Town of Mount Desert
Board of Selectmen
Regular Meeting Minutes
February 22, 2011
A meeting of the Board of Selectmen was held this date in the Somesville Fire Station, Somesville, Maine.
Those present included: Chairman Tom Richardson, Selectmen Jean Bonville, Chuck Bucklin, and Rick Mooers, Town Manager Durlin Lunt, Finance Director John Graves, Public Works Director Tony Smith, Harbormaster Shawn Murphy, Town Clerk/Recording Secretary Joelle Nolan, and members of the public.
I Call to order at 5:30PM.
Chairman Richardson called the meeting to order at 5:36 p.m.
The first order of business was to review the Auditor’s report as of June 30, 2010. James W. Wadman, CPA was present, along with his associate Kellie Bowden. Mr. Wadman referred to his Audited Financial Statements Presentation dated February 22, 2011 in which he summarized the contents of the audit by page numbers.
He started his review with “Managements Discussion and Analysis – Fund Highlights”. Although the Undesignated Fund Balance is up significantly from 2009 (27.6% for 2010 and 6.10% in 2009), it is not unusual for Towns with similar structure to have 20% - 30% in the Undesignated Fund Balance. Maine Municipal Association (MMA) recommends maintaining a minimum of 10-12%. Page 9 is the Government Wide Financial Statement; page 11 begins Financial Statements and schedules on the same accounting basis as the Town’s records. Communications with Those Charged with Governance, dated January 13, 2011, explains the process from the auditor’s point of view. Audit Management Letter dated January 13, 2011 was also reviewed. The seven issues, identified as weaknesses in internal controls,
were addressed. Mr. Wadman encouraged the Board and management to understand and to take responsibility for compiling accurate information for the creation of the financial statements.
Selectman Bonville expressed several concerns including: the lateness of the audit and reasons – a pre-audit package is sent to the finance department to help prepare for the audit; the amount of adjusting entries done by the auditors; the need for extra help in the finance department; the lack of financial responsibility; and the fact that no one in the finance department is reading and responding to the monthly financial reports. Mr. Wadman concurred with many of her concerns and agreed some were “red flags”. Selectman Bonville thanked Kathi Mahar for her assistance in the administration office.
Selectman Bucklin said he is disappointed that the audit is so late.
Board thanked Mr. Wadman and his staff for their efforts.
Board recessed at 6:18 p.m. and resumed the meeting at 6:30 p.m. with Selectman Mooers in attendance.
II Minutes
A. Approve minutes of January 31, 2011 and February 7, 2011 meeting.
MOTION: Selectman Bonville moved, seconded by Selectman Mooers, to approve the minutes from January 31, 2011. The vote was unanimous in favor, 4-0.
MOTION: Selectman Mooers moved, seconded by Selectman Bucklin, to approve the minutes from February 7, 2011. The vote was unanimous in favor, 4-0.
III Appointments and Recognitions
A. Acknowledgement of Thank You letter to Mount Desert Firefighters from Neighborhood House Director Hart.
MOTION: Selectman Mooers moved, seconded by Selectman Bucklin, to acknowledge receipt of thank you letter from Neighborhood House Director Anne-Marie-Hart to Mount Desert Firefighters. The vote was unanimous in favor, 4-0.
IV Consent Agenda (These items are considered to be routine, and therefore, will not be allotted Selectmen discussion time on the agenda. The items may be passed by the Selectmen in one blanket motion. Any Board member may remove an item from the “Consent” portion of the agenda for discussion or questions by requesting such action prior to consideration of that portion of the agenda.)
A. Acknowledge receipt of monthly Department Head reports: Public Works, Town Clerk and Wastewater.
B. Acknowledge receipt of letter of resignation from Matthew Bucklin from the Warrant Committee and Mount Desert Island Regional School District Board of Trustees effective immediately.
