Town of Mount Desert
Board of Selectmen
Regular Meeting Minutes
August 1, 2011
A meeting of the Board of Selectmen was held this date in the Meeting Room, Town Hall, Northeast Harbor, Maine.
Those present included: Chairman Tom Richardson; Selectmen John Macauley, Rick Mooers, and Dennis Shubert; staff members Town Manager Durlin Lunt, Fire Chief Mike Bender, Public Works Director Tony Smith, Harbormaster Shawn Murphy, Finance Director John Graves, and Town Clerk/Recording Secretary Joelle Nolan; and members of the public.
I Call to order at 6:30 p.m.
Chairman Richardson called the meeting to order at 6:30 p.m.
II Public Hearing(s)
A. None
III Minutes
A. Approval of minutes from July 18, 2011 meeting.
MOTION: Selectman Shubert moved, seconded by Selectman Macauley, to approve the minutes from July 18, 2011 as amended. The vote was unanimous in favor, 4-0.
IV Appointments & Resignations
A. Accept resignation of Jerry Miller from the Planning Board effective immediately.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to accept the resignation of Jerry Miller from the Planning Board effective immediately. The vote was unanimous in favor, 4-0.
B. Appoint William Johnston as part time launch operator for the Northeast Harbor Marina, effective August 2, 2011 at a pay rate of $15.00/hr.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to appoint William Johnston as part time launch operator for the Northeast Harbor Marina, effective August 2, 2011 at a pay rate of $15.00/hr. The vote was unanimous in favor, 4-0.
V 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 Municipal Review Committee, Inc. regular meeting of the MRC Board of Directors- July 27, 2011.
B. Acknowledge receipt of Clean Water Clean Shores project 2011 scheduled for September 17, 2011.
C. Acknowledge receipt of Maine Department of Transportation Preconstruction Conference minutes from May 2, 2011 for the Stanley Brook Bridge Replacement Bridge Project.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to acknowledge receipt of Consent Agenda items A – C. The vote was unanimous in favor, 4-0.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to take agenda item VII Old Business A, B, and D out of order. The vote was unanimous in favor, 4-0.
VII Old Business
A. Board of Selectmen vacancy, discussion
Town Manager Lunt reported that ads regarding the vacancy went out as discussed at the last Board meeting. Chairman Richardson noted Mike MacDonald, Jim Bright, Marilyn Damon, and Martha Dudman had indicated interest in being appointed. He suggested starting the elimination process by considering a representative from Northeast Harbor. Mr. Bright asked to have himself removed for consideration. He is a member of the Mount Desert Island School District Trustees, and does not want to give up that position. Ms. Damon said she would support the appointment of Martha Dudman. Chairman Richardson asked for discussion from Board members; there being none, he asked for a motion.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to appoint Martha Dudman to the vacant Board of Selectman position for a term beginning immediately through May 7, 2012. The vote was unanimous in favor, 4-0.
Town Clerk Nolan swore in Ms. Dudman; and Ms. Dudman joined the Board meeting.
B. Town Manager contract, discussion and approval
Chairman Richardson gave a very brief overview of the consensus of the Board to renew Town Manager Lunt’s contract for a three year term.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to renew Town Manager Lunt’s contract for a term of three years effective August 2, 2011. The vote was in favor, 4-0-1, with newly appointed Selectman Dudman abstaining.
D. Northeast Harbor Marina Renovation Project, update.
Noel Musson, from CES, Inc., referring to the July 14, 2011 CES, Inc. letter, explained there are currently two issues to address: contingency planning, and construction administration and inspection services. He and Travis Noyes are present at the behest of the Marine Management Marina Working Group to provide support.
Chairman Richardson asked if there was a contingency amount when the revisions were done with E. L. Shea, and Mr. Musson replied no.
Rick Savage, from the Marine Management Marina Working Group, commented that the Working Group was so concerned about staying within the $2.2 million funding level, the need for contingency was overlooked. He also stated the Working Group did not have all the information regarding a contingency. Mr. Savage went on to say the Working Group is comfortable with the finished design and builder; it is a realistic figure. He described the marina as a cash cow, commenting that revenue is way above average this year. The amount CES, Inc. is requesting is about 10% of the total cost. The marina is 57 years old and repairs have been “piece-meal” over the years. It is time to reinvest in the infrastructure. The Chamber building is costing money; and the
Harbormaster building was built as a seasonal structure that has been winterized bit by bit.
Selectman Macauley asked where the money would come from and Mr. Savage suggested the marina reserve which is currently $650,000.
