city council meeting july 12 2010

8/9/2019 City Council Meeting July 12 2010

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Presque Isle City Council Meeting

Monday, July 12, 2010

5:00 PM

Presque Isle Council Chambers

AGENDA

Call to OrderRoll Call

Pledge of Allegiance

Workshop

1. Workshop regarding tax commitment

Recognitions

Public Hearings

2. Approve Malt, Spirituous and Vinous Liquor License applications for RT New EnglandFranchise, LLC, d/b/a Ruby Tuesday #7156, 830 Main Street, Aroostook Centre, D-14,Presque Isle

Citizen Comments

Old Business

3. Discuss Moratorium on First Floor Apartment in the Downtown business area4. Approve work and Loan (Donation) at Nordic Heritage Center5. Library Expansion Project:

a. Approve Project Budget and Scopeb. Authorize Bid Specifications for Bid Alternative for Energy Efficiency Improvementsc. Authorize City Manager to sign Escrow Agreement

6. Accept Brownfield Grant

Consent Agenda

7. Ballot for MMA 20102012 to Elect Member to Legislative Policy Committee8. Approve City Council minutes for the June 7, 2010 meeting9. Approve Warrants #21 -25 totaling $1,991,749.89

10. Approve closing City Offices, which are able, at 3:00 p.m. on Wednesday, July 21st to attendthe Citys Annual Wellness Picnic

11. Approve establishing a profit-sharing retirement plan in the form of the ICMA RetirementCorporation Governmental Profit Sharing Plan & Trust

New Business

12. Appoint Tenant Commissioner to Presque Isle Housing Authoritys Board ofCommissioners

13. Presentation of Tax Commitment and set 2010 Mil Rate,14. Analysis of Unreserved, Undesignated Fund Balance (Surplus)15. Updated Municipal Revenue and Expenditure Forecast


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16. Approve Purchase of 1998 Mack Truck from Muller Welding of Indianapolis, Indiana for anamount not to exceed $44,500

17. Approve Personnel Policy Changes:A. Per DiemB. Employee Appeal Process

18. Approve Management Response to Management Letter from Runyon, Kersteen, Ouellette asa result of the 2009 Audit

Managers Report

Announcements

Executive Session

Adjournment


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City of Presque Isle, Maine

12 Second Street Presque Isle, ME 04769-2459 207.764.4485 Fax 207.764.2501

The Office ofCity Manager

James A. BennettEmail: [email protected]

MEMORANDUM

TO: Honorable City Council

FROM: James A. Bennett, City Manager

DATE: July 8, 2010

RE: July 12, 2010 Agenda

Please note the 5:00 PM workshop starting time, a light meal will be available at 4;30

Please find the following introductory comments regarding the upcoming meeting. Theworkshop material is available under item 1 of your agenda notebook.

Public Hearings:

2. There is no issues that staff is aware of. Passage is supported.Old Business:

3. On May 3, 2010, the City Council enacted a moratorium that prohibited the creation of anynew first floor residential units within a smaller version of the downtown district. Further, theCouncil asked staff to seek input from various groups and report back with a recommendation.In an attached memo from staff, general support for the concept exists. There is also a sense a

broader, more comprehensive approach to the down town zoning is needed. Included in thepackage is additional information. The Council is being asked to decide which of two paths itwould like to see staff to take. It could instruct to draft an ordinance change that relates only tothis item; first floor residential units, and have it processed prior to the expiration of theexisting moratorium. The other direction is to extend the moratorium for 90 days to allow amore comprehensive recommendation to be considered at the same time. Please see thatattached information for more details.

4. Included in the package is a memo outlining a formal recommendation and request to allowcity staff to participate in the work that needs to be done at the Nordic Heritage Center as wellas a $15,000 donation/loan to the Center.

5. Included in the package are several documents that provide the background information for thethree components of this agenda item. Specifically, you will find a memo from Sonja, a memofrom me summarizing the information, a draft escrow agreement, a proposed overall budgetwith suggested funding sources as well as fixture and & furnishings budget. The bottom lineon the project, as currently recommended is that the entire project will cost the taxpayers lessmoney than if we simply had to upgrade the facility to better meet the ADA requirements.

6. Included in the package is the commitment letter regarding the $200,000 brownfield grant aswell as a memo from staff that outlines the various ways we believe that we can utilizingexisting City resources to provide the 20% match for the project without allocating any cash to


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meet the obligation. Based on that ability, I am asking the Council to support the acceptance ofthe grant. As of today, we have not heard back from Webber Oil on the letter written by DEPbut believe that the issue will be resolved.

Consent Agenda:

7. There are only two candidates for the two positions on the MMA LPC. Passage is supported.8. This is a standard business item. No introductory comments are necessary.9. Same as above.10.This has been done historically, as I understand it. Passage is requested.11.This is the formal paperwork that is needed to complete the transition of the retirement funds

from the Principle to the ICMA-RC account. This is only a formality given the Councilspolicy decision at a previous meeting.

New Business:

12.This is a policy decision of the Council and hence, no introductory comments will be made.13.The background information was provided to the Council in the workshop material.14.This information is contained within the package. No further action is necessary.15.Same as above.16.Please see the information provided within the package. Based on the recommendation of

staff, passage is requested.17.Included in the package is a memo covering each of the two items. The first item allows for

employees to elect to receive the IRS per diem meal reimbursement for travel instead of anactual reimbursement. In most cases, this will be a savings to the community. The secondcorrects the personnel policy that allowed employees to appeal personnel decisions to theCouncil, which is inconsistent with the charter. Passage is supported.

18.Include in the package is the written response by staff regarding the comments raise by theauditors. They have been forwarded to the audit committee. A motion to receive them andplace them on file is appropriate.


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PRESQUE ISLE CITY COUNCILMEETING OF JULY 12, 2010

AGENDA INFORMATION SHEET: AGENDA ITEM NO. 1SUBJECT:

Workshop regarding tax commitment.

INFORMATION:

Tax Assessor Lona LaFrancis provided article from International Association of Assessors and

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION: MH RS DG JT CH ES WE


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MEMORANDUM



DATE: July 8, 2010

RE: Tax Commitment Workshop

On Monday evening, you will meet at 5:00 PM, primarily to understand more about the taxassessment process. This informational meeting was requested as a result of being made aware of how

the current practice in making annual adjustments will result in shifting of tax burden, despite theCouncil and School Committee holding the line on the budgets. This memo is intended to provide theCouncil a more in-depth discussion about this issue.

Role of Assessor

The Assessor for each municipality plays an interesting role. While employed by the localcommunity, the primary responsibility is to the State. In fact, those positions have been described bysome, as agents of the State. It does not take a lot of thinking to understand the rationale for such legalrequirements; controlling the local assessments of property determines the amount of property taxes aperson would pay. Hence, the local assessor must comply with State law and related requirements.

The primary role of the Assessor is to determine the values for all real and personal properties inthe community, with the sole intent of equalizing the tax burden each person must pay. One of thefallacies that most people believe is that the Assessor must place a value on the home for what it is"worth." In truth, the Assessor attempts to place values on property so that all people with 'like'properties pay the same tax burden. To meet this obligation, the Assessor uses known sales ofproperty to establish a pricing schedule to reflect equalized value.

State Measures

To test the degree that a local Assessor is meeting this obligation of equalizing the tax burden,the State tests the actual sales against the local assessment. After eliminating all sales that are not

considered arms length transactions, the State will issue a report. An arms length transaction is onewhich a willing buyer and willing seller agree on a price based on acceptable value. The sale cannotbe influenced by other factors that would undermine the integrity of the sale, such as being relatives,or a sale during financial duress.

The State report will determine two items: The first will be how close the assessed value was tothe actual selling price. This is expressed as a percentage of the assessed value. The cumulative effectof sales for the year will determine the total ratio for the community. This is often expressed as thecertified value. To illustrate, if the City has 5 homes that are assessed at $100,000, but sold for an


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Tax Commitment Workshop July 8, 2010 Page 2 of 4

average of $112,000, we would have a certified ration of 89.28%. The second determination willmeasure how far away each of the sales are from the assessed value; also known as the 'standarddeviation' for those who understand statistics. To illustrate, if there were 10 homes that sold during theyear with 5 of those selling for $80,000 and 5 selling for $120,000, then the certified ratio would be100%. However, if you were living in a home similar to 5 that sold for $80,000, you would feel that

you were paying too much in taxes. Having 10 homes that were 20% off in value, would result in aquality rating that would let people know there are problems with the numbers, even though thecommunity would be at 100% certified ratio.

