has a contingent responsibility. Mr. DeLuca stated that the intent of the language is to take the County out of the deal when WCMC gets the double A rating, although if the County chooses to they could become a tenant at that time.
  • Mr. Abinanti stressed his concern that the lease is not tailored to the medical community as it is slated as a 9-5 building. Mr. Stolzenberg stated that there is nothing unusual with the off hour uses being charged for.

 

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  • Mr. Abinanti inquired as the who would be responsible for maintenance costs. Mr. Stolzenberg stated that the standard maintenance costs are inclusive in the $18.50 sq. ft. charge. The HVAC use after hours is not included and therefore would be an additional charge.
  • Mr. Darcy asked what we will do in twenty years when this lease expires. He stated that he believes hospital space should be built or bought, not rented. Mr. Stolzenberg responded that as a hospital administration he would like to build an ambulatory facility but the time factor takes us too far into the future and he feels the hospital would miss the boat and never be able to recoup what it loses. The Commissioner further stated that we are at a time now when it is critical to switch from a dependency on in-patient services to out-patient services. Mr. Darcy replied that he would like to see us move in that direction but feels it would be hindered with a 20 year lease. The Commissioner stated that he views the hospital as a major business enterprise that has to compete with the Bronx and Manhattan otherwise we will be in trouble over the short term. He believes that the building in essence will be a revenue source not supported by tax levy.
  • Mr. Abinanti asked who will be responsible for paying for the buildout of the air conditioning system in the enclosed area. The answer was that the landlord will be responsible as part of the buildout costs.
  • In order to discuss specific issues and terms incorporated into the lease assignment on motion of Legislator Young, seconded by Legislator LaMotte, the Committee moved into Executive Session at 9:40 a.m.
  • At 10:10 a.m. on motion of Legislator Wishnie, seconded by Legislator LaMotte, the Committee moved out of Executive Session and resumed discussion.
  • Mr. Boland requested that the Committee be proved with a pro forma inclusive of the cost of insurance as well as electricity. Ms. Egginton stated that there will be some assumptions as there is no way to pinpoint those numbers now. but she will provide the information. She further stated that the doctors will pay for their own electricity.
  • Mr. Darcy asked if the buildout of the medical offices will be a standard buildout for all or custom buildouts. Commissioner Stolzenberg stated that anything beyond a standard buildout will be arranged between the specific doctor and the contractor or landlord.
  • Mr. Delfino asked if the Commissioner if he had any letters of intent. Mr. Stolzenberg stated that he could easily get them and that he specifically did not want to rent for more than 5 years at a time. Currently the Medical Center rents out about 70,000 square feet which would become support space for the hospital should this lease assignment be approved. Mr. Abinanti requested the Commissioner provide a plan for space use.
  • Mr. Wishnie thanked all of the representatives of the Administration for coming and the input and information they provided. He further stated that there was agreement among the BOL that it would be in their best interests to hire a consultant to review the lease. On motion of Legislator Abinanti, seconded by Legislator LaMotte, the motion to go into Executive Session at 10:24 a.m. for the purpose of discussing the hiring of a consultant was carried unanimously.
  • On motion of Legislator Abinanti, seconded by Legislator Young, the motion to come out of Executive Session and adjourn at 11:00 a.m. was carried unanimously.