MEETING OF THE BOARD OF SELECTMEN
TOWN OF MOUNT DESERT, MAINE
Monday, January 2, 2007
A meeting of the Board of Selectmen was held this date in the Meeting Room at the Town Office, Northeast Harbor, Maine.
Those present included: Chairman Rick Savage, Selectmen Kathy Branch, Ernest Coombs, Patrick Smallidge, Jeffrey Smith; Town Manager Michael MacDonald; Public Works Director Tony Smith; Police Chief James Willis, Assessor John Brushwein, Harbor Master Shawn Murphy, Finance Director Brent Hamor, Fire Chief Mike Bender, Code Enforcement Officer Kimberly Keene, Recording Secretary Ellen Kappes and members of the public.
I. Call to order.
Chairman Savage called the meeting to order at 6:30 p.m.
II. Minutes
A. Approval of minutes of Regular Meeting of December 18, 2006.
MOTION: Chairman Savage moved to approve the minutes of the Regular Meeting of December 18, 2006 as presented, seconded by Selectman Smith. The vote was unanimous in favor.
III. Appointments and Communications
A. Time Warner Cable notice of rate increase. No action required.
B. Judith Swett license agreement clarification.
Town Manager MacDonald said Ms. Swett's parking lot was partially on Town owned property. The Town has been trying to work things out so that she does not have to move it. She was interested in purchasing the land but was told that the Town may need it in the future. She has objected to the part of the license agreement drawn up by attorneys that says she must name the Town as an additional insured because of the additional cost to her and she wanted to limit the Town's use of the property to one side of a fence. Town Manager MacDonald had drafted a letter to her explaining that the Town could not agree with her. Selectmen agreed with him.
IV. Selectmen Reports
1. Selectman Smallidge commended Officer Edgecomb's performance during an incident in which he was involved.
2. Selectman Smith asked for a change in his email address on the Town web site.
Public Hearing: 6:35 PM Receive Public Comment on Haynes Garage Application for Automobile Graveyard and /or Junkyard permit
At 6:35 PM, Chairman Savage opened the above public hearing.
MOTION: At:6:36 PM, Selectman Smallidge moved to close the above public hearing, seconded by Selectman Branch. The vote was unanimous in favor.
Public Hearing: 6:35 PM Receive Public Comment on 2007 Annual Town
Meeting Budgetary Warrant Articles
At 6:37 PM, Chairman Savage opened the above public hearing, saying the Board had approved the budget at this point.
Jean Bonville questioned several articles. Article #9: She understood the enterprise fund stands alone and that any revenues going in there stay there; any money left over at the end of the year would remain there for improvements, etc. The budget shows a transfer of $100,000 to general funds revenue. She assumed that is to offset the Town's expenses in the marina. Town Manager MacDonald said the $100,000 is over and above $136,000 being charged the harbor for allocated expenses - payroll taxes, insurance, fair share of sewer, garbage collection etc. $100,000 is excess coming out of retained earnings. The auditor said a warrant article would be the proper way to transfer money out of retained earnings and take into the general fund. The marina figures show $168,000 as the bottom line after all expenses
were taken out of the revenue. Mrs. Bonville asked why additional money doesn't stay in the fund. Town Manager MacDonald said traditionally any excess revenue was transferred to general fund. This was an effort to minimize the negative effect of transferring 100% of all harbor revenue. Chairman Savage said this would be much clearer to the public. People can see that the marina is paying its way and producing a "profit". Responding to Mrs. Bonville, Town Manager MacDonald said the additional approximately $65,000 reverts to retained earnings in the enterprise fund. Mrs. Bonville said the general ledger doesn't show what is going on. Town Manager MacDonald said it will show up when the Town gets its new software.
Article #23: Responding to Mrs. Bonville, Chairman Savage said the funds received for reduction of the sewer debt from the federal government do not show up here because the Town has to accept the funds at the Town Meeting and then appropriate them. Responding to Mrs. Bonville's comment that they were talking about 2007, Town Manager MacDonald suggested reordering the articles.