Chairman Richardson stated he has a fundamental concern about asking the taxpayers for more money on something they already approved [voted on at Town Meeting].
Selectman Shubert asked Mr. Musson how detailed the plans were that the $2.2 million was based on; Mr. Musson explained the plans were conceptual only. Selectman Shubert suggested if the Town had asked CES for detailed plans, these costs would have been included. A conceptual plan is just that – conceptual. We took our best guess and we were wrong. Selectman Shubert asked Town Manager Lunt about contractual expectations. Town Manager Lunt said there is no contract for the construction management.
Chris Moore, a member of the Marine Management Committee, but not of the Working Group, wondered if a contingency is granted and completely used, and more money is needed, where it comes from. He also said he does not like to see reserve money used elsewhere when the bulkhead is crumbling.
Citizen Kay Graves asked how much the conceptual plan cost, and Mr. Musson replied $25,000 from the Town and $25,000 from a grant. Mrs. Graves indicated that grant money is still taxpayer money.
Travis Noyes, Director of Civil Engineering for CES, reiterated many points made in the June 14, 2011 letter concerning the importance of a contingency fund.
Chairman Richardson confirmed that CES, Inc. is asking for $90,000 for Construction Administration/Inspection costs.
Mr. Moore restated that he has a hard time as a taxpayer spending more money on this project.
Jim Bright, another member of the Working Group, defended the costs – the amount presented was thought to be enough based on the conceptual plan; with a three year lag from conceptual design to actual implementation, more money is needed. The Working Group had discussed the necessity of using a contingency.
Public Works Director Smith suggested the $90,000 for Construction Administration/Inspection costs could save the Town money in the long run. We want eyes on the project daily looking out for the Town.
Chairman Richardson praised the Marine Management Committee and the Working Group for their hard work and diligence; however, he still maintains the project has become more that the Town can afford. He asked if we need all that is proposed; and do we need to look at the project differently.
Mr. Savage asserted that the Board charged a group of citizens with this project; and over a three year period the group did a good job presenting to the Town the best investment for the biggest return for the longest time.
MOTION: Selectman Shubert moved, seconded by Selectman Mooers, to create a 10% contingency reserve from the Marina Unreserved Fund Balance account G60-37300-00.
DISCUSSION: Town Manager Lunt pointed out that the surplus at the end of 2010 was $200,000. Mrs. Graves wondered at what point taking contingency money from this fund would burden the taxpayers. Town Manager Lunt thought at least 5 years, worst case scenario. Selectman Mooers gave some history from his four years on the Board – when the Marine Management Committee had a discussion with the Board and CES, Inc. about the project, cost overruns, instead of contingency, was talked about. And when the question was asked where the money would come from, the answer was the $650,000 reserve fund. The current contingency discussion confuses the original intent of relying on the $650,000 reserve.
VOTE: The vote was unanimous in favor, 5-0.
MOTION: Selectman Shubert moved, seconded by Macauley, to approve payment of $11,900 to CES, Inc. for work already done.
DISCUSSION: Selectman Shubert asked how we got here and how deep are we in it and how much of a hit is CES, Inc. taking. Mr. Musson said when the bids came in, it was obvious the project was more costly; however, they tried to keep expenses to a minimum. Selectman Shubert asked if detailed invoices that include dates, hours, etc have been submitted and Mr. Musson replied detailed bills had not been requested. Selectman Shubert said in spite of his motion, he was uncomfortable voting on it, since detailed invoices have not been received and reviewed by Town Manager Lunt.
MOTION WITHDRAWN: Selectman Shubert withdrew his motion, and Selectman Macauley withdrew his second.
Selectman Shubert stated that someone needs to sit down with CES, Inc. and determine if there alternatives and what the pricing would be. Chairman Richardson said he would not want to see changes now. Mr. Noyes declared CES, Inc. is significantly invested in this project and would hope to have the opportunity to present additional information with the caveat not to exceed the 10% contingency. Chairman Richardson agreed he would like to see a detailed proposal before authorizing expenditures. Board requested that at its August 15, 2011 meeting CES, Inc. present a detailed invoice for the $11,900 and a detailed proposal for the remaining request.
Mrs. Graves observed that she is in favor of the project, but finds it difficult to swallow that the Board is asking taxpayers for an additional $200,000 for contingency within such a short time of voters approving $2.2 million. What happens if there is a real problem with the bulkhead and the reserve has been spent? What assurances can the Board give that the additional spending will be what is presented. Chairman Richardson agreed that it is unfair to the taxpayers. Jim Black, a member of the Marine Management Committee also agreed; however, he commented that it is hard to cover all bases before taking the first shovel dirt.
