Presque Isle City Council Meeting

Monday, July 12, 2010 5:00 PM Presque Isle Council Chambers

AGENDA
Call to Order – Roll 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 England Franchise, 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 area 4. Approve work and Loan (Donation) at Nordic Heritage Center 5. Library Expansion Project: a. Approve Project Budget and Scope b. Authorize Bid Specifications for Bid Alternative for Energy Efficiency Improvements c. Authorize City Manager to sign Escrow Agreement 6. Accept Brownfield Grant Consent Agenda Ballot for MMA 2010 – 2012 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 City’s Annual Wellness Picnic 11. Approve establishing a profit-sharing retirement plan in the form of the ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust 7. 8. 9. 10. New Business 12. Appoint Tenant Commissioner to Presque Isle Housing Authority’s Board of Commissioners 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

16. Approve Purchase of 1998 Mack Truck from Muller Welding of Indianapolis, Indiana for an amount not to exceed $44,500 17. Approve Personnel Policy Changes: A. Per Diem B. Employee Appeal Process 18. Approve Management Response to Management Letter from Runyon, Kersteen, Ouellette as a result of the 2009 Audit Manager’s Report Announcements Executive Session Adjournment

City of Presque Isle, Maine
The Office of City Manager

James A. Bennett
Email: jbennett@presqueisleme.us

MEMORANDUM
TO: FROM: DATE: RE: Honorable City Council James A. Bennett, City Manager July 8, 2010 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. workshop material is available under item 1 of your agenda notebook. The

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 any new first floor residential units within a smaller version of the downtown district. Further, the Council 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 the package is additional information. The Council is being asked to decide which of two paths it would like to see staff to take. It could instruct to draft an ordinance change that relates only to this item; first floor residential units, and have it processed prior to the expiration of the existing moratorium. The other direction is to extend the moratorium for 90 days to allow a more comprehensive recommendation to be considered at the same time. Please see that attached information for more details. 4. Included in the package is a memo outlining a formal recommendation and request to allow city staff to participate in the work that needs to be done at the Nordic Heritage Center as well as a $15,000 donation/loan to the Center. 5. Included in the package are several documents that provide the background information for the three components of this agenda item. Specifically, you will find a memo from Sonja, a memo from me summarizing the information, a draft escrow agreement, a proposed overall budget with suggested funding sources as well as fixture and & furnishings budget. The bottom line on the project, as currently recommended is that the entire project will cost the taxpayers less money 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 as well as a memo from staff that outlines the various ways we believe that we can utilizing existing City resources to provide the 20% match for the project without allocating any cash to 12 Second Street Presque Isle, ME 04769-2459 207.764.4485 Fax 207.764.2501

meet the obligation. Based on that ability, I am asking the Council to support the acceptance of the grant. As of today, we have not heard back from Webber Oil on the letter written by DEP but 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 Council’s policy 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 an actual reimbursement. In most cases, this will be a savings to the community. The second corrects the personnel policy that allowed employees to appeal personnel decisions to the Council, 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 the auditors. They have been forwarded to the audit committee. A motion to receive them and place them on file is appropriate.

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT:
Workshop regarding tax commitment.

AGENDA ITEM NO.

1

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

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

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City of Presque Isle, Maine
The Office of City Manager

James A. Bennett
Email: jbennett@presqueisleme.us

MEMORANDUM
TO: FROM: DATE: RE: Honorable City Council James A. Bennett, City Manager July 8, 2010 Tax Commitment Workshop

On Monday evening, you will meet at 5:00 PM, primarily to understand more about the tax assessment 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 the Council and School Committee holding the line on the budgets. This memo is intended to provide the Council a more in-depth discussion about this issue. Role of Assessor The Assessor for each municipality plays an interesting role. While employed by the local community, the primary responsibility is to the State. In fact, those positions have been described by some, as agents of the State. It does not take a lot of thinking to understand the rationale for such legal requirements; controlling the local assessments of property determines the amount of property taxes a person 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 in the community, with the sole intent of equalizing the tax burden each person must pay. One of the fallacies 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 of property 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 one which a willing buyer and willing seller agree on a price based on acceptable value. The sale cannot be 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 to the actual selling price. This is expressed as a percentage of the assessed value. The cumulative effect of sales for the year will determine the total ratio for the community. This is often expressed as the certified value. To illustrate, if the City has 5 homes that are assessed at $100,000, but sold for an 12 Second Street Presque Isle, ME 04769-2459 207.764.4485 Fax 207.764.2501

average of $112,000, we would have a certified ration of 89.28%. The second determination will measure how far away each of the sales are from the assessed value; also known as the 'standard deviation' for those who understand statistics. To illustrate, if there were 10 homes that sold during the year with 5 of those selling for $80,000 and 5 selling for $120,000, then the certified ratio would be 100%. 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 a quality rating that would let people know there are problems with the numbers, even though the community would be at 100% certified ratio. Changes in State Attitude The creation of the Homestead Exemption several years ago, lead to some interesting changes in the way the State reviewed local assessment practices. In the 1990’s, the constitution was changed to require the State to pay for 50% of all State-Mandated programs. Hence, when the homestead went into effect, each municipality received a check for 50% of the lost value to the community. It was generally 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 as reimbursement. In the dark days of the State budget crisis, the State has made it clear that it will only reimburse on the certified ration basis for all exemptions. Further, local assessors are expected to adjust the exemption 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 selling price, 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 personal property (representing about 10% of the total City value), certain business properties, exemptions, and reimbursements from the State. Combined, these impacts would ‘net’ out around $4,500,000 of the new 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 would mean about $20.00 more per year. The reductions in the certified value are not occurring equally across all properties. The ‘typical’ homes 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 properties and higher-end homes are not fairing as well. In some cases, a reduction of value has been demonstrated in the market. In addition to the lowering of the certified ration, without the traditional adjustments by the Assessor, the quality rating of the assessing would worsen.

Tax Commitment Workshop

July 8, 2010

Page 2 of 4

Traditional Approach In the past decade, the Assessor has made periodic adjustments to the costing schedules to better reflect that which is going on in the market place. These adjustments have been done to keep the overall certified ratio and quality ratings within the acceptable ranges according to the State. More specifically, 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 expensive and often very divisive in a community. Continuing that trend, Lona has prepared the commitment by making the same type of adjustments. Generally, the adjustments involved increasing the value of residential land, the value of the typical home cost factors and reducing the cost factors for the higher end homes. Prior to the adjustments, the total value of the community was 54% residential and 46% commercial. The shift would cause approximately 5% of the value to leave the commercial side of the equation and end up on the residential side. It also adds another $28,000,000 of value to the total for the City, beyond the nearly $12,000,000 of actual new value. This new value created by increasing the residential values will result in a $1.02 reduction in the tax rate. It is important to remember that this reduction in the mil rate does not translate into a reduction in the tax bill for all. In fact, there will be very few residential tax bills that would be reduced. 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 of the 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 make some 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%, the impact would be 9.26% of additional cost (5% ÷ 54%). When combined with the impacts of the homestead exemption reduction, residential taxpayers should prepare themselves for a 10% increase in the 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 alternative be desired, staff can make those adjustments and process the tax bills accordingly. As a reminder, it would increase the tax rate by $0.25.

