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Committee postpones vote on Ulster County Resource Recovery Agency service agreement after bonding-cap dispute
Summary
Committee members and UCRRA leadership disagreed over a proposed service agreement that would remove the agency's bonding cap; agency counsel advised the cap is illegal and agency board members resisted signing if the cap remained. After debate, the committee voted to postpone the resolution to allow further review and counsel input.
The committee postponed action on a proposed service agreement with the Ulster County Resource Recovery Agency (UCRRA) after extensive debate over whether the contract should remove a bonding cap that has limited the agency's use of bonds.
Justin Ryder, executive director of the UCRRA, said the agency had negotiated the draft service agreement with the county executive’s office and that the draft would remove a bonding cap in exchange for the agency giving up a net service fee. "The agency is willing to forego the ability of a net service fee if the county is willing to forego the bonding cap limit. The two go hand in hand," Ryder said. He added that agency counsel advised the cap is illegal and that the agency can operate without a county contract because it is a state benefit corporation.
Several legislators said they were uncomfortable removing the bonding cap without a clearer check by the legislature on large capital projects. Legislator Nolan said a bonding cap gives the legislature an opportunity to hold a robust public debate before big expenditures. Others, including Deputy Executive Laval and members of the committee, said increasing flexibility for the agency enables it to pursue projects and use bonding when appropriate.
A friendly amendment to insert an explicit contract term (expiring 05/31/2030) was proposed and accepted. After further discussion, the committee voted to postpone the resolution for one month to allow legislative counsel and agency counsel to review legal questions and to work toward a compromise. The clerk recorded the postponement motion as passing 4–2.