C. Acknowledge receipt of letter of resignation from Patti Reilly from the Planning Board, effective immediately.
D. Acknowledge letter of acceptance of resignation from Board of Selectmen to Marilyn Damon.
E. Acknowledge Thank You letters sent to Solid Waste and Recycling Committee members.
F. Acknowledge letter sent to Resident Henri Agnese for follow up concerning ice build up on Main Street.
G. Acknowledge receipt of Debt Service Payment Schedule from Maine Municipal Bond Bank.
H. Acknowledge receipt of League of Towns agenda for the February 22, 2011 meeting.
I. Acknowledge receipt of Thank You letter from Island Connections for the use of the Somesville Fire Station.
J. Acknowledge receipt of County Assessment and Allocation letter.
K. Acknowledge receipt of Maine Municipal Employees Health Trust memo regarding monthly insurance rates.
L. Acknowledge receipt of memo from Municipal Review Committee regarding pending penalties for deliveries below Guaranteed Annual Tonnage (GAT).
Selectman Bonville requested discussion of item B. Chairman Richardson explained that the Board is required to appoint a replacement Trustee until the next Annual Town Meeting candidate election. He asked for volunteers from the audience and there were none. Board directed Town Manager Lunt to advertise the position on the Town’s website. Suggestions for a temporary replacement are to be brought to the next Board meeting.
Selectman Bonville noted that under item G, with the refunding of the debt on Mount Desert Elementary School, the town will save $268,505.64.
MOTION: Selectman Mooers moved, seconded by Selectman Bonville, to accept Consent Agenda items A – L, noting the discussion of item B. The vote was unanimous in favor, 4-0.
V Selectmen’s Reports
None presented.
VI Old Business
A. Budget review process continued, 3rd party requests.
Chairman Richardson welcomed those in attendance representing the various 3rd party requests. Board addressed the requests alphabetically, comparing the current request to prior years, and invited comment.
Acadian Little League (a Neighborhood House program) $950, same as last year, no one present.
Bar Harbor Food Pantry $500, same as last year, food costs tripled; there has been a 37% increase in Mount Desert resident useage.
Child & Family Opportunities, new request $400, no one present.
Down East AIDS Network $2,000, last year granted $1,200, serves 43 residents.
Downeast Horizons Inc $5,600 same as last year, serves 5 residents.
Downeast Transportation/Island Explorer $14,000, same as last several years; ridership up 14% from previous year and up 3% from record year.
Eastern Area Agency on Aging $1,500, $500 granted last year, no one present.
Hancock County Homecare & Hospice $1,200, same as last year, 544 visits to Mount Desert residents.
Hospice Volunteers of Hancock County $1,000, same as last year, 13 residents served.
Island Connections $2,000, last year $1,500, additional due to increase in gas costs, part of service is Meals for Me delivery, 60 residents serviced.
Mount Desert Chamber of Commerce $7,450 same as last year, no one present.
Mount Desert Island Historical Society $1,000, up from $500 last year, increase is for assistance with new archival equipment and maintenance.
Mount Desert Island YMCA $7,760 , no monies granted in prior years, 261 Mount Desert residents use Y services, hoping to establish a relationship with the Town.
Mount Desert Lodge No 140 request is for amount equal to taxes assessed, $1011.21 last year, noted the Lodge provides water to the Somesville Fire Station; Lodge lost its tax exempt status a few years ago.
Mount Desert Nursing Association $23,000, $3,000 increase due to inability of many patients to pay; free loan closet results in savings of $56,000 (vs having to pay for or rent equipment). Citizen Anne Funderburk spoke in support.
Mount Desert Nursery School $1,800, up from $1,000, need for interior painting.
Neighborhood House $88,000, same as last year, no one present.
Northeast Harbor Library $20,500, increase of $500; noted an increase in items of repository for Town.
Pine Tree Chapter American Red Cross $1,098, up by $6, 54 residents aided; this chapter does not do blood drives.
Seal Harbor Library Association $4,000, same as last year.