Tax Commitment Workshop

July 8, 2010

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Future Consideration In the near future, there needs to be a serious discussion about some sort of more formalized revaluation. If these were normal times, it could be as soon as next year (especially if the Council decides to break with most recent tradition). One thing is almost for certain when a community does complete 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 local assessment (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 the immediate future, until there is a better understanding of where the real estate market is going to finally stabilize. At the same time, staff needs to be evaluating the different alternatives to implementing 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 process is complicated and usually misunderstood. It can be extremely frustrating, as well. This is particularly the case when elected leadership has to work so hard to hold the line on the budget in anticipation of not asking any person to make out a larger check. Unfortunately, this is the exact position in which the Council will finds itself. The traditional approach that the Assessor has used, is considered the fairest and most progressive way to make adjustments. While the final decision on how to approach this year’s assessment still remains exclusively in the hands of the Assessor, it technically is a toss of the coin on which way to proceed. If the Council wants to take the same course of action, there is no action required. On the other hand, should it desire a different approach this year, the Council should vote to so during the workshop. Staff will then have the proper documentation ready for action at the Council meeting.

Tax Commitment Workshop

July 8, 2010

Page 4 of 4

2010 Assessor’s Report to Council Valuation Changes July 2010

Please know that for 2010, the assessor has made changes in the City’s assessed values. These changes were made to correct inequities, to adjust for market value changes and to bring our average 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 after “no 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 commercial ratio was 89.2%. As a reminder – An assessment ratio is the assessed value divided by the sale price. For example, if a property’s 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 veteran’s 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 was the assessor’s 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 to 91%. 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, completion of the Oak Street condos/townhouses, completion of the Hampton Inn and Theriault Equipment, 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.

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 and changes in “tax acquired” property are not recorded on that list.

As a result of all the changes made, the City’s 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 to improve 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

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT: AGENDA ITEM NO.

2

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, Presque Isle.

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.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:
Entertain comments from the public.

REQUESTED ACTION:

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Be it resolved by Councilor , seconded by Councilor , to approve a 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, Presque Isle.

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 Council public 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

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT: AGENDA ITEM NO.

3

Discuss Moratorium on First Floor Apartment in the Downtown business area

INFORMATION:
Documentation provided in “Memo” form from City Planner James Francomano.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

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A. (Recommended) Be it resolved by Councilor , seconded by Councilor, to schedule a public

hearing at the City Council’s 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 Council’s regular August and September meeting dates to consider adoption 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).

CITY OF PRESQUE ISLE

Memo
To: From: Cc: Date: Re:

Presque Isle City Council James P. Francomano, City Planner James A. Bennett, City Manager Kenneth C. Arndt, Planning and Development Director July 7, 2010 Update on Proposed new “Downtown” Retail Business Zone (RBZ-1 & RBZ-2)

STATUS OF MORATORIUM On May 3, 2010 the City Council adopted a 180 day moratorium on new first floor dwelling units being created in the downtown area. This ongoing moratorium is scheduled to end in October. The Planning Board discussions and other public outreach and discussion on proposed changes to downtown zoning are making progress and have more than proved the City Council’s ongoing moratorium worthwhile. In order to adopt changes to downtown zoning before the end of the current moratorium the City Council has two choices: A) the City Council may chose to extend the moratorium by an additional 90 days, by scheduling a public 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 the possible negative effects associated with apartment dwellings being created in rental units historically used for office or retail purposes in the Downtown. Some of the perceived negative effects that the Board and staff heard complaints about had to do with behavior of certain tenants, who were receiving guests or otherwise 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 some complaints focused on an underlying economic development issue: the long-term effects caused by the conversion of units suitable for small business into apartments in the first place. Is there a point when the balance 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 a representative of a new landlords association of members’ interest in making additional conversions of first floor potential office/retail spaces to residential use. ONGOING PUBLIC PARTICIPATION Public outreach and Planning Board discussion during the City Council’s ongoing moratorium has clarified the need for a change in the RBZ zoning requirements downtown. However with the added complexity of the “two zone” solution, staff now recommends that Council be prepared to extend the moratorium until January 2011 to allow time to complete the draft language and schedule additional public hearings.

In comments received in connection with our May 20th public meeting at Governor’s restaurant were 17 in favor and 4 against prohibiting or restricting first floor apartments. Comments on other details were not so clear-cut. For example some people were uncomfortable at the thought of reducing the parking requirements for the entire downtown area. Interestingly though, this was only for dwelling units, not necessarily 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 in support of the idea of carving out an area in the Downtown core and prohibiting first floor dwelling units facing 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 recommended instead of one. This solution allows the City to bring the maximum of new development potential into a tightly drawn downtown core district and while also applying the prohibition on first floor dwelling units there (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 wish to extend the Moratorium then it may desirable to adopt the stricter requirements of the “egg yolk” or center area across the entire “egg white” or surrounding area, and to proceed on the basis of upcoming City 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 out completely yet as shown on the attached table of dimensional standards. CONCLUSION In any event the goal is to ensure that there is no gap between the end of the Moratorium and the opportunity for the Council to adopt new zoning amendment to restrict or prohibit first floor apartments downtown. Staff recommends continuing the process that is underway, waiting for a complete “two-zone” solution 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. However staff believes this zoning project is close to complete. Now that the public outreach has taken its course we are confident that a quality zoning amendment can be presented for the usual Planning Board public hearing and ultimately for City Council’s two public hearings with only 60 to 90 days added on.

RECOMMENDED MOTION A: Motion by ___________________, seconded by _________________, to schedule a public hearing at the City Council’s 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.

MOTION B (Not recommended): Motion by ___________________, seconded by _________________, to schedule two public hearings at the City Council’s regular August and September meeting dates to consider adoption 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).

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT: AGENDA ITEM NO.

4

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.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:
Recommended for approval.

REQUESTED ACTION:

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Be it resolved by Councilor , seconded by Councilor , to support the City Manager’s recommendation to provide labor, use of equipment and cash donation to update the Nordic Heritage Center.