Changes in State Attitude

The creation of the Homestead Exemption several years ago, lead to some interesting changes inthe way the State reviewed local assessment practices. In the 1990s, the constitution was changed torequire the State to pay for 50% of all State-Mandated programs. Hence, when the homestead wentinto effect, each municipality received a check for 50% of the lost value to the community. It wasgenerally a common practice for a community to apply the homestead exemption, as well as other

exemptions, at full value. This would allow the maximum benefit to residents, as well asreimbursement.

In the dark days of the State budget crisis, the State has made it clear that it will only reimburseon the certified ration basis for all exemptions. Further, local assessors are expected to adjust theexemption values to reflect the certified value.

Local Situation

During the year (April 1, 2009 to April 1, 2010), there was new investment that equates to$11,725,000 of new local value. That value would be enough to allow the tax rate to stay the same($24.52), if we did not have to make any other changes. However, the sales that did occur during the

year have indicated that the values of the properties which did sell, still see an increase in the sellingprice, despite the national news of a housing slump. Hence, the certified value would drop from 95%to at least 88%.

The reduction in the certified value would require the Assessor to reduce the values of personalproperty (representing about 10% of the total City value), certain business properties, exemptions, andreimbursements from the State. Combined, these impacts would netout around $4,500,000 of thenew value. Therefore, despite the work of the elected bodies to reduce the budget to a nearly flat level,the actual tax rate would have to increase by about $0.25, or 0.52%. On the average home, it wouldmean about $20.00 more per year.

The reductions in the certified value are not occurring equally across all properties. The typicalhomes in the community continue to be stable in their value. In fact, this real estate continues to be the

most stable of all categories. That should not be a surprise. On the other hand, commercial propertiesand higher-end homes are not fairing as well. In some cases, a reduction of value has been demon-strated in the market.

In addition to the lowering of the certified ration, without the traditional adjustments by theAssessor, the quality rating of the assessing would worsen.


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Traditional Approach

In the past decade, the Assessor has made periodic adjustments to the costing schedules to betterreflect that which is going on in the market place. These adjustments have been done to keep theoverall certified ratio and quality ratings within the acceptable ranges according to the State. Morespecifically, they have kept those ratings at a high level. One of the direct results of these adjustments

is that it has postponed the expense of having a complete City-wide revaluation. Such are expensiveand often very divisive in a community.

Continuing that trend, Lona has prepared the commitment by making the same type ofadjustments. Generally, the adjustments involved increasing the value of residential land, the value ofthe typical home cost factors and reducing the cost factors for the higher end homes. Prior to theadjustments, the total value of the community was 54% residential and 46% commercial. The shiftwould cause approximately 5% of the value to leave the commercial side of the equation and end upon the residential side. It also adds another $28,000,000 of value to the total for the City, beyond thenearly $12,000,000 of actual new value.

This new value created by increasing the residential values will result in a $1.02 reduction in thetax rate. It is important to remember that this reduction in the mil rate does not translate into areduction in the tax bill for all. In fact, there will be very few residential tax bills that would bereduced. Almost every commercial tax bill would be reduced.

Change in Homestead Exemptions

This year, the State reduced the amount of the homestead by $3,000. At the old rate of $24.52,each residential taxpayer eligible for the homestead will pay an additional $73.56 as a direct result ofthe State budget crisis. This amount is over, and above, any changes due to the adjustments in value.

Impacts on Residential Taxpayers

It is difficult to predict, with certainty, the actual impact on each individual home. We can makesome general statements about the expected impacts: First, we know that there is approximately a 5%shift of the total tax burden from the commercial side. Based on the old ration of 54%/46%, theimpact would be 9.26% of additional cost (5% 54%). When combined with the impacts of thehomestead exemption reduction, residential taxpayers should prepare themselves for a 10% increase inthe actual tax bill.

Alternatives

It would be perfectly acceptable for the Assessor to not make any adjustments this year. That,however; would be a break from the traditional instructions and approach that has been used. Further,

such a step would all but certainly require her to make major adjustments in the next year. In addition,it would increase the likelihood of complete revaluation in the very near future. Should this alternativebe desired, staff can make those adjustments and process the tax bills accordingly. As a reminder, itwould increase the tax rate by $0.25.


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Future Consideration

In the near future, there needs to be a serious discussion about some sort of more formalizedrevaluation. If these were normal times, it could be as soon as next year (especially if the Councildecides to break with most recent tradition). One thing is almost for certain when a community doescomplete a revaluation process, they almost certainly do not have another for many years. While the

real estate market in Presque Isle has not fluctuated as much as other areas of the State and nationally,it probably is not the best to use the current market as the basis for the next decade or so of localassessment (if a revaluation was done in the next year or two).

In my opinion, there should no hard and fast decision made about a future revaluation in theimmediate future, until there is a better understanding of where the real estate market is going tofinally stabilize. At the same time, staff needs to be evaluating the different alternatives toimplementing a revaluation over the next six to twelve months.

Summary

On Monday night, the Council is holding the workshop to allow its members a better

understanding of the tax assessment role in determining the final tax bill people will pay. The processis complicated and usually misunderstood. It can be extremely frustrating, as well. This is particularlythe case when elected leadership has to work so hard to hold the line on the budget in anticipation ofnot asking any person to make out a larger check. Unfortunately, this is the exact position in whichthe Council will finds itself. The traditional approach that the Assessor has used, is considered thefairest and most progressive way to make adjustments. While the final decision on how to approachthis years assessment still remains exclusively in the hands of the Assessor, it technically is a toss ofthe coin on which way to proceed. If the Council wants to take the same course of action, there is noaction required. On the other hand, should it desire a different approach this year, the Council shouldvote to so during the workshop. Staff will then have the proper documentation ready for action at theCouncil meeting.


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2010 Assessors Report to CouncilValuation Changes

July 2010

Please know that for 2010, the assessor has made changes in the Citys assessed values. These

changes were made to correct inequities, to adjust for market value changes and to bring ouraverage assessment ratio closer to 100%. These changes were in addition to any value changes

made for new and/or incomplete construction and for value estimates that were made afterno response to requests for inspection.

The State Valuation report for 2010 states that our average developed parcel ratio was 80%, the

residential ratio was 79% and the commercial ratio was 86%. Using our TRIO program,

including current sales information, our residential ratio was 78.3% and our commercialratio was 89.2%.

As a reminder An assessment ratio is the assessed value divided by the sale price. Forexample, if a propertys assessed value is $90,000 and it sells for $100,000 the ratio is 90%.

Most properties have continued to sell for more than our assessed value.

If no adjustments were made to our cost schedules this year, we would have to certify at 88%

or below. Our homestead and veterans exemptions would have to be reduced to that ratio.

Business equipment values, tree growth rates and any other values that are reported to us at

100% would have to be reduced to that ratio.

After reviewing the sales ratio studies and considering the option of certifying at 88%, it

wasthe assessors decision to make multiple adjustments to our cost schedules. As a result of

those changes, our residential ratio increased to 87% and our commercial ratio increased to91%. This will allow us to certify at 95%.

Before any cost schedule changes were made, we had a net gain in real estate of

approximately $7,197,600. This included 8 new single family homes, 1 duplex, completionof the Oak Street condos/townhouses, completion of the Hampton Inn and TheriaultEquipment, a new Tractor Supply store, a new Grand Rental Station, a new veterinary

hospital and a variety of changes in incomplete construction and outbuildings.

We had a net increase in taxable and/or BETE reimbursed business equipment of $1, 692,

300.


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The 100% value of the homestead exemption was reduced by the State of Maine from $13,000

to $10,000. At 95%, this was a value reduction from $12,350 to $9,500. This shift from

exempt to taxable value increased our taxable value by $2,890,925.

This summary is not a complete list. The real estate numbers were taken from our LD1 list.

Some changes such as mobile home depreciation amounts, tree growth value changes andchanges in tax acquired property are not recorded on that list.

As a result of all the changes made, the Citys valuation base has increased from

$490,641,745 to $529,468,470. These changes should result in a reduction in the mil rate

of approximately 1 mil. This does not mean that taxes are going down. Most residential type

properties will see an increase in taxes, due in part to the reduction in the amount of the

homestead exemption, in part due to adjustments that were made to the cost schedules toimprove equity and bring us closer to 100% of value and in part due to a higher county tax, a

higher cost for MSAD #1 and less revenue sharing from the State of Maine.