Seal Harbor Village Improvement Society $26,700 up from$22,700 last year; need for a new truck, much of the work done would otherwise have to be done by Town.
Somesville Library Association $10,000 up from $5,500, increase in usage and need for upkeep and books.
Somesville Village Improvement Society $2,000, up from $1,000; additional maintenance formerly done by State and Town.
Washington Hancock Community Agency $1,161, up from $833, 48 households served; request represents only 2% spent last year in the Town.
Chairman Richardson thanked those present and noted the requests will be addressed at a later date.
B. Approve Class I Liquor License (malt, spirituous and vinous) for Judith Swett d/b/a Lighthouse Inn & Restaurant.
Town Manager Lunt stated the Certificate of Insurance has been received and the application is complete.
MOTION: Selectman Mooers moved, seconded by Selectman Bucklin, to approve the Class I Liquor License renewal for Judith Swett d/b/a Lighthouse Inn & Restaurant. The vote was unanimous in favor, 4-0.
C. Employment status of volunteer firefighters, discussion.
The purpose of the memo from Fire Chief Bender was to address the issue of whether or not firefighters participating in an on-call program, should one be initiated, would be considered part-time employees and eligible for benefits. Based on information from Maine Department of Labor, he concluded those firefighters would be considered part-time employees; however, they would not be eligible for any benefit packages.
Board acknowledged receipt of the memo and determined no action was required.
D. Authorization for Harbormaster to purchase and release of funds from the Marina Reserve Account for a 21’ center console with Yanmar diesel inboard boat, Marine Management Committee recommends.
Harbormaster Murphy referred to his memo dated February 11, 2011 and explained summer boaters, David and Donna Reis, would like to donate funds to the Town to purchase a vessel to be used as a passenger launch. He further stated that the dinghy float at the Northeast Harbor marina is overcrowded during the summer months and there are safety concerns. The launch would also increase and improve services, resulting in increased revenues. The Marine Management Committee has reviewed the proposal and unanimously supports the concept. They have also looked at several boats and chosen one, which Harbormaster Murphy has seen.
Chairman Richardson initiated a discussion regarding conditional gifts, whether funds or boat, and that the issue might have to go before town meeting. Future expenditures for maintenance need to be considered.
Selectman Mooers suggested there is already an annual warrant article for conditional and unconditional gifts; however it was determined that that article is specific to the fire department. Kathi Mahar wondered if there is enough money in the existing Marina/boat reserve to purchase the boat, then couldn’t the donation go into the reserve account. Harbormaster Murphy pointed out he very much hopes to have the launch operating this summer.
Selectman Bonville announced she had discussed this with the auditors and under the enterprise system the Board has authority to accept the funds and authorize the spending; however, the auditors say it is wiser to go before town meeting.
MOTION: Selectman Mooers moved, seconded by Selectman Bonville, to include an article in the May 2011-2012 Warrant to accept as a conditional gift monies for the purchase of a vessel as a passenger launch. The vote was unanimous in favor, 4-0.
Selectman Bucklin asked if the Town will run the boat and will a fee be charged. Harbormaster Murphy replied a part-time/seasonal employee will be hired, preferably someone with an existing license. However, the license can be obtained quickly and the cost is only $250. It is likely there will be an increase in the mooring rental fees.
E. Suggested legal language from Maine Municipal Association to amend Plumbing Permit Fee Ordinance.
Board agreed it needed time to review the proposed wording.
MOTION: Selectman Bonville moved, seconded by Selectman Bucklin, to table, until March 7, 2011, the proposed language to amend the Plumbing Permit Fee Ordinance. The vote was unanimous in favor, 4-0.
F. Discussion of meeting notes between Friends of Acadia, Maine DOT and the Town regarding Route 198.
Public Works Director Smith had provided Town Manager Lunt with a summary of his meeting with Friends of Acadia and Maine Department of Transportation (DOT). For the Board, he focused on Route 198 and the fact there is a donor who would like all areas on Mount Desert Island linked by safe bikeways. As for our sidewalk project, there is State money available we can apply for; however, we won’t have an answer before Town Meeting.