City of Presque Isle, Maine
The Office of City Manager

James A. Bennett
Email: jbennett@presqueisleme.us

MEMORANDUM
TO: FROM: DATE: RE: Honorable City Council James A. Bennett, City Manager July 8, 2010 Request to Allow City Work and Loan/Donation to Nordic Heritage Center

On June 2, 2010, Presque Isle’s Nordic Heritage Center was officially announced as host of one of 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 the announcement. One needs to look no further than the 2004 event held at Fort Kent. Published reports indicate 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 hours which 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 event would have the economic impact of nearly $15 million Euros ($21 million US) based on the previous four events held over the last decade. To further elaborate on the size of the event, there must be a continuous supply of power to the event, including backup capabilities, in part to prevent the 16 to 20 active filming cameras for the broadcast from ever having the potential of being unable to broadcast. It should be the single biggest event 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 facility was created. To be able to host the event, beyond the traditional challenges, there is a very limited time to make the changes necessary to host the event. The changes are primarily in the area of the shooting range. The simple change that is required, movement of the facility slightly away from the grand 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 the group working on making the improvements. Based on the plan, I am suggesting that the City involvement consist of three components. They are as follows:

12 Second Street

Presque Isle, ME 04769-2459

207.764.4485

Fax 207.764.2501

1. Hauling of gravel from a pit (gravel is anticipated to be from a pit in the immediate vicinity) and asphalt (from the Presque Isle plant) to the Nordic Heritage Center site; 2. Using city crews to assist in manual labor at the site; and 3. Provide a cash loan/donation to the project in the amount of $15,000. To be more specific, city crews would be involved with such tasks as disassembling the target structure and reassembling it, moving the flag poles, and other types of work. In addition to the manhours for this type of work, the actual hauling of the gravel and asphalt for the shooting ramp will also be involved. The estimated value of this work is projected to be $25,000. Given the short winter and great spring, all of the forecasted and schedule work is weeks ahead of projection. This request could not have happened at a better time. The suggested work can be accomplished in the next few weeks with little to no impact on the other anticipated workloads. Of course, there is other unscheduled work that will not be accomplished as a result of this request. I am also suggesting that we contribute $15,000 from a newly created economic development fund to provide some cash towards the project. These monies would be generated from the $154,600 of net proceeds from the sale of the Gouldville School to Aroostook County Action Program (ACAP) for their Headstart Center. Further, I would suggest that we treat it as loan on our books. Non-Traditional Loan/Future Vision of Center There are those that have expressed a quiet vision to create other structures and facilities at the Center, including possibility of an inn or other residential hospitality facility. Obviously, at this point, this is merely an idea. In other words, it is several years in the making, if ever, before it might become a possibility. However, should that occur, it would provide the community with potential property tax revenues (given that it is built in the Presque Isle portion of the center). If this was to ever become a reality, there can be opportunities to shelter those revenues and protect them from the adverse impacts of the state funding formula using such vehicles as TIF’s. Understanding that potential, it makes sense for the City to consider any donation to the Center as a ‘loan’, at least on paper. At the same time, it should be squarely understood by the City Council and the community that for all intents and purposes, these funds will be a grant to the facility. There will be no payments or interest due, by the Center. Only if there is an opportunity at some point in the future, to shelter some funds that are already being paid to the community, would this idea of a ‘loan’ become relevant. Summary There will be economic activity that will be created within the community, the County, the region, and the State because the 2011 Biathlon Word Cup will be held in Presque Isle in seven months. While the overall impact can be debated, the number is substantial. Further, with an estimated 60 million television impressions of Presque Isle and that number doubled over a two-week period of Aroostook County, Maine, there seems to be optimism of long term impacts in the years to come. Municipalities have for many years participated in event economic development; hosting events because of the positive effects on the balance sheet. While this might be a new role for Presque Isle, it is by no means new to other communities. The City’s investment, including labor, use of equipment and cash donation is estimated to have an economic impact of approximately $40,000 of the $205,000 project to update the facility, or 20%. We are fortunate to have both the good luck of the easy winter and the sale of the school to generate

essentially an opportunity to meet the request without adversely impacting any other work, project or budgetary intent. It is the recommendation of my office that the City Council endorse this request.

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT: AGENDA ITEM NO.

5

Library Expansion Project: a. Approve Project Budget and Scope b. Authorize Bid Specifications for Bid Alternative for Energy Efficiency Improvements c. Authorize City Manager to sign Escrow Agreement

INFORMATION:

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

MH

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DG

JT

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ES

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City of Presque Isle, Maine
The Office of City Manager

James A. Bennett
Email: jbennett@presqueisleme.us

MEMORANDUM
TO: FROM: DATE: RE: Honorable City Council James A. Bennett, City Manager July 8, 2010 Information Regarding the Library Expansion

On Monday evening, you will be asked to take three votes that essentially makes the library addition 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 would include upgrading fixtures and furnishings in the addition, including 15 new public access computers. Finally, the project will take a hard look at replacing windows and upgrading the front 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 two optional items: $165,000 for energy efficiency investments and the $49,930 for fixtures/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 all alternatives would be $240,000 from taxpayers, $165,000 from energy savings (if obtainable), $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 is necessary for the project to proceed. b. Authorize bid specifications for energy efficiency improvements: the plan is to include as a bid alternate, the specifications to upgrade all of the windows in the old part of the building and fix the front outside wall, to improve energy efficiency. The Council would then have the actual cost to make those improvements in order to judge whether it makes sense to make the investment. The pre-design estimate is that the cost will be $150,000. The pre-design estimate 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 is estimated that another $15,000 of architect and engineering costs are required. The Council needs to decide if it would like to invest that $15,000, based on the pre-design estimates. A motion to authorize that work is desired, should the Council believe that the investment is worthy. c. Authorize the City Manager to sign the Escrow Agreement: since the last meeting, I have been working with the major donor’s (Mary Smith) agent to work through the terms of an Escrow Agreement that would protect the two parties. Included in the package is a draft of 12 Second Street Presque Isle, ME 04769-2459 207.764.4485 Fax 207.764.2501