Respectfully submitted,

Lona M. LaFrancis, CMA

Assessor


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Approve Malt, Spirituous and Vinous Liquor License applications for RT New England

Franchise, LLC, d/b/a Ruby Tuesday #7156, 830 Main Street, Aroostook Centre, D-14, PresqueIsle.

INFORMATION:

Due to changes in ownership (stockholders), a public hearing and City Council approval are

required. Copy of public hearing attached along with the cover page of their application.


Entertain comments from the public.


Be it resolved by Councilor , seconded by Councilor , to approve aMalt, Spirituous and Vinous

Liquor License applications for RT New England Franchise, LLC, d/b/a Ruby Tuesday #7156,

830 Main Street, Aroostook Centre, D-14, Presque Isle.


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LEGAL

PUBLIC NOTICE

CITY OF PRESQUE ISLE

In accordance with MRS Title 28A, Section 653, NOTICE IS HEREBY given that

the City of Presque Isle will hold a PUBLIC HEARING at 6:00 p.m. on Monday,

July 12, 2010, in the City Council Chambers, City Hall, 12 Second Street, to

consider an application for a Malt, Spirituous and Vinous Liquor License for RT

New England Franchise, LLC, d/b/a Ruby Tuesday #7156, 830 Main Street,

Aroostook Centre, D-14, Presque Isle.

All persons for or against this enactment may be heard if so desired.

ADA ASSISTANCE: Anyone needing special assistance at the City Councilpublic hearing, due to a disability, should contact the City Clerk at 764-2520 at

least two (2) business days prior to the meeting date.

Per order of

Nancy G. Nichols

City Clerk


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Discuss Moratorium on First Floor Apartment in the Downtown business area

INFORMATION:

Documentation provided in Memo form from City Planner James Francomano.



A.(Recommended) Be it resolved by Councilor , seconded by Councilor, to schedule a publichearing at the City Councils regular August meeting date to consider extending the duration of the

current moratorium on the creation of new dwelling units on the first floor facing a public way

between Maple and Blake Streets in the Retail Business Zone as recommended by staff.

B. (Not recommended): Be it resolved by Councilor , seconded by Councilor, to schedule two

public hearings at the City Councils regular August and September meeting dates to consideradoption of a new zoning amendment restricting or prohibiting dwelling units on the first floor

facing a public way within a portion of the existing Retail Business Zone (RBZ-1 or RBZ-2).


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CITY OFPRESQUE ISLE

MemoTo:

Presque Isle City CouncilFrom: James P. Francomano, City Planner

Cc: James A. Bennett, City ManagerKenneth C. Arndt, Planning and Development Director

Date: July 7, 2010

Re: Update onProposed new Downtown Retail Business Zone (RBZ-1 & RBZ-2)

STATUS OF MORATORIUMOn May 3, 2010 the City Council adopted a 180 day moratorium on new first floor dwelling units beingcreated in the downtown area. This ongoing moratorium is scheduled to end in October. The PlanningBoard discussions and other public outreach and discussion on proposed changes to downtown zoning

are making progress and have more than proved the City Councils ongoing moratorium worthwhile.

In order to adopt changes to downtown zoning before the end of the current moratorium the City Councilhas two choices:

A) the City Council may chose to extend the moratorium by an additional 90 days, by scheduling apublic hearing in August. The reason for the requested extension is presented below.

B) The City Council may wish to schedule public hearings for August and September on its own,without the benefit of a completed Planning Board recommendation for new zoning.

BACKGROUND

Last year the Planning Board requested that the Downtown Revitalization Committee (PIDRC) study thepossible negative effects associated with apartment dwellings being created in rental units historicallyused for office or retail purposes in the Downtown. Some of the perceived negative effects that the Boardand staff heard complaints about had to do with behavior of certain tenants, who were receiving guests orotherwise spending private time on the public sidewalks in front of their units.

By all accounts, these situations improve when Police Department patrols are called in. However somecomplaints focused on an underlying economic development issue: the long-term effects caused by theconversion of units suitable for small business into apartments in the first place. Is there a point when thebalance between office, residential and retail will have tipped too far?

An application to make such a conversion at 428 Main St. was reviewed by the Planning Board and ZBA

in February and March 2010, and generated considerable controversy. Also, staff has been advised by arepresentative of a new landlords association of members interest in making additional conversions of first

floor potential office/retail spaces to residential use.

ONGOING PUBLIC PARTICIPATIONPublic outreach and Planning Board discussion during the City Counci ls ongoing moratorium has clarifiedthe need for a change in the RBZ zoning requirements downtown. However with the added complexity ofthe two zone solution, staff now recommends that Council be prepared to extend the moratorium untilJanuary 2011 to allow time to complete the draft language and schedule additional public hearings.


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In comments received in connection with our May 20thpublic meeting at Governors restaurant were 17 infavor and 4 against prohibiting or restricting first floor apartments. Comments on other details were not soclear-cut. For example some people were uncomfortable at the thought of reducing the parkingrequirements for the entire downtown area. Interestingly though, this was only for dwelling units, notnecessarily for commercial uses, and was less of a concern for the very center or core of downtown.

Comments received back from fellow members of the Maine Association of Planners were unanimous insupport of the idea of carving out an area in the Downtown core and prohibiting first floor dwelling unitsfacing any public ways in that core area. Communities mentioned as having already adopted this policy

include: Biddeford, Camden, Caribou, Durham NH, Eastport, Topsham, Westbrook.

In response, Planning Board discussion has evolved to the point where two new zones are recommendedinstead of one. This solution allows the City to bring the maximum of new development potential into atightly drawn downtown core district and while also applying the prohibition on first floor dwelling unitsthere (in RBZ-1). Surrounding this, if approved, would be a new intermediate zone (i.e., RBZ-2).

This arrangement could be pictured as an egg yolk inside an egg white. If the City Council does not wishto extend the Moratorium then it may desirable to adopt the stricter requirements of the egg yolk orcenter area across the entire egg white or surrounding area, and to proceed on the basis of upcomingCity Council public hearings without the benefit of a Planning Board recommendation.

The exact performance standards for a possible RBZ-2 (the egg-white) have not be worked outcompletely yet as shown on the attached table of dimensional standards.

CONCLUSIONIn any event the goal is to ensure that there is no gap between the end of the Moratorium and theopportunity for the Council to adopt new zoning amendment to restrict or prohibit first floor apartmentsdowntown. Staff recommends continuing the process that is underway, waiting for a complete two -zonesolution as is currently being worked on by the Planning Board, and extending the Moratorium.

An extension of up to an additional 180 days is permissible under to M.R.S.A. Title 30-A 4356. Howeverstaff believes this zoning project is close to complete. Now that the public outreach has taken its coursewe are confident that a quality zoning amendment can be presented for the usual Planning Board public

hearing and ultimately for City Councils two public hearings with only 60 to 90 days added on.

RECOMMENDED MOTION A: Motion by ___________________, seconded by _________________, toschedule a public hearing at the City Councils regular August meeting date to considerextending theduration of the current moratorium on the creation of new dwelling units on the first floor facing a publicway between Maple and Blake Streets in the Retail Business Zone as recommended by staff.

MOTION B (Not recommended): Motion by ___________________, seconded by _________________,

to schedule two public hearings at the City Councils regular August and September meeting dates toconsider adoption of a new zoning amendment restricting or prohibiting dwelling units on the first floorfacing a public way within a portion of the existing Retail Business Zone (RBZ-1 or RBZ-2).


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Approve work and Loan (Donation) at Nordic Heritage Center

INFORMATION:

Attached is a memo from City Manager along with a copy of a press release.


Recommended for approval.


Be it resolvedby Councilor , seconded by Councilor , to support the City Managersrecommendation to provide labor, use of equipment and cash donation to update the Nordic

Heritage Center.


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MEMORANDUM



DATE: July 8, 2010

RE: Request to Allow City Work and Loan/Donation to Nordic Heritage Center

On June 2, 2010, Presque Isles Nordic Heritage Center was officially announced as host of oneof the two North American legs of the 2011 Biathlon World Cup events; the other is slated for Fort

Kent. The event was previously awarded to Lake Placid. The event will be held on February 4-6,2011; the following week, the event will be held in Fort Kent.

Economic Impacts

There is little doubt that there is a tremendous economic impact to the region because of theannouncement. One needs to look no further than the 2004 event held at Fort Kent. Published reportsindicate that event generated an estimated $5.2 million of economic impact in the St. John Valley.Further, it is estimated that approximately 50 million viewers watched several hours of the 17 hourswhich were broadcasted.