Article #69 and 70: Mrs. Bonville thought these articles should be reversed. Town Manager MacDonald said #69 deals with money the Town already has. Article #70 deals with money it will receive in the future. Article #69 creates the Wastewater Bond Repayment Reserve. She did not understand how the whole amount - $255,000 - could be transferred. She thought $41,793 was appropriated and projected in the 2006 budget as anticipated revenue towards the bond from the federal government. Acadia came up with some more money. Since the Town received that plus the difference, it really can only transfer the difference between the $255,000 and the $41,793. The latter is a revenue the Town anticipated, received and needs to acknowledge for 2006. The credit reserve is not going up by the larger amount; it is going
up by the difference. Discussion about the credit reserve balance followed. Selectmen agreed that Article #69 should be for a $213,207 transfer.
Mrs. Bonville said the Credit Reserve name change to Capital Improvement should occur before funds are transferred to the Capital Improvement account. To do so, several articles would have to be put in a different sequence. Article #73 should transfer any balance over $500,000. Town Manager MacDonald said he and Finance Director Hamor had used the term credit reserve for the first articles because the public is familiar with that name and would understand what was going on. After considerable discussion, the Board agreed to reorder the articles. Articles #74, 73, 29 and 71 should be #29, 30, 31 & 32. The renaming article will be article #29.
Referring to a reserve article, Mrs. Bonville asked if the intent was to distribute the income earned from reserve funds into the reserve funds themselves. She thought that had been the recommendation from the investment committee. She saw no article that would take care of it. Town Manager MacDonald said it was being done internally as advised by the auditor. The reserve fund will be increased automatically.
Mrs. Bonville wondered why the Seal Harbor Yacht Club and the Northeast Harbor Golf Club were not included in the list of Safe Zones. Police Chief Willis said some places may have been overlooked in the process of choosing them. Chairman Savage said the list could be updated.
MOTION: At 7:34 PM, Selectman Smallidge moved to close the public hearing, seconded by Selectman Coombs. The vote was unanimous in favor.
V. Old Business
A. Approve annual stray cat and dog agreement with Small Animal Clinic, Ellsworth.
MOTION: Selectman Smith moved to approve the above, seconded by Selectman Coombs. The vote was unanimous in favor.
VI. New Business
A. Approve Haynes Garage Automobile Graveyard Permit.
MOTION: Selectman Coombs moved to approve the above renewal permit, seconded by Selectman Smith. The vote was unanimous in favor.
B. Approve bids for 2007 NEH Marina float project; individually by lowest price per component.
Town Manager MacDonald said the State hasn't replied yet with its preferred method. The cost of freight was included in the EBS bid. He and Harbor Master Murphy had considered awarding the whole thing to EBS. The other bids did not include freight. Harbor Master Murphy said the State has problems with some of EBS's lumber. Chairman Savage suggested approving the higher amount, $39,406.16, in order to meet the 10-day time frame, leaving the choice to Harbor Master Murphy's discretion. He could still purchase the materials on an item by item basis.
MOTION: Selectman Smallidge moved to approve an amount not to exceed $39,406.16 for the above, seconded by Selectman Coombs. The vote was unanimous in favor.
C. Approve Verizon Application for Pole Location, South Shore Rd. Approx. 312 ft NE of Smallidge Point Rd.
MOTION: Selectman Smallidge moved to approve the above, seconded by Selectman Coombs. The vote was unanimous in favor.
VII. General Issues
A. Approve budgetary Warrant Articles.
MOTION: Selectman Smith moved to approve the above with the recommended changes, seconded by Selectman Coombs.
Finance Director Hamor said line item #2109 should be increased from $2,500 to $3,500 to include a dedicated line for different internet access downstairs in the municipal building. Article #14 should therefore be increased by $1,000.
