LEGISLATORS: DELFINO, STEWART-COUSINS

MEMBERS: JAY BILOTTA (SANPORT SUPPLY), HAROLD VOGT (WEST. COUNTY CHAMBER OF COMMERCE)

STAFF: RODRIGUEZ, VITAGLIANO, KRISS, MORO (BOL)

GUESTS: GEORGE HOSEY (CHAIR OF CITIZENS BUDGET ADVISORY COMMITTEE)

The meeting was called to order at 3:10 P.M.

Gary Kriss explained that he had asked George Hosey to sit in on the meeting because he thought Mr. Hosey would be able to give some valuable input to the discussion on the bank questionnaire.

Co-Chair Stewart-Cousins reviewed the survey and thanked Harold Vogt for doing such a great job of putting it together.

Mr. Hosey agreed that the survey gives a good snapshot of what we need to ask the banks.

Co-Chair Stewart-Cousins suggested throwing it open for discussion. She was happy to see the statement on the bottom of the first page of the survey which requested a list be attached of the bank’s Westchester Community Reinvestment Act (CTA) outreach initiatives and programs with a brief description of each, and to include any special small and minority business programs; residential, neighborhood, inner city and central business district programs and any other community organization assistance and community investment initiatives that might apply.

Mr. Vogt stated that he had not been in touch with any banks, so he has no idea how difficult the survey would be for a bank to fill out

Mr. Hosey remarked that the banks just open up their books. The information is readily available to them. They just check their annual CRA report.

Co-Chair Stewart-Cousins inquired if this is sensitive information or is the CRA annual report public.

Mr. Hosey explained that it is all open to the public, the banks fought it but about five years ago it was made public.

Co-Chair Delfino asked if it would be appropriate to ask for it with the questionnaire.

Mr. Hosey thought that would be a good idea. He suggested the appropriate wording might be: Please attach a copy of your last public regulatory CRA by Federal Reserve or New York State.

Co-Chair Stewart-Cousins asked if someone judged them.

Mr. Hosey explained that they are rated, excellent, good, satisfactory and horrible. It gives their strong points and weak points. The banks in Westchester are proud of their ratings.

Aldo asked if it was appropriate to ask if the senior Management resided in Westchester to see if there was a correlation between that and the level of commitment of the bank.

Mr. Vogt indicated that he did not know if you could really measure the commitment of a bank based on if they live in Westchester or outside the County.

Mr. Bilotta stated that he felt the most important thing was that they recognize the community, as long as they do, he doesn’t care where they live.

Mr. Hosey suggested asking if the lending decisions are made in the County or elsewhere, like New York City or out of State. Sometimes they may be submitted in Westchester but approved in Long Island or New Jersey. He stated that a key question to ask is, to what extent are loans submitted for Westchester Applicants approved within the County as opposed to your Corporate Headquarters, and up to what amount & please specify residential, small business, or larger commercial.

Co-Chair Stewart-Cousins asked if anyone had any suggestions concerning the County’s current investment policy.

Mr. Hosey asked if the investment policy would be sent out with the questionnaire. He thought it would be a good idea because then the banks would not be able to say they are not aware what the investment policy is.

Co-Chair Delfino interjected that there would be no negative in sending it out.

Mr. Hosey suggested checking with the Finance Department first but he did not believe there would be any problem.

Gary stated that it is a public document, he did not think it was a problem either.

Mr. Hosey explained different types of loans and the different problems that went along with them. One major problem being that the small business are not aware that these types of loans are available.

Co-Chair Stewart Cousins inquired if there is anything we have as a County resource, like a newsletter for example that can get the information out there. She went on to ask if we could encourage the Economic Development Partnership to get involved with this.

MINUTES OF MARCH 27, 1997

Mr. Vote stated that he can bring it up at their meeting. He also stated that he would have the presidents of the bank associations take a look at the survey before we send it out.

Co-Chair Stewart-Cousins told Mr. Vote that we would make the changes to the survey then fax it to him the next day.