In Europe, the competition to be awarded IBU events, such as the World Cup is fierce,emulating, albeit on a smaller scale, the Olympic Hosting event. Reports from the 2008 IBU Congress

had small communities, such as Ruhpolding, Germany, a community of 8,500, estimated that the eventwould have the economic impact of nearly $15 million Euros ($21 million US) based on the previousfour events held over the last decade.

To further elaborate on the size of the event, there must be a continuous supply of power to theevent, including backup capabilities, in part to prevent the 16 to 20 active filming cameras for thebroadcast from ever having the potential of being unable to broadcast. It should be the single biggestevent to occur in our community in many years.

New Stadium Standards

As you are aware, the IBU standards are different today than they were at the time the facilitywas created. To be able to host the event, beyond the traditional challenges, there is a very limitedtime to make the changes necessary to host the event. The changes are primarily in the area of theshooting range. The simple change that is required, movement of the facility slightly away from thegrand stand and club house, is not inexpensive. The estimate to do all of the work has been set at$205,000.

Based on the previously supported City Council vote, I have been actively involved with thegroup working on making the improvements. Based on the plan, I am suggesting that the Cityinvolvement consist of three components. They are as follows:


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essentially an opportunity to meet the request without adversely impacting any other work, project orbudgetary intent.

It is the recommendation of my office that the City Council endorse this request.


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Library Expansion Project:

a. Approve Project Budget and Scopeb. Authorize Bid Specifications for Bid Alternative for Energy Efficiency Improvementsc. Authorize City Manager to sign Escrow Agreement

INFORMATION:




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MEMORANDUM



DATE: July 8, 2010

RE: Information Regarding the Library Expansion

On Monday evening, you will be asked to take three votes that essentially makes the libraryaddition and accessibility project a reality. This memo attempts to outline those steps and summarize

the highlights of the project and the process to date.The three votes are:

a. Authorize project budget and scope: the project involves four principle components: First,the project will provide an elevator which will greatly enhance the ADA compliance issues.Second, the building would include a 5,700 square foot addition. Third, the project wouldinclude upgrading fixtures and furnishings in the addition, including 15 new public accesscomputers. Finally, the project will take a hard look at replacing windows and upgrading thefront of the building to improve energy costs, if the return on the investment is reasonable.The total project is estimated to be $1,490,000, including a $100,000 contingency. The twooptional items: $165,000 for energy efficiency investments and the $49,930 forfixtures/furnishings are not included in that number. If included, the project would be

slightly over $1.7 million or $1,704,930. The funding for the project, including allalternatives would be $240,000 from taxpayers, $165,000 from energy savings (ifobtainable), $1,049,930 from private donations and $250,000 from the Library Trustees.This is discussed in more detail below. A motion to authorize the project budget and scope isnecessary for the project to proceed.

b. Authorize bid specifications for energy efficiency improvements: the plan is to include as abid alternate, the specifications to upgrade all of the windows in the old part of the buildingand fix the front outside wall, to improve energy efficiency. The Council would then havethe actual cost to make those improvements in order to judge whether it makes sense to makethe investment. The pre-design estimate is that the cost will be $150,000. The pre-designestimate on the pay back of that investment is still being calculated. We expect to be able to

share that information on Monday night. In order to prepare the bid documents, it isestimated that another $15,000 of architect and engineering costs are required. The Councilneeds to decide if it would like to invest that $15,000, based on the pre-design estimates. Amotion to authorize that work is desired, should the Council believe that the investment isworthy.

c. Authorize the City Manager to sign the Escrow Agreement: since the last meeting, I havebeen working with the major donors (Mary Smith) agent to work through the terms of anEscrow Agreement that would protect the two parties. Included in the package is a draft of


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Information Regarding Library Expansion July 8, 2010 Page 2 of 3

the Agreement. It is not in final form. It is, however, substantially complete. TheAgreement would ensure that the $1,000,000 is actually in the escrow account prior to theawarding of the bid for the construction of the project, protecting the City. It would providea working/partnership basis between the City and the donor to make sure that the project isnot substantially changed during the construction in such away to completely change the

intended project in substance and presentation. It would provide assurances that the projectwould be completed in a timely fashion. The signing of the Escrow Agreement is a criticalstep in minimizing the financial impact on the project. The Council is being asked toauthorize me to sign the Escrow Agreement, substantially in the form present, on behalf ofthe City.

Project History

In 2002, the City Council authorized a building committee to deal with the issues of the library.One of the first issues tackled, was that simply adding an elevator to the building would cost between$250,000 and $300,000, depending on whether the shaft for the elevator was inside the building oroutside. In todays cost, the elevator alone is believed to be $300,000 , if internally built and upwardsof $400,000, for an external addition. The recommendation was to proceed with an addition.

Originally, conceived as a 6,900 square foot addition; the addition was reduced to a 5,700 square footaddition to reduce the cost. This scope of the project was generally accepted as the preferred plan,awaiting the financial ability to proceed.

Once the donation offer of $1,000,000 was made, there has been further investigation todetermine if there are other deficiencies within the current building. There are three major challengesthat have driven the cost of the original project upwards: First, there is a clear need to sprinkle thebuilding. We have requested, and the Water District did stub in a new, larger water main to the siteprior to the most recent payment. Second, the electric power has to be upgraded to three phase power.We have received a question regarding the potential for a demand charge as a result of that upgrade.We do not believe it will be the case, but we are working to positively affirm that position. Finally,there is now a requirement to have direct ventilation in public buildings which will require someretrofitting of the existing building. These three items in their entirety is expected to increase theoverall project cost by $75,000.

Project Status

A revised Building Committee meeting was held on June 28. Councilors Emily Smith andRandy Smith were both able to attend. At that meeting, all parties felt that there were enough answersto the larger questions to proceed to bring the project scope and funding to the Council. Subject to theaffirmative vote by the Council on the three items, the project will move immediately into the biddocument preparation stage. During that time, the revised Building Committee will continue to makesome final decisions on smaller related issues that would not impact the project budget, such as wherethe interior offices be located. The goal is to have the project out to bid by the end of the sum-

mer/early fall. It is strongly recommended that this bid time frame be followed. It is generallyaccepted that preferred pricing will occur on projects that are out to bid during that time frame, asopposed to those that will be out to bid in the winter/early spring period. The Trustees have voted thatthe first of part of their contribution for the project will be to pay for the bid work.

There is one outstanding issue that we are trying to resolve at this point. I am trying to make adetermination if a Clerk of the Works will be necessary on the project. If so, do we have the in-house talent and time available to make that happen at no additional cost? Further, the ultimate final


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Information Regarding Library Expansion July 8, 2010 Page 3 of 3

decision on whether to use a 'Clerk of the Works' and at what level of involvement, will be highlydependent on the firm that is awarded the project.

I will finalize the Escrow Agreement and proceed to ensure that the $1,000,000 donation is madeaccordingly. Staff will begin the aggressive campaign to raise the remaining amounts of fundingneeded.

Funding SummaryThe proposed budget is included. As earlier identified, there is a direct relationship between

some of the funding sources and the expenses. For the overall upgrades, the direct City contribution isestablished at $240,000, which is less than the cost of doing the elevator as a standalone project. In thefinancial forecast provided by Pat, she has included an 8-year, 4% principle loan in the amount of$435,000, which would result in a $63,000 payment. For the $240,000 loan, it would result in a$35,000 payment. Further, the Council has received the fund balance analysis for another agendaitem, showing in excess of $760,000 available beyond minimum requirements. I would suggest theCouncil consider either using some of those funds to pay for the City share or extend the loan to atleast a ten year payback. If the Council decides to add the engineering costs for the bid documents toinclude the energy efficiency upgrades, and does not decide to award the bid, another $15,000 willhave to be added to this amount.

The total $165,000 of energy upgrades, if awarded, is assumed to have a reasonable pay back.Hence, the impact of that decision is expected to be zero, if aligned with the payback period. In otherwords, the funds would be available in the reduction on the cost for energy that would have otherwisebeen spent in the budget. No further impacts are needed for the purpose of this discussion for thefinancial consideration. On the practical side of the discussion, the Council will either have toauthorize some sort of debt or internal loan in order to provide the upfront costs associated with theannual savings. This decision will be made at the time of the awarding of the bid.

The targeted fund raising of $49,930, is directly to pay for the fixture and furnishing budget. Ifthe project was not moving forward, then these funds would not be necessary. Hence, it is my

recommendation that we seek non-taxpayer funds to make this possible. If the fund raising falls short,the budget for these items would be reduced accordingly.

