10/17/2003
The controversy over access permit fees has taken many sharp twists and turns over the past few days. Different area newspapers have covered different aspects of this evolving situation. You can catch up by reading the clips on our web site.
Let's summarize the situation.
On Monday, October 6, the Board of Directors of the Hudson River-Black River Regulating District met in Albany. Since the session was scheduled for 9:00 a.m. on a weekday, you might have anticipated a small turnout. But about 75 disgruntled access permit holders showed up, and 24 of them made statements. The meeting room was cramped, with seating for only 25. The rest of the folks were jammed into a narrow hallway, where they did the best they could to hear the proceedings. Some left in disgust. One standee was Assemblyman Jim Tedisco, who stayed through the first bunch of statements. In a remarkable show of self-control, nobody laughed when Board Chairman Timothy Noonan opened the meeting by saying: "We're not the enemy. We're on your side."
Chairman Noonan confirmed press reports that the permit fee schedule triggering the controversy had been withdrawn for further study. After that, the meeting was essentially a gripe session, with information flowing only in one direction: from permit holders to the Board. Board members just listened and made no response. Statements were limited to five minutes. After the public comment session was over, the Board conducted a short business meeting (partly in executive session out of public view). The District's lawyer announced that one case of litigation against Niagara Mohawk/Erie Boulevard Hydropower had been settled, but others were still pending. Details were not provided. (The District's 2003-2006 budget, now withdrawn for retooling, earmarked more than $1,000,000 for litigation against various energy firms). At the end, Chairman Noonan announced that the Regulating District would post new permit fee options on its web site "within the week."
That did not happen. Suddenly, the controversy had a new player with clout: the Governor's Office of Regulatory Reform (GORR). It pressured the Regulating District to collect more public input before announcing a revised permit fee schedule. To quote the District's web site (www.hrbrrd.com): "Currently, the Board and staff of the Regulating District are working to develop a sound proposal regarding permit fees on the Great Sacandaga Lake. As such, the Board and staff of the Regulating District will use the meeting scheduled on October 22, 2003 to receive additional community input prior to developing, and presenting to the public for review, proposed permit fees for the 2004 season. The meeting will be held at the Northville Central School on Bridge Street at 7:00 p.m."
GORR's web site (www.gorr.state.ny.us/gorr/) states that this office was created in 1995 by Governor Pataki "to improve the state's economic climate through a common sense regulatory policy and improved permitting processes." The Governor is quoted:"If you're getting the runaround or being unnecessarily hounded by one of our state agencies, call our Office of Regulatory Reform. We will intervene. We will take care of the problem. And we will do it fast."
It is likely that Governor Pataki himself asked GORR to intervene. The BBAC has highlighted the fact that the Governor appoints the five members of the District's Board and therefore "owns" the mess they have created. We know that he has received a barrage of letters and petitions. We also know that Senator Hugh Farley and other elected officials have gone to bat for us with him. In any event, the appearance of GORR is a positive sign. But we must not let up on the pressure. If we do, I guarantee that we will not like the results ... because the worst may be yet to come.
For this reality check, we owe thanks to Gary Heidenstrom, one of the permit holders who attended the October 6 board meeting. In his statement, he said essentially that if you think things are bad so far, you haven't seen anything yet. He advised attendees to take a look at a link on the District's web site (www.hrbrrd.com) titled "Hudson River Reapportionment Study." This 87-page study, conducted for the District by Gomez and Sullivan Engineers, P.C., of Utica, argues (page 2) that the District has statutory authority to assess the cost of operation of its reservoirs "upon any public corporation or parcel of real estate benefited. The cost to individual beneficiaries is to be proportioned based on the benefits received. Therefore, any corporation, individual property owners, municipalities, counties, and the State of New York can be assessed for benefits derived from operation of Great Sacandaga Lake."
Then, under "Recommendations" on page 22, the study states: "The benefits of increased real estate values for lakeshore property ... are significant enough to warrant further study prior to revising the District's assessment schedule of benefits. Although the District charges access permit fees for properties around Great Sacandaga Lake, these mostly cover the administrative cost of the program and not the benefit of flow regulation. We recommend that the District contract with New York State's Division of Equalization and Assessment Department or a real estate appraisal firm to determine the benefit of increased real estate values."
You can read more about this new outrage in the 10/11/03 DAILY GAZETTE story on our website. Incidentally, the District says on its web site (www.hrbrrd.com) that it is interested in your comments about the study. However, the District was not interested enough to tell you that the study exists and has been available for several weeks. It could have done this easily in the letter it mailed to all access permit holders on September 22.
At the Northville meeting, we obviously should be prepared to suggest ways for the District to cut its budget. But we also need to hammer home the point that even before the District made its ludicrous proposal to boost permit fees by 5-10 times, it was charged with mismanagement and incompetence. We need that situation to change. The Governor's Office of Regulatory Reform or Attorney General Eliot Spitzer should go over the District's new budget line by line to assure that individual items are legitimate and that increases are in line with inflation. According to media reports, GORR representatives will be at the meeting. That means your words will be heard by people who can make a difference. Take advantage of this opportunity!
Peter VanAvery