Selectman Shubert asserted that the Marina Project is unique in that it is self-supporting; if well managed, it will pay-off the bond by itself [and the contingency will not have to be used].
VI Selectmen’s Reports
None presented.
VII Old Business, continued
C. Adoption of Marina Enterprise Fund Budget.
Finance Director Graves referred to his memo dated July 27, 2011. A bond payment in the amount of $113,300 needs to be paid this year. It appears the Marina can sustain the bond payments. However, there is an alternative, which is to use the unreserved fund balance.
Chairman Richardson asked why affect the budget this year? Finance Director Graves replied the payment has to be made in September 2011.
Selectman Shubert suggested it is all the same dollar and he agrees with Finance Director Graves’ recommendation.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley to adopt the Marina Enterprise Budget as presented The vote was in favor, 4-0-1, with newly appointed Selectman Dudman abstaining.
VIII New Business
A. Resident Randy Merchant requests discussion regarding tax club.
Town Manager Lunt reported that he talked with Mr. Merchant today and he now understands what went wrong. Town Manager Lunt acknowledged we need to tighten our procedures; and he recommends reinstating Mr. Merchant’s application for the tax club, and waiving the lien and interest.
MOTION: Selectman Shubert moved, seconded by Selectman Macauley, to reinstate Mr. Merchant’s application to the Tax Club, and to waive the lien, lien costs, and any interest incurred. The vote was unanimous in favor, 5-0.
B. Islesford resident Morris Zuckerman requests discussion regarding overnight parking in the Seal Harbor parking lot.
Town Manager Lunt reported that he has had a follow up conversation with Mr. Zuckerman, concerning his request for overnight parking at the Seal Harbor dock while the road along the harbor is closed for repair, after discussing the issue with Public Works Director Smith, who said the parking problem should be cleared up by next Tuesday. Mr. Zuckerman is satisfied; he had thought the road would be inaccessible all summer. No Board action required.
C. Request for MeDOT and Town to provide right hand turn lane on Route 102 at the Somesville traffic light.
Town Manager Lunt explained that citizen Ellen Kappes has concerns about traffic coming from Southwest Harbor backing up at the Somesville light. In her email to Town Manager Lunt she suggested it would be helpful if someone from the Town is willing to pursue this with MeDOT. Public Works Director Smith said he has talked with MeDOT and this issue is low on their “to do” list due to lack of funding. However, he will continue to make the request to MeDOT on a regular basis.
D. Approval and award of the 2011 Sidewalk Bond Bid.
Finance Director Graves referred to his memo dated July 27, 2011 and said he recommends the Board award the bid to Machias Savings Bank 2.990%. Although Machias submitted another, lower, bid of 2.61o%, it was contingent upon the Town changing banking services to Machias, which would not be worth it.
MOTION: Selectman Shubert moved, seconded by Selectman Macauley, to award the 2011 Sidewalk Bond bid to Machias Savings Bank at an interest rate of 2.990%. The vote was unanimous in favor, 5-0. Selectman Shubert stated he was disappointed in Bar Harbor Bank and Trust’s submission, especially considering the amount of business the Town does with them.
Board then proceeded to take the following action:
TOWN OF MT. DESERT
MEETING OF BOARD OF SELECTMEN
The Board of Selectmen of the Town of Mt. Desert met on August 1, 2011, at the Meeting Room, Town Hall, Northeast Harbor in Mt. Desert, Maine. Present were Thomas G. Richardson, Martha T. Dudman, John B. Macauley, James F. Mooers, and Dennis Shubert being four of the Selectmen of the Town of which there are five, together with the Treasurer and Clerk of the Town, John A. Graves and Joelle D. Nolan. The Chairman presided and the Clerk kept the record. The Selectmen discussed the matter of financing the sidewalk construction. The meeting was open to the public, which was notified by means of posting a notice in public places. Upon motions made and duly seconded, the following votes were unanimously adopted:
Selectman Mooers moved, seconded by Selectman Shubert and Board unanimously
VOTED: Pursuant to authority granted by Section~5772 of Title~30-A, Maine Revised Statutes, as amended, and action taken by the voters of the Town at a Town meeting held May 2 and 3, 2011, and any other applicable authority under the laws of the State of Maine thereto enabling, the Treasurer and a majority at least of the Board of Selectmen of the Town of Mt. Desert, Maine, are hereby authorized to execute and deliver the 2011 General Obligation Bond of the Town in a principal amount not exceeding One Million Five Hundred Thousand Dollars ($1,500,000), to finance the design and construction of improvements to portions of the Town’s sidewalks, including, but not limited to 1) Somesville: State Route 102, Oak Hill Rd. and Pretty Marsh Rd.; 2) Northeast Harbor: Manchester Rd., South
Shore Rd., Rock End Rd., and Neighborhood Rd.; and 3) Seal Harbor: State Route 3 (the Project), to be executed and delivered to Machias Savings Bank on behalf of the Town by the Treasurer and countersigned by a majority at least of the Selectmen of the Town, such Bond to be for a term not to exceed ten (10) years, at an interest rate of 2.990% per annum, and to be on such further terms and conditions as may be agreed to by the Treasurer and a majority at least of the Selectmen of the Town (the "Bond"), said Bond to be dated as of August 26, 2011.