the Agreement. It is not in final form. It is, however, substantially complete. The Agreement would ensure that the $1,000,000 is actually in the escrow account prior to the awarding of the bid for the construction of the project, protecting the City. It would provide a working/partnership basis between the City and the donor to make sure that the project is not substantially changed during the construction in such away to completely change the intended project in substance and presentation. It would provide assurances that the project would be completed in a timely fashion. The signing of the Escrow Agreement is a critical step in minimizing the financial impact on the project. The Council is being asked to authorize me to sign the Escrow Agreement, substantially in the form present, on behalf of the 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 or outside. In today’s cost, the elevator alone is believed to be $300,000, if internally built and upwards of $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 foot addition 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 to determine if there are other deficiencies within the current building. There are three major challenges that have driven the cost of the original project upwards: First, there is a clear need to sprinkle the building. We have requested, and the Water District did stub in a new, larger water main to the site prior 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 some retrofitting of the existing building. These three items in their entirety is expected to increase the overall project cost by $75,000. Project Status A revised Building Committee meeting was held on June 28. Councilors Emily Smith and Randy Smith were both able to attend. At that meeting, all parties felt that there were enough answers to the larger questions to proceed to bring the project scope and funding to the Council. Subject to the affirmative vote by the Council on the three items, the project will move immediately into the bid document preparation stage. During that time, the revised Building Committee will continue to make some final decisions on smaller related issues that would not impact the project budget, such as where the interior offices be located. The goal is to have the project out to bid by the end of the summer/early fall. It is strongly recommended that this bid time frame be followed. It is generally accepted that preferred pricing will occur on projects that are out to bid during that time frame, as opposed to those that will be out to bid in the winter/early spring period. The Trustees have voted that the 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 a determination if a ‘Clerk of the Works’ will be necessary on the project. If so, do we have the inhouse talent and time available to make that happen at no additional cost? Further, the ultimate final

Information Regarding Library Expansion

July 8, 2010

Page 2 of 3

decision on whether to use a 'Clerk of the Works' and at what level of involvement, will be highly dependent 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 made accordingly. Staff will begin the aggressive campaign to raise the remaining amounts of funding needed. Funding Summary The 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 is established at $240,000, which is less than the cost of doing the elevator as a standalone project. In the financial 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 agenda item, showing in excess of $760,000 available beyond minimum requirements. I would suggest the Council consider either using some of those funds to pay for the City share or extend the loan to at least a ten year payback. If the Council decides to add the engineering costs for the bid documents to include the energy efficiency upgrades, and does not decide to award the bid, another $15,000 will have 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 other words, the funds would be available in the reduction on the cost for energy that would have otherwise been spent in the budget. No further impacts are needed for the purpose of this discussion for the financial consideration. On the practical side of the discussion, the Council will either have to authorize some sort of debt or internal loan in order to provide the upfront costs associated with the annual 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. If the 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 Mary Smith Donation. Summary Through the tremendous gift of Mary Smith, the library expansion and accessibility project now appears to be one that can be accomplished. Further, it can be done at less taxpayer involvement than the simple accessibility project. Also, it appears that the proposed bidding schedule will position the City at the best time in recent memory to being doing a project. Finally, there appears to be several viable options for the Council to consider for funding the City’s 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.

Information Regarding Library Expansion

July 8, 2010

Page 3 of 3

To: From: Date: Re:

Presque Isle City Council Sonja Plummer-Morgan, Librarian July 12, 2010 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 socioeconomic 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 area nonprofits, 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 and individual 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

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 was scaled 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 existing building. 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, and recreation services. 8. Our computers or wireless internet connection was used an estimated 37, 353 times. At peak 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 capacity at any given time is approximately 150 persons.
10. Rehabilitating current HVAC systems will allow for smarter energy use and make the

library eligible for refunds by Efficiency Maine for upgrades.

Sheet1

Mark & Emily Turner Memorial Library
7/6/2010 Loose Fixtures & Furnishings Budget Proposal
Category Interior Design and Finishes Two ADA-approved computer kiosks Display case Two Tables with seating for 4 Twelve kiosk chairs Total Book Stacks & Shelving Stacks (bookshelves) Book Carts/trucks Budget $2,000 $700 $2,500 $3,000 $8,200 Total

$9,500 $500 $10,000

Safety & Security Cameras, Maintenance, Installation Telecommunications Total Miscellaneous Outdoor Ash/Trash Receptacle Loose Furnishings Contingency Total Public Computers New/Replacement Computers 15 x $750 Total Total Expenses

$15,000 $1,000 $16,000

$980 $1,000 $2,500 $4,480

$11,250 $11,250 $49,930

Page 1

Emily & Mark Turner Library in Presque Isle, Maine Proposed Addition and ADA Compliance Project
Expenses
Building & Site Building Addition (est at $157 per sq ft) Elevator Sprinkler System Ventilation System Tie In & Require Renovations to Exising Bldg Site work Subtotal Administrative Costs Architectual/Engineering Fees Advertising, Testing, & Printing Subtotal Reserve Continguency Subtotal $895,000 $70,000 $75,000 $80,000 $105,000 $40,000 $1,265,000 $120,000 $5,000 $125,000 $100,000 $100,000 Library Trustees Mary Smith Donation City ref ADA City ref Energy Subtotal Additional Fund Raising

Revenues
$250,000 $1,000,000 $240,000 $165,000 $1,655,000 $49,930

Revised Total Cost

$1,704,930

Total Project
Bid Alternatives, Other Energy Savings (Windows & Flashing) Fees associated with Bid/Alternative @10% Fixtures, Furnishings Subtotal

$1,490,000

$150,000 $15,000 $49,930 $214,930

Revised Total Cost

$1,704,930

7/8/2010

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.

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 until 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 material 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 the necessity of verification of the proper application of the disbursed funds by the City. This Contract and the Escrow Agent’s 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 Library’s 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

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 Donor

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 for

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 Agent for any expenses, including attorney fees, that escrow agent incurs as a result of any legal proceedings other than criminal proceedings affecting this escrow agreement or the performance of Escrow Agent’s 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

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 it

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

15.

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

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 either party in writing may request mediation. The parties shall engage a mediator acceptable to both of 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 entered upon 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.

19. matter.

This Contract constitutes the entire understanding of the parties about its subject This

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

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 _______________________________ WITNESS By: _______________________________ Its: ____________ hereunto duly authorized.

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

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT:
Accept Brownfield Grant

AGENDA ITEM NO.

6

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.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

MH

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DG

JT

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WE

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

MEMORANDUM TO: James A. Bennett, City Manager CC: Larry Clark, PIIC; Gerry James, PIPW FROM: Dana H. Fowler, Solid Waste Director SUBJECT: Webber Oil Company Property Site Clean-up Cost Estimate DATE: July 1, 2010 OBJECTIVE: The objective of this memo is to estimate the cost of clean-up of petroleum contamination at 42 Chapman Street owned by Webber Oil Company and to determine 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 the Presque Isle Industrial Council and Gerry James of the Public Works Department to gather 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 a “guesstimate”. An accurate cost estimate can only be done when the Phase II Site Assessment 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, the Phase II report will take 3-4 months to complete. A Phase I assessment was done in 2008 for 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 was provided in January 2009 correspondence by the DEP. The 2,000 tons equates to 1,500 cubic 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 private contractor 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 a local 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 portion of the landfill tipping fees. To reach the 20% match amount of $43,395, one could use a portion of the landfill tipping 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 the 2008 Phase I site assessment and a Phase II Site Assessment is required for a more accurate cost estimate.