The balance of the project would be paid for by the Library Board of Trustees and the MarySmith Donation.

Summary

Through the tremendous gift of Mary Smith, the library expansion and accessibility project nowappears to be one that can be accomplished. Further, it can be done at less taxpayer involvement thanthe simple accessibility project. Also, it appears that the proposed bidding schedule will position theCity at the best time in recent memory to being doing a project. Finally, there appears to be severalviable options for the Council to consider for funding the Citys share of the project without having

significant impacts on property tax payers.Given all of these reasons, it is my recommendation that the Council proceed with each of the

three agenda items as prepared.


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To: Presque Isle City Council

From: Sonja Plummer-Morgan, Librarian

Date: July 12, 2010

Re: Rationale for Proceeding with Library Building Project

The library provides expert assistance and access to specialized electronic and print

resources with a broad subject area to our community members. Information is offered

in many formats including print materials, multimedia, electronic, archives, microfilm,

and in several languages to reflect cultural diversity. We serve all ages and socio-

economic circumstances of persons in the community and demonstrate a respect for

tradition while embracing the future. With approximately 58,000 materials to loan,

remote access to our electronic resources, over 66,000 downloadable books, and

personal help with trained, helpful staff, we meet the informational, recreational,

literary, and cultural needs of our community as indicated in our Vision and Mission

Statement.

Service responses or aspects include basic literacy, consumer information, cultural

awareness, lectures, performance and exhibit space, meeting room space for areanonprofits, discussion forums, employment resources, internet work stations,

foundation grant databases and printed collections, 434 passport applications were

processed, programs on maintaining healthy lifestyles, parenting and childcare events,

access to government documents, wireless internet access, interlibrary loan,

documents, local history and genealogical data, displays, community bulletin board,

family literacy programs, homework after school tutors, instructions for using new

technology, small business information, and public gathering space. In 2009, 7,586

reference questions were asked and answered. Librarians help sort through the

massive, global access to information into something relevant to our locale andindividual needs.

The library also provides online, in person, and real-time text reference and referral

services and collaborates with several area organizations to magnify our value to the

community and share resources. We are in a continuous transformation process to be

more efficient, respond to the needs of our community, and assess our activities to


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remain relevant. Outreach is another important service response and examples of this

include job fairs, parades, technology fairs, health fairs, classroom visits during the

school year and public speaking engagements.

10 Reasons to Proceed with the Library Project

1. After several months of Building Committee review and discussion, the Project wasscaled down from the needed 6,900 sq ft to more affordable compromise at 5,700 sq ft.

The expansion of the building provides a service response that allows more people to

attend cultural, artistic, and literary events.

2. Several different scenarios were researched including adding an elevator in the existingbuilding. It is nearly double the cost of an exterior elevator and it sacrifices building

space which is already inadequate to meet Life Safety Codes and ADA compliance.

3. Building experts report competition for contracts is high and competitive pricing likely.4. In four years, the cost of building materials and labor has increased 22%. The cost of a

completed building of 5,700 sq ft in August 2006 was estimated at $1,167,000. The cost

of the same building four years later is $1,490,000.

5. Approximately 83% of the project is funded by donations and Library Board of Trustees.6. The library is not fully accessible by those who have mobility issues. Rehabilitating

current facility, installing a passenger elevator, and increasing space capacity helps us

address and solve the ADA Compliance issues that exist.

7. In 2009, 54,991 persons walked into the library to use our information, cultural, andrecreation services.

8. Our computers or wireless internet connection was used an estimated 37, 353 times. Atpeak times, there is a waiting list and wait time to use our computer terminals.

Electronic databases and ebooks are increasingly important but printed matter remains

in high demand. 42,990 items were checked out of our library in 2009.

9. Over 4,500 persons attended programs at the library in 2009 while the building capacityat any given time is approximately 150 persons.

10.Rehabilitating current HVAC systems will allow for smarter energy use and make thelibrary eligible for refunds by Efficiency Maine for upgrades.


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Sheet1

Budget Total

Two ADA-approved computer kiosks $2,000Display case $700Two Tables with seating for 4 $2,500Twelve kiosk chairs $3,000

Total $8,200

Stacks (bookshelves) $9,500Book Carts/trucks $500

$10,000

Safety & SecurityCameras, Maintenance, Installation $15,000Telecommunications $1,000

Total $16,000

MiscellaneousOutdoor Ash/Trash Receptacle $980Loose Furnishings $1,000

Contingency $2,500Total $4,480

Public ComputersNew/Replacement Computers 15 x $750 $11,250

Total $11,250

Total Expenses $49,930

Mark & Emily Turner Memorial Library7/6/2010 Loose Fixtures & Furnishings Budget Proposal

Category

Interior Design and Finishes

Book Stacks & Shelving

Page 1


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Emily & Mark Turner Library in Presque Isle, Maine

Proposed Addition and ADA Compliance Project

Expenses RevenuesBuilding & Site

Building Addition (est at $157 per sq ft) $895,000 Library Trustees $250,000

Elevator $70,000 Mary Smith Donation $1,000,000

Sprinkler System $75,000 City ref ADA $240,000Ventilation System $80,000 City ref Energy $165,000

Tie In & Require Renovations to Exising Bldg $105,000 Subtotal $1,655,000

Site work $40,000

Subtotal $1,265,000 Additional Fund Raising $49,930

Administrative Costs Revised Total Cost $1,704,930

Architectual/Engineering Fees $120,000

Advertising, Testing, & Printing $5,000

Subtotal $125,000

Reserve

Continguency $100,000

Subtotal $100,000

Total Project $1,490,000

Bid Alternatives, Other

Energy Savings (Windows & Flashing) $150,000

Fees associated with Bid/Alternative @10% $15,000

Fixtures, Furnishings $49,930

Subtotal $214,930

Revised Total Cost $1,704,930

7/8/2010


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DONATION AND ESCROW CONTRACT

THIS CONTRACT, made in duplicate original, to be effective this ___ day of

_________, 2010, by and between MARY SMITH, of Portola Valley, California (the Donor)

and THE CITY OF PRESQUE ISLE, a municipality located at Presque Isle, Maine (the City).

Whereas, the City is desirous of expanding and improving its Library (the Project) the

Mark and Emily Turner Memorial Library, (the Library); and

Whereas, the Donor is willing to donate to the City the sum of $1,000,000.00 to assist in

the funding of the Project upon the terms set forth in this contract; and

Whereas, upon the execution of this contract, the Donor is willing to deliver the

Donation into escrow in Presque Isle, Maine prior to the start of construction.

Now Therefore, in consideration of the mutual promises contained herein the parties

contract as follows:

1. Upon his acceptance, Richard C. Engels Esq. shall act as Escrow Agent under

this contract. It is acknowledged that he is the attorney for the Donor, but he is authorized to

perform his duties as Escrow Agent in accordance with the terms of this contract

notwithstanding his duty to the Donor.

2. The Donor shall deliver the Donation to the Escrow Agent to be held according to

this Contract. During the escrow, the donation shall be held in an interest bearing account in

KeyBank, N.A., in Presque Isle, Maine or such other Presque Isle, Maine bank as the parties

may agree. At the end of the escrow interest earned shall be paid to the party receiving the

remainder of the escrow. During the escrow, for tax purposes, the escrow account shall be

held in the name of the City, but the City agrees that its rights in this account are subject to this

Contract and that only the Escrow Agent shall have authority to make withdrawals or

investment decisions, as to the type of bank account.


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3. The Donor shall be consulted with during the preparation of the final plans

specifications and cost projections for the Project and shall have the right to review and along

with the City approve them. Her review and approval of the final plans, specifications and

projected costs shall be done in a reasonable manner. Construction shall not commence unti

full funding of the project has been secured.

4. The Donor shall be informed of any changes to the Project during construction

shall be consulted about any change that would result in a material change to the project or

increase its cost, and shall have the right along with the City to approve such a materia

change. Her approval of a material change shall be done in a reasonable manner.

5. Subject to the other provisions of this Contract, after final acceptance of the

Donation by the City, and the expenditure by the City of the difference between the projected

cost of the Project and the Donation, the Escrow Agent shall start to disburse the Donation.