Town Manager MacDonald said Article 25 should be removed.
The vote for the above was unanimous in favor.
Selectmen reviewed the articles in order:
#7 Dog Welfare: Mrs. Bonville said "credit reserve account" should be removed from Article #7.
MOTION: Selectman Smallidge moved to approve the above as amended, seconded by Selectman Branch. The vote was unanimous in favor.
#8 Selectmen: MOTION: Selectman Smallidge moved to approve Article #8, seconded by Selectman Coombs. The vote was unanimous in favor.
#9 revenue transfer: MOTION: Selectman Smallidge moved to approve Article #9, seconded by Selectman Coombs. The vote was unanimous in favor.
#10 excise taxes, etc: MOTION: Selectman Smallidge moved to approve Article #10, seconded by Selectman Smith. The vote was unanimous in favor.
#11 municipal: MOTION: Selectman Smallidge moved to approve Article #11, seconded by Selectman Smith. The vote was unanimous in favor.
#12 police: MOTION: Selectman Smallidge moved to approve Article #12, seconded by Selectman Coombs. The vote was unanimous in favor.
#13 fire: MOTION: Selectman Smallidge moved to approve Article #13, seconded by Selectman Branch. The vote was unanimous in favor.
#14 communications: MOTION: Selectman Smallidge moved to approve Article #14 as amended to $189,917, seconded by Selectman Branch. The vote was unanimous in favor.
#15 highways, etc.: MOTION: Selectman Smallidge moved to approve Article #15, seconded by Selectman Coombs. The vote was unanimous in favor.
#16 waste collection: MOTION: Selectman Smallidge moved to approve Article #16 as amended to $189,917, seconded by Selectman Branch. The vote was unanimous in favor.
#17 buildings & grounds, etc.: MOTION: Selectman Smallidge moved to approve Article #17 as amended to $189,917, seconded by Selectman Branch. The vote was unanimous in favor.
#18 compliance: MOTION: Selectman Smallidge moved to approve Article #18 as amended to $189,917, seconded by Selectman Branch. The vote was unanimous in favor.
#19 other services: MOTION: Selectman Smith moved to approve Article #19, seconded by Selectman Smallidge. The vote was unanimous in favor.
#20 village associations: MOTION: Selectman Smallidge moved to approve Article #20, seconded by Selectman Branch. The vote was unanimous in favor.
#21 recreation: MOTION: Selectman Smallidge moved to approve Article #21, seconded by Selectman Coombs. The vote was unanimous in favor.
#22 rural wastewater support: MOTION: Selectman Smallidge moved to approve Article #22, seconded by Selectman Branch. The vote was unanimous in favor.
#23 sewer capital & debt: MOTION: Selectman Smallidge moved to approve Article #23 as amended to $189,917, seconded by Selectman Branch. The vote was unanimous in favor. Town Manager MacDonald said this will need to be amended during Town Meeting.
#24 sewer treatment: MOTION: Selectman Smallidge moved to approve Article #24, seconded by Selectman Branch. The vote was unanimous in favor.
#26 finance: MOTION: Selectman Smallidge moved to approve Article #26, seconded by Selectman Branch. The vote was unanimous in favor.
#27 personnel: MOTION: Selectman Smallidge moved to approve Article #27, seconded by Selectman Branch. The vote was unanimous in favor.
#29 transfer: MOTION: Selectman Smallidge moved to approve Article #29 as amended, seconded by Selectman Smith. The vote was unanimous in favor.
#68 spending: Town Manager MacDonald said this article remains in case the vote to change the fiscal year fails. MOTION: Selectman Smallidge moved to approve Article #68, seconded by Selectman Coombs. The vote was unanimous in favor.
#74 renaming credit reserve: MOTION: Selectman Smallidge moved to approve Article #74 as reworded, seconded by Selectman Branch. The vote was unanimous in favor.