Page 2 7/8/2010 Jim Bennett memo

WEBBER OIL PROPERTY REMEDIATION ESTIMATED COST Item
EXCAVATION Trucks Excavator BACKFILL Trucks Dozer Roller Gravel LOAM Loam 185 Cubic Yards $ 35/Cubic Yard $ 6,475 Subtotal for Loam $ 6,475

Qty
5 1

Units
40 Hours 40 Hours

Unit Cost
$ 80/Hour $ 150/Hour

Est. Cost Est. Cost
$16,000 $ 6,000 Subtotal for Excavation

$ 22,000

5 1 4 1800

40 Hour 40 Hour Days Cubic Yards

$ 80/Hour $16,000 $ 80/Hour $ 3,200 $ 500/Day $ 2,000 $ 10/Cubic Yard $18,000 Subtotal for Backfill

$ 39,200

LANDFILL TIPPING FEE Tipping Fee 2000 CONSULTANT Labor Expenses SECURITY FENCE Fence EROSION CONTROL 1 TRAFFIC CONTROL Flagger

Tons

$40/Ton

$80,000 Subtotal for Landfill Tipping $12,500 $ 2,500 Subtotal for Consultant

$ 80,000

100 1

Hour Lump Sum

$125/Hour

$ 15,000

600

Linear Feet

$10/LF

$ 6,000 Subtotal for Security Fence $ 6,000 $ 2,500 Subtotal for Erosion Control

Lump Sum

$ 2,500

1

80 Hours

$30/Hour

$ 2,400 Subtotal for Traffic Control Subtotal

$ 2,400 $173,575

CONTINGENCY 1 Lump Sum 25% $43,400 Subtotal for Contingency TOTAL $ 43,400 $216,975

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT:
Consent Agenda Items

AGENDA ITEM NO.

7 - 11

INFORMATION:
Ballot for MMA 2010 – 2012 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 City’s Annual Wellness Picnic 11. Approve establishing a profit-sharing retirement plan in the form of the ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust 7. 8. 9. 10.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

MH

RS

DG

JT

CH

ES

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Be it resolved by Councilor , seconded by Councilor , to approve consent agenda item as follows: * Ballot for MMA 2010 – 2012 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 City’s Annual Wellness Picnic *Approve establishing a profit-sharing retirement plan in the form of the ICMA Retirement Corporation Governmental Profit Sharing Plan & Trust

Presque Isle City Council Minutes Date: Monday, June 7, 2010 Time: 6:00 PM Place: Presque Isle City Council Chambers Call to Order – Roll Call Present: Chairperson Jennifer Trombley, Councilors Mel Hovey, Randy Smith, Donald Gardner, Calvin Hall, 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 Crow’s Nest Restaurant and Event Center LLC, 150 Maysville Street, 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 (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 Crow’s Nest Restaurant and Event Center LLC, 150 Maysville Street, 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. Vote – 7-0 2. Approve Malt, Spirituous and Vinous Liquor License applications for Xin Chen, d/b/a My Tai Inc., 449 Main Street, Presque Isle; and James Stacey, d/b/a The Crow’s 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; and James Stacey, d/b/a The Crow’s Nest Restaurant and Event Center LLC, 150 Maysville Street. Vote – 7-0 Citizen Comments Geary Bonville, resident at 240 Chapman Road, referenced his selling and hauling of clay (5,000 yards) to cover the landfill. Mr. Bonville stated that the City has been paying a Canadian company to haul off scrap metal and would like to have the opportunity to take over the contract. This would assist him to complete developing his mobile home park in order to make it profitable so he may pay his taxes.

2 – City Council Meeting Minutes – June 7, 2010

Old Business 3. Discuss Tower Issue Be it resolved by Councilor Elish, seconded by Councilor Gardner, that the City Council approve the lease agreement with two amendments 1) concerning the sublease and 2) the language regarding the two current users which should not pay any rent. Vote – 4-3 Opposed Councilors Hovey, Emily Smith and Hall 4. Welcome Sign Update Per the request of the City Council, City Manager Bennett provided an estimate of approximately $4,000 to replace the “Welcome” sign located at the northern end of the City. Consensus of the City Council supported seeking donations, with a possible City match (one third of the cost), in order to get this project accomplished. 5. Authorize “Request for Bid” for section of Canterbury Street Be it resolved by Councilor Hovey, seconded by Councilor Elish, to authorize “Request for Bids” for the section of Canterbury Street as proposed by the City Manager. Vote – 7-0 6. Report on Crosswalk Issue City Manager Bennett provided an update regarding the contractual work in road striping and crosswalks. Staff will request a bid alternative to include that the crosswalks across Main Street be done first. 7. Update regarding Horse Manure Ordinance Police Chief Naldo Gagnon provided an update regarding Horse Manure Ordinances. Chief Gagnon indicated that only one community (Houlton) in the State of Maine has such an ordinance, which refers only to parades. Chief Gagnon indicated that it would be very difficult to enforce and would have to be complaint driven in order to act. Consent Agenda 8. Approve Warrants #12 - #20 totaling $2,631,594.96 9. Approve City Council minutes for the April 5, April 19 and May 3, 2010 meetings 10. Approve the Return of Votes Cast for the MSAD #1 District Budget Validation Referendum Election held on May 18, 2010 11. Appoint Tenant Commissioner to Presque Isle Housing Authority’s Board of Commissioners Be it resolved by Councilor Hall, seconded by Councilor Gardner, to approve the consent agenda items with #11 being removed from the list. Vote – 7-0 New Business 12. Request to establish a Dog Park