Selectman Bucklin asked Public Works Director Smith if Route 198 should be ground or rebuilt, and he replied rebuilt. Selectman Bonville asked if DOT would own and maintain the bikeway, and he replied yes; DOT would enter into an agreement with the donor stating that DOT would maintain forever.
G. Continued discussion regarding Bangor Hydro insurance requirement for Decorative Temporary Pole Attachments, and Maine Municipal Association’s response.
Town Manager Lunt explained the application has to come from the Town and the Town would need to carry an umbrella policy with the required two million dollar liability limits, which would cost an additional $3,000 - $4,000. Selectman Bonville stated the Town cannot absorb that cost. Chairman Richardson suggested an outside entity would have to pay the premium. Kathy Miller, from the Mount Desert Island Historical Society, asked if they could raise the money, could they donate it as a gift. Selectman Bucklin agreed the Town can’t absorb the cost; however he was surprised the Town doesn’t have an umbrella policy. Selectman Mooers doesn’t consider the payment of an insurance policy a gift.
Board directed Town Manager Lunt to ask Maine Municipal Legal Services if a non-profit wants to donate funds to cover the cost of additional insurance, is it considered a gift.
MOTION: Selectman Bucklin moved, seconded by Selectman Bonville, to table this issue until March 7, 2011 pending a reply from Maine Municipal Legal Services regarding what constitutes a gift. The vote was unanimous in favor, 4-0.
H. Manager’s request for guidance of National League of Cities prescription drug card implementation and rollout.
Town Manager Lunt reported the cards are ready to be distributed. He plans to have displays at the Town Office, Northeast Harbor Library, and other public places. It was recommended to promote the cards through the Town’s website and in the Annual Town Report. Board also suggested placing cards at the Neighborhood House and Mount Desert Nursing Association.
I. Memo from Finance Director Graves regarding information on interest rates on costs for sidewalk repairs.
Finance Director Graves referred to his memo dated February 17, 2011. Potential interest rates for estimating the costs for bonding the sidewalk repairs were obtained from a local bank and are: 3.80%/10 years, 4.4%/15 years, and 4.75%/20 years. He commented that short term interest rates are highly volatile and may not hold.
Board then addressed Finance Director Graves’ second memo regarding the drawdown schedule for the Marina Bonds. It appears only the interest payment needs to be raised in the 2012 budget.
Board resumed the sidewalk discussion. Chairman Richardson said, based on borrowing 1.5 million, annual payments would be approximately $200,000 for 10 years or $165,000 for 15 years. Board agreed it did not want to borrow for more than 10 years.
MOTION: Selectman Bonville moved, seconded by Selectman Mooers, to approve adding an article to the 2011-2012 Warrant to authorize borrowing or bonding up to 1.5 million dollars for sidewalk repairs for a period not to exceed ten years. The vote was unanimous in favor, 4-0.
VII New Business
A. Approve Class I Liquor License (malt and vinous) for The Acadia Corporation d/b/a Jordan Pond House.
MOTION: Selectman Mooers moved, seconded by Selectman Bonville, to approve the Class I Liquor License renewal for the Acadia Corporation d/b/a Jordan Pond House. The vote was unanimous in favor, 4-0.
B. Discussion of Credit Card Acceptance proposal.
Board reviewed the memo presented by Kathi Mahar. Town Manager Lunt stated there is virtually no cost to taxpayers and offers a great service. Mrs. Mahar affirmed that the InforME method does not require the town to keep any personal data or credit card data. There would be no phone or internet sales to avoid capturing personal information. This method also limits the town’s liability.
Selectman Bonville suggested there would be extra work for the administration staff. Town Clerk Nolan spoke on behalf of the staff noting all are in favor of this proposal. Requests for the use of credit cards are received daily.