Co-Chair Stewart-Cousins reviewed the investment policy she received from Katy Tooher. It basically reflects the mergers and acquisitions. Katy highlighted everything we had to pay attention to. Co-Chair Stewart-Cousins stated that she would have a copy highlighted for everyone.

Mr. Vote referred to page two of the investment policy, which was regarding funds control. He asked about the parameters being used to allow a lot of latitude about who isn’t qualified.

Co-Chair Stewart-Cousins suggested they review the policy, write down any questions, then we can have the Finance Commissioner come in and explain it to us. She then went on to discuss the Council of the Arts.

Mr. Vogt mentioned the proposal made by the County Executive about there being a surcharge on hotel rooms and auto rentals to help finance. He brought it up because he has a Convention Business Bureau meeting tomorrow, and he is sure it will be brought it up. Why should finances of the Arts be put on those industries. It should be where the funding is returned to.

Co-Chair Stewart Cousins suggested maybe this Task Force could inquire if any more details will be forthcoming from the County Executive.

Gary agreed that we could ask what the anticipated scheduled time line for it would be so we can have an intelligent discussion.

Jay Bilotta stated that the Westchester residents feel that it wont effect them because they live in Westchester, they don’t stay in the hotels and they have their own cars, so they are not renting them here. So let the visitors pay, however, the visitors bring in a lot of money, we don’t want to deter them from coming into Westchester.

Co-Chair Stewart Cousins reviewed with the committee the survey done by the American for the Arts. She found it to be very interesting.

Harold Vogt stated that he may be able to get some additional research on this particular item.

Co-Chair Stewart-Cousins addressed the next agenda item, which was the labor agreement. Stating that we really haven’t done anything with it as yet but that will be coming. It is a really huge issue. She asked if Jay Bilotta had an update on it.

Jay Bilotta agreed that this item is huge. The opinion is, it seems to him, that what they are trying to do is make projects more affordable to a certain extent and they are incorporating unions, so every job in Westchester County that is a million dollars and over will be a union job. His position is that they will have unions coming out of the woodwork, more unions trying to get on these PLA programs. For example if he is doing a road job, his work force code is comprised of three unions, the Teamsters, Operating engineers, and Laborers. IF a small percentage of the project is to do some masonry work, where his laborers can do it, he would have to give it out to masonry, so that is an added cost. If he has to do any piece of wireing, he will have to get iron workers involved, so all of sudden your not saving money and not only that but you will have union workers trampling on eachother. His suggestion is that it be made for big money projects.

Harold Vogt agreed a million dollars is not big money.

Jay Bilotta went on to say that anybody who is not union will have to become union. He doesn’t think that it will be cost effective on such a small project. He stated that originally it was ten million dollars that the County Executive proposed. Somehow there was influence maybe by the unions to lower it down to a million dollars.

Co-Chair Stewart-Cousins asked if Mr. Bilotta saw a median point between the ten million dollars and the one million dollars, would five million be realistic.

Jay Bilotta went on to explain how the unions work. In Westchester County if you have a job that is over six million dollars, you have to use additional manning. The union tells them who they have to put on this job. If you have two escavators operating you have to have someone to watch those escavators, not do any work, just to be on hand, and you need a master mechanic who doesn’t do anything but make sure his operating engineers are being taken care of and then you need a shop steward who doesn’t do anything, he is just there to make sure there is peace on the job. Right there you are adding three more salaries. Who is going to pick up the tab, the County and the tax payers will. He feels making it on jobs that are ten million is really something to consider.

Co-Chair Stewart-Cousins remarked that there are some points which they may want someone to come in and talk to them about.

Jay Bilotta suggested having presentations and bringing in more Legislators to have a forum and vote on it.

Co-Chair Stewart-Cousins stated that she and Co-Chair Delfino will discuss it, it is a big deal.

On motion of Jay Bilotta and seconded by Harold Vogt the minutes of March 5, 1997 were approved by a vote of 3-0.

The Task Force set the next meeting for Thursday, April 17th at 3:00.

Harold Vogt motioned to close the meeting at 4:25, and was seconded by Jay Bilotta.