Selectman Mooers moved, seconded by Selectman Macauley and Board unanimously
VOTED: That all actions heretofore taken by the municipal officers of the Town of Mt. Desert relating to the issuance of the Town's 2011 General Obligation Bond be, and they hereby are, ratified, approved, and confirmed.
Selectman Mooers moved, seconded by Selectman Macauley and Board unanimously
VOTED: That pursuant to the requirements of the Internal Revenue Code of 1986, as amended, the Town designates the Bond to be a "qualified tax exempt obligation" of the Town, and that the Town shall not issue in 2011 an aggregate total amount of qualified tax exempt obligations in excess of $10~million. Further, the Town does not reasonably expect to issue qualified tax exempt obligations in an amount in excess of $5~million during 2011.
Selectman Mooers moved, seconded by Selectman Macauley and Board unanimously
VOTED: That the Town shall take any and all actions required under the Internal Revenue Code of 1986, as amended, to maintain the tax exempt status of the interest on the Bond, and to maintain the status of the Bond as a "qualified tax exempt obligation" of the Town and that the Bond may be subject to such further terms and conditions as may be agreed to be a majority, at least, of the Board of Selectmen and the Treasurer of the Town to carry into effect the full intent of this resolution.
Selectman Mooers moved, seconded by Selectman Macauley and Board unanimously
VOTED: That the law firm of Eaton Peabody is hereby designated as bond counsel for the Town to advise the Town with respect to the issuance and sale of the Bond, and to prepare documents and render opinions as may be necessary or convenient for the purpose.
Selectman Mooers moved, seconded by Selectman Macauley and Board unanimously
VOTED: That the municipal officers and officials of the Town are hereby authorized to execute all documents and certificates, and to take all action, including affixing the seal of the Town, as may be necessary or convenient to carry out the full intent of the foregoing votes or any one of them.
E. Approval of carryovers from FY 2010/11 to FY 2011/12, in the amount of $267,465.00.
MOTION: Selectman Shubert moved, seconded by/Selectman Macauley to table this matter until the Board meeting on August 15, 2011. The vote was unanimous in favor, 5-0.
F. MUBEC (Building Code) survey from Maine Municipal Association.
Town Manager Lunt reported the survey is for informational purposes only, no action required. There will be additional information for the Board at its August 15, 2011 meeting.
G. Such other business as may be legally conducted.
None presented.
IX Committee Meeting Reports
A. None
X General Issues
A. None
XI Treasurer’s Warrants
A. Approve Treasurer’s FY 2011 Warrant #12 for $548,790.87 and FY 2012 #13 for $309,243.67.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to approve Treasurer’s FY 2011 Warrant #12 for $548,790.87. The vote was unanimous in favor, 5-0.
MOTION: Selectman Mooers moved, seconded by Selectman Macauley, to approve Treasurer’s FY 2012 #13 for $309,243.67. The vote was unanimous in favor, 5-0.
XII Executive Session
A. Pursuant to 1 M.S.R.A. §405.6.D, Discussion of Labor Contract- Union Negotiations.
MOTION: at 8:07 p.m. Selectman Mooers moved, seconded by Selectman Macauley, to enter into Executive Session Pursuant to 1 M.S.R.A. §405.6.D, Discussion of Labor Contract- Union Negotiations. The vote was unanimous in favor, 5-0.
MOTION: at 8:45 p.m. Selectman Mooers, seconded by Selectman Macauley, to close the Executive Session. The vote was unanimous in favor, 5-0.
XIII Adjournment
MOTION: At 8:47 p.m., Selectman Mooers moved, seconded by Selectman Macauley, to adjourn the meeting. The vote was unanimous in favor, 5-0.
Respectively submitted,
John Macauley
Secretary
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