Selectman Mooers asked if this would include the harbor. Harbormaster Murphy said he has a program already in place. Although his program does not store information, it does absorb the cost of the credit card transactions. Citizen Gerard Haraden spoke against credit card use; it is a losing proposition due to the fees. Mrs. Mahar observed from her experience, most people use credit cards on smaller amounts; therefore there is minimal expense and liability.
Selectman Bucklin asked if there has been an increase in the use of Rapid Renewal [on-line motor vehicle registrations]; Town Clerk Nolan said she didn’t have exact figures, however, there is a steady rise. Selectman Mooers pointed out citizens have requested the choice and it is a minimal expense; he is in favor of the proposal. Selectman Bucklin requested future reports detailing how many people are using credit cards and how many are complaining about the fees.
MOTION: Selectman Mooers moved, seconded by Selectman Bucklin, to move forward with the credit card proposal for Town Administrative staff to accept credit cards for over the counter transactions. The vote was unanimous in favor, 4-0.
C. Proposed changes to the Shellfish Conservation Ordinance, request for inclusion in the 2011 - 2012 Warrant.
The proposed changes to the Shellfish Conservation Ordinance, submitted by the Shellfish Conservation Committee, include deleting the current stated fees and allowing the Committee to set the fees on an annual basis, as approved by the Department of Marine Resources. Chairman Richardson asked why changes in the fee structure are to be dealt with by the Committee. Tom Falt, Committee Chairman, explained the Committee would like the flexibility to set the fees yearly. Chairman Richardson suggested obtaining an opinion from Maine Municipal Legal Services regarding who can set fees.
MOTION: Selectman Bucklin moved, seconded by Selectman Mooers, to include the proposed changes to the Shellfish Conservation Ordinance as an article in the 2011-2012 Warrant, subject to determination from Maine Municipal Legal Services regarding who can set fees. The vote was unanimous in favor, 4-0.
D. Discussion of draft copy of the 2012 Warrant.
Board requested that some Planning Board members attend the March 7, 2011 meeting to explain the proposed changes to the Land Use Zoning Ordinance. Board is also looking for total municipal budget figures.
VIII Committee Meeting Reports
A. Zoning Board of Appeals minutes for December 22, 2010 meeting.
MOTION: Selectman Mooers moved, seconded by Selectman Bonville, to accept the Zoning Board of Appeals minutes from December 22, 2010. The vote was unanimous in favor, 4-0.
B. Safety Committee minutes for January 19, 2011 meeting.
MOTION: Selectman Mooers moved, seconded by Selectman Bonville, to accept the Safety Committee minutes from January 19, 2011. The vote was unanimous in favor, 4-0.
C. Revitalization Committee minutes for February 10, 2011 meeting.
MOTION: Selectman Mooers moved, seconded by Selectman Bonville, to accept the Revitalization Committee minutes from February 10, 2011. The vote was unanimous in favor, 4-0.
D. Memo from Salary Survey.
MOTION: Selectman Mooers moved, seconded by Selectman Bonville, to table the issue of the Salary Survey until March 7, 2011. The vote was unanimous in favor, 4-0.
IX Treasurer’s Warrants
A. Approve Treasurer’s Warrant #78 for $460,812.42.
Selectman Bonville asked why the Warrant does not contain a check payable to Dr. Fox for the interest on his property taxes. Finance Director Graves explained when Dr. Fox’s payments were accepted, the interest was paid and what remained due was tax. When his accounts were restored to Tax Club status, the interest “paid” was removed and applied to the tax principle. His accounts now have a zero balance; there was no need to issue a check.
MOTION: Selectman Mooers moved, seconded by Selectman Bucklin, to approve Treasurer’s Warrant #78 for $460,812.42. The vote was unanimous in favor, 4-0.
X Executive Session
A. None
XI Adjournment
MOTION: At 8:50 p.m., Selectman Mooers moved, seconded by Selectman Bonville, to adjourn the meeting. The vote was unanimous in favor, 4-0.
Respectively submitted,
Jean Bonville
Secretary
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