3 – City Council Meeting Minutes – June 7, 2010 Jacqueline Goodine, resident at 15 Third Street Apt. G, requested support from the City Council in establishing a Dog Park by allowing the use of a City-owned parcel of land for this use. Ms Goodine indicated there were several volunteers ready to pursue this project. City Manager Bennett suggested that City Councilors review potential sites and proposed plan regarding establishing 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 Crow’s Nest and Event Center LLC Be it resolved by Councilor Hall, seconded by Councilor Elish, to approve a Presque Isle Development Fund loan from the Presque Isle Development Fund to James A. Stacey, d/b/a Crow’s Nest Restaurant and Events Center, LLC in the amount of Two Hundred Thousand Dollars ($200,000.00), for a period of six (6) years at an interest rate of two and a quarter percent (2.25%) per annum. Payments of interest only for initial two (2) years and principal and interest payments for the remainder of the loan. Vote – 7-0 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 proposed sewer easement for Dyer Street to Parsons Street. Vote – 7-0 15. Sale of Gouldville School Be it resolve by Councilor Hovey, seconded by Councilor Randy Smith, to authorize the City Manager to enter into a purchase sale agreement with Aroostook County Action Program for the sale of the former Gouldville School located at 44 Park Street at a purchase price of $165,000.00. Vote – 7-0 16. Create a City Economic Development Fund of $154,600 Be it resolved by Councilor Hovey to apply the $154,600 against the items that are not in the City’s budget that are being used to purchase the Chapman Street facilities. Resolved died due to the lack of a second. Be it resolved by Councilor Hall, seconded by Councilor Gardner, to approve creating an economic development fund for the use by the City from the remaining proceeds from the sale of Gouldville School. Vote – 4-3 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 work with various groups to develop a strategy to accomplish the upgrades with minimal City involvement. Vote – 7-0 18. Approve contract with Maine Public Utilities Commission for Energy Efficiency and Conservation Block Grant Be it resolved by Councilor Randy Smith, seconded by Councilor Emily Smith, to approve the American Recovery and Reinvestment Act agreement between the State of Maine, Public Utilities Commission and the City of Presque Isle. Vote – 7-0

4 – City Council Meeting Minutes – June 7, 2010 19. Allonge for Solid Waste Bond Anticipation Note Be it resolved by Councilor Hovey, seconded by Councilor Randy Smith, that the City Council authorize the Chairperson of the City Council and the City Treasurer enter into an agreement with Key Bank that extends the maturity date of the City’s Bond Anticipation Note from August 20, 2010 to December 31, 2010 and reduces the interest rate from 4.12% to 3.99%. Vote – 7-0 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 convey a certain parcel of land situated on Main Street to Haines Manufacturing Co., Inc. as outlined in an agreement between Haines Manufacturing Co., Inc. and the City of Presque Isle dated March 8, 2008 for the sum of $20,000 and the City Manager be authorized to sign the Municipal Quitclaim Deed. Vote – 7-0 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 funds returned to the City from Haines Manufacturing Company, Inc. to purchase materials to construct a parking area at Peace Park not to exceed $5,000. Vote – 7-0 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 the private donation graciously offered to the City in the amount of $1,000,000 for the Proposed Expansion Project of the library to improve accessibility and expand the library building conditional upon the City Manager coming back to the City Council for final approval of the Building and Funding Plan. Vote – 6-1 Councilor Hovey Opposed 23. Authorize Phase I of City’s technology upgrade Be it resolved by Councilor Gardner, seconded by Councilor Emily Smith, to authorize Phase I of the City’s technology upgrade. Vote – 7-0 Manager’s 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 $9,438.93 with funds from the Solid Waste Department reserve account. Vote – 7-0 25. Payroll Warrant Councilor Hovey indicated that he would not be able to sign the payroll warrant for several weeks as he would not be available for the rest of the summer. Councilor Randy Smith volunteered to sign the payroll warrant until Councilor Hovey resumes signing.

5 – City Council Meeting Minutes – June 7, 2010 Manager Bennett stated that by replacing the Centrex System, the City will be saving approximately $900 per year; Councilor Emily Smith will be available to accept the Barbara Bush $25,000 grant on behalf of the City; the CDBG downtown project is underway; on June 10th the Special Olympics will be held in Presque Isle; Public Works’ sand bid is anticipated to be $40,000 less; paving projects are ahead of schedule; the Indoor Pool’s slide has proven to be a positive change; and Payroll has been transferred back “In-house”. Be it resolved by Councilor Gardner, seconded by Councilor Randy Smith, to approve the Manager’s report as presented. Vote – 7-0 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. Vote – 7-0

Attest: Nancy G. Nichols, City Clerk

2010 WARRANTS Warrant #21 Warrant #22 Warrant #23 Warrant #24 Warrant #25 $ 47,599.49 $847,042.24 $265,486.17 $115,975.22 $715,646.77

TOTAL

$1,991,749.89

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT: AGENDA ITEM NO.

12

Appoint Tenant Commissioner to Presque Isle Housing Authority’s 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.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

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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 .

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT:
Presentation of Tax Commitment and set 2010 Mil Rate

AGENDA ITEM NO.

13

INFORMATION:
Copy of memo from Treasurer Priscilla Webb attached.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

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Approve Resolve as proposed in City Treasurer’s memo.

To: From: Date: Subject:

Presque Isle City Council Priscilla Webb, City Treasurer June 30, 2010 Set mil rate for 2010

BE IT RESOLVED by..............and seconded by ………………….., that the City Council authorize the Tax Collector to collect payments of year 2011 taxes in advance. BE IT RESOLVED by..............and seconded by…………………, that the 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 rate of 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 per annum. Interest on unpaid taxes will begin to accrue on October 14, 2010. BE IT RESOLVED by..............and seconded by ……………., that abatements 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 and personal property shall be _______ mils with $0.00 to be taken from the City’s undesignated fund balance.

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT:
Presentation of Tax Commitment and set 2010 Mil Rate

AGENDA ITEM NO.

13

INFORMATION:
Copy of memo from Treasurer Priscilla Webb attached.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

MH

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Approve Resolve as proposed in City Treasurer’s memo.

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 the Emergency Reserve is a minimum of 4% of budgeted expenditures.

2010 Budgeted Exependitures Add: MASD #1 County Tax TIF

$

Minimum Surplus Balance Required

$

10,682,150 5,375,744 562,365 171,104 16,791,363 12.00% 2,014,964

General Fund Unrestricted Undesignated Balance (Surplus) At December 31, 2009 Less: Lien Release from Maine, Montreal, & Atlantic Railway Balance at June 30, 2010 Excess available $

2,796,016 (20,000) 2,776,016 761,052

Calaculation of balance to be maintained in Emergency Reserve Balance In Emergency Reserve At December 31, 2009 2010 Appropriation Balance at June 30, 2010 4% of Budgeted Expenditures

$

1,448,352 94,550 1,542,902

$

671,655

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT:
Updated Municipal Revenue and Expenditure Forecast

AGENDA ITEM NO.

15

INFORMATION:
Forecast provided by Treasurer Priscilla Webb.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

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No action required.

MEMO TO: FROM: DATE: SUBJECT: Presque Isle City Council Pat Webb, Finance Director July 7, 2010 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. It’s 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 City’s net spending budget will increase each year—even if nothing new is added. For 2011: Significant items that cause the $1 million increase in the City’s budget include in addition to the 3% increase in expenses indicated above: o $150 thousand decrease in Revenue—Revenue 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 thousand—City’s share @ 80% is $140 thousand; o Capital Reserves—following the 5 year plan, an increase of $200 thousand in 2011; o Debt Service—assume 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 doesn’t really matter, what does matter is the dollar amount of taxes that need to be raised each year to cover the budget—using 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.