The City shall provide to the Donor and the Escrow Agent reasonable verification of the

required City expenditure. Disbursement to the City shall be made on the presentment to the

Escrow Agent of invoices for amounts due on the Project less any agreed upon hold back from

the contractor. Upon presentation of an invoice the Escrow Agent may make disbursement to

the City without the need to inquire further as to the validity of the requested payment or thenecessity of verification of the proper application of the disbursed funds by the City. This

Contract and the Escrow Agents duties shall terminate upon final disbursement of the

Donation and accounting by the Escrow Agent.

6. If the entire Donation is not needed for the construction of the Project, then the

Escrow Agent shall disburse the remainder of the Donation for such Library purposes as are

determined jointly by the Donor and the Librarys Trustees. Upon full disbursement of the

Donation, the City shall be responsible for the payment of any additional sums, including cost

overruns, necessary to complete the Project.

7. The City agrees that it will pursue the completion of the Project in good faith

The Donation or the remainder thereof shall be returned to the Donor if construction is not

commenced by June 30, 2011 and substantially completed by __________ or if the Project is


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abandoned by the City. The times set forth above can be modified as a result of conditions

and events beyond the control of the City, such as war, fire, strikes, etc.

8. Upon completion of the project, suitable recognition shall be given to the Dono

and her family in a form to be agreed upon prior to the start of construction by the Donor and

the Library.

9. The Escrow Agent shall provide to the parties copies of bank statements

received by him in a timely manner, and upon termination of the escrow or earlier upon written

request, provide the parties an accounting of the escrow.

10. Upon being notified in writing by either the Donor or the City that there is a

dispute between them, the Escrow Agent shall cease disbursal of the donation until he is

notified in writing by both parties to resume disbursements. or being so ordered as a result of

an arbitrary proceeding.

11. The Escrow Agent is hereby exonerated from liability for breach of duty except fo

any breach committed dishonestly, with improper motive, or with reckless indifference to the

purposes of this Contract. The parties, jointly and severally, agree to reimburse Escrow Agentfor any expenses, including attorney fees, that escrow agent incurs as a result of any lega

proceedings other than criminal proceedings affecting this escrow agreement or the

performance of Escrow Agents duties.

12. For the services contemplated in this agreement, Escrow Agent shall be paid

jointly by the parties at his normal rate for legal services, currently $175.00 per hour, plus

expenses.

13. The Escrow Agent may resign upon 30 days written notice to the parties and the

bank where the escrow is kept. The parties may remove and replace the Escrow Agent,

without cause, by written notification to the Escrow Agent signed by both parties. If the

Escrow Agent is replaced then a successor escrow agent shall be designated in writing jointly

by the parties, and the designation shall be delivered to the replaced Escrow Agent and to the

bank where the escrow is kept. Upon notification of a successor Escrow Agent, the escrow


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agent shall deliver his records about the management of the escrow to that person designated

by the parties.

14. Each party agrees that in the performance of its obligations under this Contract i

shall act with good faith, fair dealing, and with commercial reasonableness.

15. This Contract may not be assigned or transferred by either party directly o

indirectly without the written consent of the other.

16. In the event of a dispute between the parties, they shall first attempt to settle the

dispute informally between themselves. If an informal resolution cannot be arrived at, then eithe

party in writing may request mediation. The parties shall engage a mediator acceptable to both o

them and attempt in good faith to mediate the dispute. If mediation is not successful in resolving

the dispute, then either party may demand the dispute be arbitrated. Arbitration shall be

commenced by written demand of either party to arbitrate. The parties may agree upon the

arbitrator and the procedures governing arbitration. If no agreement can be reached, then the

arbitrator and the procedures to be used shall be governed by the rules established by the Maine

Uniform Arbitration Act. The determination resulting from the arbitration shall be binding upon

both parties. Either party may apply to an applicable court of law to have a judgment enteredupon an arbitration award. The cost of mediation and arbitration shall be shared equally by the

parties. Mediation and the arbitration shall be the exclusive remedy of the parties to resolve

disputes or claims between them arising out of this Contract or its performance.

17. The laws of the State of Maine shall govern this Contract. Any legal action

concerning this Contract of its performance shall be brought in the Superior Court of the State of

Maine with venue in Aroostook County, Maine. If a court should find any provision of this

Contract void or not enforceable, the remainder of this Contract shall remain in full force and

effect.

18. The failure of either party to enforce any right or remedy, which the party may have

under this Contract because of a breach or default by the other party, shall not be considered to

be a waiver of the right of a party in the future to enforce their rights or remedies upon

subsequent or continued breach or default by the other party.


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19. This Contract constitutes the entire understanding of the parties about its subjec

matter. It supersedes any and all prior negotiations and agreements between them. This

Contract shall be binding upon and inure to the benefit of the successors, assigns, conservators,

personal representatives, heirs, and devisees of the parties. This Contract may only be modified

by a written amendment signed by all parties.

IN WITNESS WHEREOF, the parties hereto have duly executed this Contract to be

effective the date and year first above written.

_____________________________ _________________________WITNESS Mary Smith - Donor

The City of Presque Isle

_______________________________ By: _______________________________WITNESS Its: ____________ hereunto duly authorized.

Richard C. Engels Esq. hereby accepts the duties of Escrow Agent as provided for in thisContract.

_______________________Richard C. Engels


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Accept Brownfield Grant

INFORMATION:

Attached is a copy of the agreement for the Brownfields Cleanup Grant program along with a

memo from Solid Waste Director Dana Fowler regarding the Webber Oil Company property site

clean-up cost estimates.



Be it resolved by Councilor , seconded by Councilor , to accept the Brownfield Grant.


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M E M O R A N D U M

TO: James A. Bennett, City ManagerCC: Larry Clark, PIIC; Gerry James, PIPW

FROM: Dana H. Fowler, Solid Waste Director

SUBJECT: Webber Oil Company Property Site Clean-up Cost EstimateDATE: July 1, 2010

OBJECTIVE: The objective of this memo is to estimate the cost of clean-up ofpetroleum contamination at 42 Chapman Street owned by Webber Oil Company and todetermine if the City can provide a 20% match using in-kind services rather than cash. A

grant of $200,000 maximum is available to cover 80% of the clean-up cost.

REVIEW OF SIGNIFCANT DATA: A meeting was held with Larry Clark of thePresque Isle Industrial Council and Gerry James of the Public Works Department togather background information on the project. Larry provided information about the

project to include a preliminary cost estimate that he and Gerry had calculated earlier.This cost estimate was updated and is provided as an attached page to this memo.

Use extreme caution when using the attached cost estimate because it is only aguesstimate. An accurate cost estimate can only be done when the Phase II SiteAssessment has been completed. The Phase II assessment will provide a work plan and

quantities that can be used for estimating costs. Once the on-site assessment is done, thePhase II report will take 3-4 months to complete. A Phase I assessment was done in 2008for the DEP by Summit Environmental. Phase I assessments is in the process of being

updated because assessments must be less than 1-year old to be considered reliable.

The cost estimate was based on an estimate of 2,000 tons of contaminated soil that wasprovided in January 2009 correspondence by the DEP. The 2,000 tons equates to 1,500cubic yards (cy) assuming a unit weight of 2,800 lbs/cy. Note that Davis Bacon wages

will be in effect for this project. The cost estimate was done on the premise that a privatecontractor would perform the work in 2010.

SUMMARY: The total estimated cost of the clean-up is $216,975. This includes a 25%

contingency. Twenty percent of the total equals $43,395 which must be provided as alocal match. It is possible to provide the 20% match with in-kind services by the City.These in-kind services include: (1) trucks for hauling excavated material, (2) trucks for

hauling backfill, (3) trucks for hauling loam, (4) gravel backfill material, and (5) a portionof the landfill tipping fees.

To reach the 20% match amount of $43,395, one could use a portion of the landfilltipping fees or a combination of some or all of the listed items (1)(5) above to reach the

match amount. Keep in mind that this cost estimate is based on an assumption in the2008 Phase I site assessment and a Phase II Site Assessment is required for a moreaccurate cost estimate.