#69 transfer: MOTION: Selectman Smallidge moved to approve Article #69 as renamed and renumbered, seconded by Selectman Smith. The vote was unanimous in favor.
#70 transfer: MOTION: Selectman Smallidge moved to approve Article #70, seconded by Selectman Branch. The vote was unanimous in favor.
#71 transfer: MOTION: Selectman Smith moved to approve Article #71 as renamed, seconded by Selectman Coombs. The vote was 4 to 1. Selectmen Branch, Coombs, Savage and Smith voted in favor of the motion. Selectman Smallidge voted against it. The motion carried.
#73 transfer: MOTION: Selectman Smallidge moved to approve Article #73 as amended, seconded by Selectman Smith. The vote was unanimous in favor.
#71: Public Works Director Smith said the transfer of funds under Article #71 should be reduced from $197,750 to $195,750. MOTION: Selectman Smith moved to reconsider Article #71, seconded by Selectman Coombs. The vote was unanimous in favor. MOTION: Selectman Smith moved to approve Article #71 as amended, seconded by Selectman Coombs. The vote was 4 to 1. Selectmen Branch, Coombs, Savage and Smith voted in favor of the motion. Selectman Smallidge voted against it. The motion carried.
B. Approve inclusion of additional Warrant Article; operation and maintenance easement for exchange of 25' X 25' parcel of Town owned property.
Public Works Director Smith said the Town never had an easement for the above property.
MOTION: Selectman Smallidge moved to approve the above item to be called Article XYZ, seconded by Selectman Coombs. The vote was unanimous in favor.
At Town Manager MacDonald's suggestion, Selectmen voted on article XYZ.
MOTION: Selectman Coombs moved to recommend passage of Article XYZ, seconded by Selectman Smith. The vote was unanimous in favor.
C. Approve non-budgetary Warrant Articles.
#59 private roads: MOTION: Selectman Smallidge moved to approve Article #59, seconded by Selectman Coombs. The vote was unanimous in favor.
#60 rename road: MOTION: Selectman Smallidge moved to approve Article #60, seconded by Selectman Branch. The vote was unanimous in favor.
#57 sewer ordinance: Selectman Smallidge moved to recommend adoption of Article #57, seconded by Selectman Branch. The vote was unanimous in favor.
#64 museum lease: Town Manager MacDonald said the wording should be changed to up to but not to exceed 15 years.
Carl Kelley said the Museum board would like to push for the sale of the building because chances of getting loans are greater if it owns the building. Chairman Savage said a letter has been received from another group expressing interest in the building. He thought the decision will come down to the voters. He preferred the lease option. If the voters approve the sale by voting for Article #63, they will have shown what they want. Selectman Smallidge did not like the idea of tying up the building for more than 15 years in case the Town needs it. Mr. Kelley said three foundations have said it would be better if the museum owns the building.
MOTION: Selectman Smallidge moved to approve the language change in Article #64, seconded by Selectman Branch. The vote was unanimous in favor.
D. Approve NEH Marina enterprise fund budget.
Town Manager MacDonald explained the projected budget with a conservative revenue estimate and described future financial needs for the marina. The reserves are included in the fund.
MOTION: Selectman Smith moved approval of the above, seconded by Selectman Coombs. The vote was unanimous in favor.
VII. Other Business
Responding to George Peckham, Town Manager MacDonald what explained he expects under a franchise agreement with Time Warner.
IX. Treasurer's Warrants
Approve Treasurer's Warrants #110 for $126,943 and #111 for $121,985.99
Signed as presented.
X Executive Session None requested
At 8:42 pm, Selectman Smith moved to adjourn the meeting, seconded by Selectman Coombs. The vote was unanimous in favor.
Respectfully submitted,
Jeffrey Smith
Secretary
The next regularly scheduled meeting is Tuesday, January 16, 2007 at 6:30 P.M. in the Town Office Meeting Room, Northeast Harbor.
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