City of Presque Isle
Summary of Forecasted Tax Requirements - 2010 Budget For the Years 2009 - 2015

2009 ACTUAL CITY BUDGET ONLY TOTAL REVENUES TOTAL EXPENDITURES CITY NET APPROPRIATION TAX CALCULATION Valuation County MSAD #1 TIF City Total Appropriations Less: Amount used from Surplus

2010 BUDGET

2011 FORECAST

2012 FORECAST

2013 FORECAST

2014 FORECAST

2015 FORECAST

4,619,071 10,318,609 5,699,538

4,487,325 10,682,150 6,194,825

4,337,460 11,548,973 7,211,513

4,454,196 11,945,109 7,490,912

4,583,211 12,258,577 7,675,366

4,716,271 12,670,921 7,954,651

4,853,530 13,069,727 8,216,197

473,076,800 560,973 5,218,390 136,372 6,088,475 12,004,210 -

514,670,350 562,365 5,375,744 171,104 6,194,825 12,304,038 12,304,038 299,828 0.0235000 (0.0010210)

519,670,350 579,236 5,537,016 191,104 7,211,513 13,518,869 13,518,869 1,214,831 0.0253500 0.0018500

524,670,350 596,613 5,703,127 211,104 7,490,912 14,001,756 14,001,756 482,887 0.0260000 0.0006500

532,170,350 614,512 5,874,221 231,104 7,675,366 14,395,202 14,395,202 393,446 0.0263600 0.0003600

542,170,350 632,947 6,050,447 251,104 7,954,651 14,889,149 14,889,149 493,947 0.0267500 0.0003900

552,170,350 651,935 6,231,961 271,104 8,216,197 15,371,197 15,371,197 482,048 0.0271200 0.0003700

Net to be raised by local property taxes 12,004,210 Change in Property Taxes Mil Rate Change In Mil Rate 1,039,171 0.0245210 0.0013710

Increase in taxes due to: Increase in School Budget 237,335 Increase in County Budget 6,312 Increase in City Budget 180,552 Decrease in Use of Surplus 550,000 Increase in TIF 64,972 Total Change in Property Tax Revenue 1,039,171 Amount Attributable to Valuation Increase 272,171

157,354 1,392 106,350 34,732 299,828 977,448

161,272 16,871 1,016,687 20,000 1,214,831 126,750 7/8/2010

166,110 17,377 279,400 20,000 482,887 130,000

171,094 17,898 184,454 20,000 393,446 197,700

176,227 18,435 279,285 20,000 493,947 267,500

181,513 18,988 261,546 20,000 482,048 271,200 PLW

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT: AGENDA ITEM NO.

16

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

INFORMATION:
Attached is a memo from Solid Waste Director Dana Fowler.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

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Be it resolved by Councilor , seconded by Councilor, that the City Council authorize the City Manager to purchase a used truck from Muller Welding of Indianapolis for $44,500. In the event this purchase is not successful, the City Manager may purchase a similar truck from an alternate source.

MEMORANDUM TO: City Council and James A. Bennett, City Manager FROM: Dana H. Fowler, P.E., Solid Waste Director SUBJECT: City Council Agenda Item: “Purchase of Used Grapple Truck” DATE: July 12, 2010 REVIEW of SIGNIFICANT DATA 1. The Department currently owns a 1986 International truck with a grapple and 40 cy dump body, which will not pass motor vehicle inspection. The Department carried $60,000 in its 2010 CIP for a replacement truck. We worked with a local truck dealer to find a used truck similar to what we currently have. He did a search of what was available through his resources and was not able to find a replacement. 2. I had seen an ad for a grapple/dump truck in a publication and contacted the owner, Muller Welding in Indianapolis, Indiana. Muller provided photos and information. The local truck dealer knew a truck sales manager in Indianapolis, who inspected the truck for us and forwarded photos. He stated that he found the truck to be in very good condition and felt the price of $41,000 was fair. 3. Follow-up emails have been sent between Muller and myself about details of the purchase. Muller is willing to deliver the truck for $3,500 which is a very good price according to the local truck dealer. The purchase price for the 1998 Mack with 50 cy dump and 35 ft Atlas loader/grapple is $41,000. 4. I have contacted the City Solicitor regarding the use of an escrow agent to hold the final payment until delivery and passing motor vehicle inspection. The final purchase/sale agreement will utilize the City Solicitor to ensure that there is clear title and to protect the City while the truck is in transit by having Muller retain title until delivery. 5. Section 11 Exemption from Competitive Bidding –Used Items of the Procurement and Disposal Policy states “The City Council may authorize the City Manager to purchase used items with prior approval before the purchase without observing competitive bidding procedure.” RECOMMENDATION Motion by _____________________ and seconded by _______________________ Be it resolved, that the City Council authorize the City Manager to purchase a used truck from Muller Welding of Indianapolis for $44,500. In the event this purchase is not successful, the City Manager may purchase a similar truck from an alternate source.

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT:
Approve Personnel Policy Changes: Per Diem Employee Appeal Process

AGENDA ITEM NO.

17

INFORMATION:
Attached documents include: Memo from City Manager recommending policy changes, copies of the proposed changes and a memo from City Solicitor.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:
City Manager recommends approval.

REQUESTED ACTION:

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Be it resolved by Councilor , seconded by Councilor , to approve proposed changes to Section 9.2.1 Expense Guidelines and Section 7.2.9 Appeal of Suspension or Discharge of the Personnel Rules and Regulations.

9.2.1 Expense Guidelines When possible, an outline of anticipated expenses should be pre-approved by the department head or City Manager. Employees are encouraged to use prudent judgment when incurring expenses. Whenever possible, competitive rates should be sought for lodging. A suggested guideline for daily meal expenses is $25.00 0$35.00, including tips shall follow the current rate of the GSA per diem allowance to include tips. Employees may elect to receive the per diem rate with prior approval of the City Manager. However, the City Manager shall review travel expenses that exceed the guidelines and at his/her discretion may make exceptions based on each situation warranted. Otherwise, Receipts must accompany reimbursement requests. The City Manager shall be entitled to reimbursement for all reasonable expenses, including travel and meals, incurred by the City Manager in the performance of his duties. The City Manager will maintain records and written receipts as required by the City's policy or the City Manager may accept the GSA per diem allowance rate in lieu of a direct cost reimbursement. No reimbursement shall be issued without a proper receipt.