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Page 2 7/8/2010Jim Bennett memo

WEBBER OIL PROPERTY REMEDIATION ESTIMATED COST

Item Qty Units Unit Cost Est. Cost Est. Cost

EXCAVATION

Trucks 5 40 Hours $ 80/Hour $16,000Excavator 1 40 Hours $ 150/Hour $ 6,000Subtotal for Excavation $ 22,000

BACKFILLTrucks 5 40 Hour $ 80/Hour $16,000Dozer 1 40 Hour $ 80/Hour $ 3,200Roller 4 Days $ 500/Day $ 2,000Gravel 1800 Cubic Yards $ 10/Cubic Yard $18,000

Subtotal for Backfill $ 39,200

LOAMLoam 185 Cubic Yards $ 35/Cubic Yard $ 6,475

Subtotal for Loam $ 6,475

LANDFILL TIPPING FEETipping Fee 2000 Tons $40/Ton $80,000

Subtotal for Landfill Tipping $ 80,000

CONSULTANTLabor 100 Hour $125/Hour $12,500Expenses 1 Lump Sum $ 2,500

Subtotal for Consultant $ 15,000

SECURITY FENCEFence 600 Linear Feet $10/LF $ 6,000

Subtotal for Security Fence $ 6,000

EROSION CONTROL1 Lump Sum $ 2,500

Subtotal for Erosion Control $ 2,500

TRAFFIC CONTROLFlagger 1 80 Hours $30/Hour $ 2,400

Subtotal for Traffic Control $ 2,400

Subtotal $173,575

CONTINGENCY1 Lump Sum 25% $43,400

Subtotal for Contingency $ 43,400

TOTAL $216,975


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AGENDA INFORMATION SHEET: AGENDA ITEM NO. 7 - 11SUBJECT:

Consent Agenda Items

INFORMATION:

7. Ballot for MMA 20102012 to Elect Member to Legislative Policy Committee8. Approve City Council minutes for the June 7, 2010 meeting9. Approve Warrants #21 -25 totaling $1,991,749.89

10. Approve closing City Offices, which are able, at 3:00 p.m. on Wednesday, July 21

st

to attendthe Citys Annual Wellness Picnic11. Approve establishing a profit-sharing retirement plan in the form of the ICMA Retirement

Corporation Governmental Profit Sharing Plan & Trust



Be it resolved by Councilor , seconded by Councilor , to approve consent agenda item as follows:

* Ballot for MMA 20102012 to Elect Member to Legislative Policy Committee* Approve City Council minutes for the June 7, 2010 meeting* Approve Warrants #21 -25 totaling $1,991,749.89* Approve closing City Offices, which are able, at 3:00 p.m. on Wednesday, July 21st to attend

the Citys Annual Wellness Picnic*Approve establishing a profit-sharing retirement plan in the form of the ICMA RetirementCorporation Governmental Profit Sharing Plan & Trust


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Presque Isle City CouncilMinutes

Date: Monday, June 7, 2010Time: 6:00 PMPlace: Presque Isle City Council Chambers

Call to OrderRoll Call

Present: Chairperson Jennifer Trombley, Councilors Mel Hovey, Randy Smith, Donald Gardner, CalvinHall, Emily Smith and Walter Elish

City Manager James A. Bennett and City Clerk Nancy G. Nichols present.

Chairperson Trombley called the meeting to order at 6:00 p.m.

Pledge of Allegiance

Councilors led those present in the Pledge of Allegiance

Public Hearings

1. Approve Special Amusement Permit Applications for James Stacey, d/b/a The Crows Nest

Restaurant and Event Center LLC, 150 Maysville Street, Presque Isle; KBS Enterprises, d/b/aPresque Isle Inn and Convention Center, 116 Main Street, Presque Isle; and Hampton Inn PresqueIsle, 768 Main Street, Presque Isle (Single Hearing)

There no public comments.

Be it resolved by Councilor Hall, seconded by Councilor Gardner, to approve Special Amusement Permit

Applications for James Stacey, d/b/a The Crows Nest Restaurant and Event Center LLC, 150 MaysvilleStreet, Presque Isle; KBS Enterprises, d/b/a Presque Isle Inn and Convention Center, 116 Main Street,Presque Isle; and Hampton Inn Presque Isle, 768 Main Street, Presque Isle. Vote7-0

2. Approve Malt, Spirituous and Vinous Liquor License applications for Xin Chen, d/b/a My TaiInc., 449 Main Street, Presque Isle; and James Stacey, d/b/a The Crows Nest Restaurant and Event

Center LLC, 150 Maysville Street (Single Hearing)

There no public comments.

Be it resolved by Councilor Elish, seconded by Councilor Gardner, to approve the Malt, Spirituous and

Vinous Liquor License applications for Xin Chen, d/b/a My Tai Inc., 449 Main Street, Presque Isle; andJames Stacey, d/b/a The Crows Nest Restaurant and Event Center LLC, 150 Maysville Street.Vote7-0

Citizen Comments

Geary Bonville, resident at 240 Chapman Road, referenced his selling and hauling of clay (5,000 yards) tocover the landfill. Mr. Bonville stated that the City has been paying a Canadian company to haul offscrap metal and would like to have the opportunity to take over the contract. This would assist him tocomplete developing his mobile home park in order to make it profitable so he may pay his taxes.


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3 City Council Meeting Minutes June 7, 2010

Jacqueline Goodine, resident at 15 Third Street Apt. G, requested support from the City Council inestablishing a Dog Park by allowing the use of a City-owned parcel of land for this use. Ms Goodineindicated there were several volunteers ready to pursue this project.

City Manager Bennett suggested that City Councilors review potential sites and proposed plan regardingestablishing a dog park. Consensus of the City Council was to have staff research establishing a dog park

and to report back to them with options.

13. Approve PIDF loan for James Stacey, d/b/a The Crows Nest and Event Center LLC

Be it resolved by Councilor Hall, seconded by Councilor Elish, to approve a Presque Isle DevelopmentFund loan from the Presque Isle Development Fund to James A. Stacey, d/b/a Crows Nest Restaurantand Events Center, LLC in the amount of Two Hundred Thousand Dollars ($200,000.00), for a period ofsix (6) years at an interest rate of two and a quarter percent (2.25%) per annum. Payments of interest onlyfor initial two (2) years and principal and interest payments for the remainder of the loan. Vote7-0

14. Approve easement prepared by the Presque Isle Sewer District for Dyer Street to Parsons St.

Be it resolved by Councilor Emily Smith, seconded by Councilor Randy Smith, to approve the proposedsewer easement for Dyer Street to Parsons Street. Vote7-0

15. Sale of Gouldville School

Be it resolve by Councilor Hovey, seconded by Councilor Randy Smith, to authorize the City Manager toenter into a purchase sale agreement with Aroostook County Action Program for the sale of the formerGouldville School located at 44 Park Street at a purchase price of $165,000.00. Vote7-0

16. Create a City Economic Development Fund of $154,600

Be it resolvedby Councilor Hovey to apply the $154,600 against the items that are not in the Citysbudget that are being used to purchase the Chapman Street facilities. Resolved died due to the lack of asecond.

Be it resolved by Councilor Hall, seconded by Councilor Gardner, to approve creating an economicdevelopment fund for the use by the City from the remaining proceeds from the sale of Gouldville School.Vote4-3 Councilors Hovey, Randy Smith and Emily Smith

17. Authorize City Manager to work with Nordic Heritage Center to upgrade their facility

Be it resolved by Councilor Hall, seconded by Councilor Gardner, to authorize the City Manager to workwith various groups to develop a strategy to accomplish the upgrades with minimal City involvement.Vote7-0

18. Approve contract with Maine Public Utilities Commission for Energy Efficiency andConservation Block Grant

Be it resolved by Councilor Randy Smith, seconded by Councilor Emily Smith, to approve the AmericanRecovery and Reinvestment Act agreement between the State of Maine, Public Utilities Commission andthe City of Presque Isle. Vote7-0


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19. Allonge for Solid Waste Bond Anticipation Note

Be it resolved by Councilor Hovey, seconded by Councilor Randy Smith, that the City Council authorizethe Chairperson of the City Council and the City Treasurer enter into an agreement with Key Bank thatextends the maturity date of the Citys Bond Anticipation Note from August 20, 2010 to December 31,2010 and reduces the interest rate from 4.12% to 3.99%. Vote7-0

20. Authorize sale of basketball court area on Route #1/Main Street

Be it resolved by Councilor Gardner, seconded by Councilor Hall, that the City of Presque Isle conveya certain parcel of land situated on Main Street to Haines Manufacturing Co., Inc. as outlined in anagreement between Haines Manufacturing Co., Inc. and the City of Presque Isle dated March 8, 2008for the sum of $20,000 and the City Manager be authorized to sign the Municipal Quitclaim Deed.Vote7-0

21. Request to authorize the construction of a new parking lot at Peace Park

Be it resolved by Councilor Gardner, seconded by Councilor Elish, to approve utilizing the fundsreturned to the City from Haines Manufacturing Company, Inc. to purchase materials to construct aparking area at Peace Park not to exceed $5,000. Vote7-0

22. Acceptance of conditional donation for the Library upgrade project

Be it resolved by Councilor Gardner, seconded by Councilor Hall, that the City Council accept theprivate donation graciously offered to the City in the amount of $1,000,000 for the Proposed ExpansionProject of the library to improve accessibility and expand the library building conditional upon the CityManager coming back to the City Council for final approval of the Building and Funding Plan.Vote6-1 Councilor Hovey Opposed

23. Authorize Phase I of Citys technology upgrade

Be it resolved by Councilor Gardner, seconded by Councilor Emily Smith, to authorize Phase I of theCitys technology upgrade. Vote7-0

Managers Report

24. Approve Bid for Purchase of Utility Vehicle

Be it resolved by Councilor Hovey, seconded by Councilor Randy Smith, that the City Council approve

the purchase of a 2010 John Deere XUV 620i from Theriault Equipment of Presque Isle for $9,438.93with funds from the Solid Waste Department reserve account. Vote7-0

25. Payroll Warrant

Councilor Hovey indicated that he would not be able to sign the payroll warrant for several weeks as hewould not be available for the rest of the summer. Councilor Randy Smith volunteered to sign the payrollwarrant until Councilor Hovey resumes signing.