Personnel Rules and Regulations 7.2.9 Appeal of Suspension or Discharge The employee may appeal a suspension/discharge to the City Manager within ten (10) working days of notice of suspension/discharge. After reviewing all facts and evidence, the City Manager will put in writing his/her final decision. Should the City Manager find in favor of the suspended/discharged employee, he/she may reinstate a suspended/discharged employee at any time and may authorize back pay. The City Manager’s decision shall be final. The employee may appeal a discharge to the City Council within fifteen (15) working days of the notice of discharge. After reviewing all facts and evidence the City Council will put in writing their final decision. Should the City Council find in favor of the discharged employee, they may reinstate a discharged employee and may authorize back pay.

City of Presque Isle, Maine
The Office of City Manager

James A. Bennett
Email: jbennett@presqueisleme.us

MEMORANDUM
TO: FROM: DATE: RE: Honorable City Council James A. Bennett, City Manager July 8, 2010 Personnel Policy Changes

On Monday evening, you are being requested to endorse two changes to the personnel policy. They are listed separately on the agenda since they are independent actions. Per Diem Meal Change (section 9.2.1): Included in the package is a complete copy of section 9.2.1 with the suggested changes in strikeout format (addition in underline and deletions in strikeout). The changes are three fold. First, it removes the old dollar amount in the policy as the standard and applies the applicable IRS rate. Second, it allows an employee, with prior approval of the City Manager to receive the per diem rate. Finally, it clarifies that the City Manager can receive the per diem rate for his/her travel. Passage is supported. Appeal Process (section 7.2.9): Included in the package are the suggested changes to the policy in strikeout format as well as an email from the City Attorney endorsing the changes. The policy is removing the ability of an employee to appeal personnel decisions to the City Council, which is inconsistent with the Charter. Passage is supported.

12 Second Street

Presque Isle, ME 04769-2459

207.764.4485

Fax 207.764.2501

PRESQUE ISLE CITY COUNCIL
MEETING OF JULY 12, 2010
AGENDA INFORMATION SHEET: SUBJECT: AGENDA ITEM NO.

18

Approve Management Response to Management Letter from Runyon, Kersteen, Ouellette as a result of the 2009 Audit

INFORMATION:
Copy of the Management Letter submitted from Runyon, Kersteen, Ouellette is attached along with a memo of response from Treasurer Priscilla Webb.

APPROVAL AND/OR COMMENTS OF CITY ADMINISTRATOR:

REQUESTED ACTION:

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Be it resolved by Councilor , seconded by Councilor , to approve the Management’s response to the Management Letter from Runyon, Kersteen, Ouellette as result of the 2009 Audit.

To: From: Date: Subject:

City of Presque Isle Audit Committee Priscilla Webb, Finance Director June 22, 2010 2009 Management Letter

Please accept the following responses from the Management of the City of Presque Isle to the comments made by the auditors of Runyon, Kersteen and Ouellette in conjunction with the 2009 audit of the City’s financial statements. Employee Reimbursement Forms Normally Employee Reimbursements do require approval by both the Department Head and City Manager or Treasurer on the Travel Expense Log (Exhibit A). The Treasurer verifies all receipts and cross-references them back to the itemization on the Log. The exception has been mileage reimbursements for local travel. The Travel Expense Log covers one week, was meant for training, seminars, etc., and does not lend itself to reimbursing for a series of dates and miles. Therefore we had allowed employees to submit a list showing dates, miles driven, destination, and purpose along with a Purchase Order with Department Head approval for reimbursement—the Treasurer checked the PO off when the check was signed but didn’t actually sign off on the PO or the Log. One of the items cited by the auditors was such a reimbursement. In order to simplify the process but keep the required documentation, we’ve added a second Travel Expense Reimbursement Log (Exhibit B) meant primarily for local travel. The second item cited was one where the Log was attached and the cross-referencing was done, the missing authorization was an oversight. All Employee Expense Reimbursements will require the attached of either Exhibit A or Exhibit B and be authorized by the Department Head and City Manager or Treasurer. Priscilla Webb, Finance Director Wage Rate Form The payroll function was in a state of transition when the audit occurred. Documentation was in disarray. The City now has a full-time payroll clerk and the situation is now under control. All pay rate changes are documented using the Employee Pay Rate Change Form (Exhibit C) and are approved by the Resources Director and the City Manager. LaNiece Winslow, Resources Director

CITY OF PRESQUE ISLE

TRAVEL EXPENSE LOG
Name: Title: Mileage: At current IRS rate per mile. Check with Finance Director for exact rate. Suggested guideline for daily meal expenses: $25.00 - $35.00, including tips. Dates of Travel:
Purpose and Location of Travel: Total Miles Driven: Date Sun Mon Current IRS Rate: Tue Wed 0.50 Reimbursement: Thu Fri Sat $0.00 Totals Total: $0.00

Through:

Registration Lodging Rental Car Tolls Gas Breakfast Lunch Dinner Miscellaneous Explain on Back Less: Advance: Credit Card: Direct Billing:

Balance Due Employee:

$

-

I certify that the above is a true statement of expenses incurred for which I ask reimbursement. I further certify that no alcoholic beverages are included in the costs that are being reimbursed and that no other reimbursement from other sources will be received.

Employee Signature: Department Head Signature: Approved by:
(City Manager or Treasurer Signature)

Date Submitted:

Exhibit A

City of Presque Isle Travel Expense Reimbursement Form
Name Current Mileage Reimbursement Rate Destination Date Purpose Department $ Miles Totals Less: Advance: Credit Card: Direct Billing: Amount Other ** 0.50 -

Balance due Employee

I Certify that the above is a true statement of expenses incurred for which I ask reimbursement. I further certify that no alchohoic bevereges are included in the costs that are being reimbursed and that no other reimbursement from other sources will be received. Employee Signature: Department Head Approval Approved By: (Finance Director or City Manager) ** Please attach receipts Exhibit B Date:

The City Of Presque Isle Employee Pay Rate Change Form
Name: ________________________________ Department: ____________________

Position Title:______________________________________ Employee #______________ Effective Date:______________________ CURRENT Hourly Rate (Non-Exempt) Weekly Rate (Exempt) REQUESTED CHANGE Hourly Rate (Non-Exempt) Weekly Rate (Exempt) REASON FOR CHANGE CODE

CHANGE CODES PI -- Promotion MI -- Merit COLA --- Cost of Living Adjustment LON -- Longevity R -- Range _______________________________ ST -- Step ________________________________ RC -- Reclassification DM -- Demotion

Date: _________________

Department Head Signature: ___________________________

Approved by City Manager and Resources Director:

(City Manager Signature)

Date

(Resources Director Signature)

Date

Copy provided to Payroll Clerk: (Payroll Clerk Initials) Date
Exhibit C