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Manager Bennett stated that by replacing the Centrex System, the City will be saving approximately $900per year; Councilor Emily Smith will be available to accept the Barbara Bush $25,000 grant on behalf ofthe City; the CDBG downtown project is underway; on June 10

ththe Special Olympics will be held in

Presque Isle; Public Works sand bid is anticipated to be $40,000 less; paving projects are ahead ofschedule; the Indoor Pools slide has proven to be a positive change; and Payroll has been transferredback In-house.

Be it resolved by Councilor Gardner, seconded by Councilor Randy Smith, to approve the Managersreport as presented. Vote7-0

Announcements

Councilor Hall read several announcements.

Adjournment

Be it resolved by Councilor Gardner, seconded by Councilor Hall, to adjourn the meeting at 8:12 p.m.

Vote7-0

Attest:Nancy G. Nichols, City Clerk


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2010 WARRANTS

Warrant #21 $ 47,599.49

Warrant #22 $847,042.24Warrant #23 $265,486.17Warrant #24 $115,975.22Warrant #25 $715,646.77

TOTAL $1,991,749.89


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Appoint Tenant Commissioner to Presque Isle Housing Authoritys Board of Commissioners

INFORMATION:

Copy of a letter of interest is attached. Councilors Hall and Gardner conducted an interview prior

to the meeting. Recommendation will be made by one of the Councilors.



Be it Resolved by Councilor , seconded by Councilor , to appoint Rosemary Kidney as Tenant

Commissioner to the Presque Isle Housing Authority Board of Commissioners to fill an expired

term ending 10/01/2010 .


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Presentation of Tax Commitment and set 2010 Mil Rate

INFORMATION:

Copy of memo from Treasurer Priscilla Webb attached.



Approve Resolve as proposed in City Treasurers memo.


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To: Presque Isle City Council

From: Priscilla Webb, City Treasurer

Date: June 30, 2010

Subject: Set mil rate for 2010

BE IT RESOLVED by..............and seconded by ..,that the City Council authorize the Tax Collector to collect paymentsof year 2011 taxes in advance.

BE IT RESOLVED by..............and seconded by, thatthe 2010 taxes are due and payable on July 1, 2010.

BE IT RESOLVED by..............and seconded by,that interest to be paid by the City of Presque Isle shall be at the rateof 3.00 percent per annum on reimbursements due to overpayment(abatement) of taxes.

BE IT RESOLVED by..............and seconded by ,that interest on unpaid taxes shall be at the rate of 7.00 percent perannum. Interest on unpaid taxes will begin to accrue on October 14,2010.

BE IT RESOLVED by..............and seconded by ., thatabatements shall be appropriated from the 2010 overlay.

BE IT RESOLVED by..............and seconded by ,that the mill rate for 2010 to be assessed against all taxable real andpersonal property shall be _______ mils with $0.00 to be taken fromthe Citys undesignated fund balance.


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Presentation of Tax Commitment and set 2010 Mil Rate

INFORMATION:

Copy of memo from Treasurer Priscilla Webb attached.



Approve Resolve as proposed in City Treasurers memo.


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City of Presque Isle

General Fund Undesignated Unrestricted Balance (surplus)

For the Fiscal Year 2010

Historically, the City has maintained a balance in Surplus equal to 2 months (18%) of budgeted exependitures.In July 2009, the City adopted a Policy stating that this amount can be reduced to 12% if the balance in theEmergency Reserve is a minimum of 4% of budgeted expenditures.

2010 Budgeted Exependitures 10,682,150$

Add: MASD #1 5,375,744

County Tax 562,365TIF 171,104

16,791,363

12.00%Minimum Surplus Balance Required 2,014,964$

General Fund Unrestricted

Undesignated Balance (Surplus)At December 31, 2009 2,796,016

Less: Lien Release from Maine, Montreal, & Atlantic Railway (20,000)

Balance at June 30, 2010 2,776,016

Excess available 761,052$

Calaculation of balance to be maintained in Emergency Reserve

Balance In Emergency ReserveAt December 31, 2009 1,448,352$

2010 Appropriation 94,550

Balance at June 30, 2010 1,542,902

4% of Budgeted Expenditures 671,655$


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Updated Municipal Revenue and Expenditure Forecast

INFORMATION:

Forecast provided by Treasurer Priscilla Webb.



No action required.


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MEMO

TO: Presque Isle City Council

FROM: Pat Webb, Finance Director

DATE: July 7, 2010

SUBJECT: 5-Year Forecast

In updating this forecast I left expenses at an increase of 2-3%/year including Salaries. For reference

a 3% pay increase equates to an increase of approximately $200 thousand in Salaries and Benefits.

For Revenue, the $150 thousand decrease in 2011 from 2010 Budget is due to anticipated decreases

in Revenue Sharing. After 2011, Revenue increases 2-3% year.

Its pretty obvious that if both Expenses and Revenue increase at approximately the same rate, since

our current revenues are less than half of our expenditures, the Citys net spending budget will

increase each yeareven if nothing new is added.

For 2011:

Significant items that cause the $1 million increase in the Citys budget include in addition to the 3%

increase in expenses indicated above:

o $150 thousand decrease in RevenueRevenue Sharing;o Increase in rate charged by Maine State Retirement -- $105 thousand increase;o Solid Waste Landfill Bond Closes in fall of 2010; adds $372 thousand to debt service;

will be offset by Tip Fees currently going to Closure Reserve ($200 thousand) for a net

of $172 thousandCitys share @ 80% is $140 thousand;

o Capital Reservesfollowing the 5 year plan, an increase of $200 thousand in 2011;o Debt Serviceassume financing for the purchase of the Chapman Road properties

($175 thousand) and the Library Addition ($240 thousand), -- 8 years @4% is an

increase of $63 thousand/year in Debt Service.

I used the 2010 Tax Commitment Scenario where the valuations were increased and the mil rate

decreased to 23.5 mils. The actual mil rate doesnt really matter, what does matter is the dollar

amount of taxes that need to be raised each year to cover the budgetusing the current scenario

that would be an increase of $1,214,831 in 2011--$180 thousand is attributable to the 3% increase in

the School and County Budgets.

For the School and County I used a 3% increase per year.


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City of Presque IsleSummary of Forecasted Tax Requirements - 2010 Budget

For the Years 2009 - 2015

2009 ACTUAL

2010

BUDGET

2011

FORECAST

2012

FORECAST

2013

FORECAST

2014

FORECAST

2015

FORECAST

CITY BUDGET ONLY

TOTAL REVENUES 4,619,071 4,487,325 4,337,460 4,454,196 4,583,211 4,716,271 4,853,530

TOTAL EXPENDITURES 10,318,609 10,682,150 11,548,973 11,945,109 12,258,577 12,670,921 13,069,727

CITY NET APPROPRIATION 5,699,538 6,194,825 7,211,513 7,490,912 7,675,366 7,954,651 8,216,197

TAX CALCULATION

Valuation 473,076,800 514,670,350 519,670,350 524,670,350 532,170,350 542,170,350 552,170,350

County 560,973 562,365 579,236 596,613 614,512 632,947 651,935

MSAD #1 5,218,390 5,375,744 5,537,016 5,703,127 5,874,221 6,050,447 6,231,961

TIF 136,372 171,1

city council meeting july 12 2010

Documents