HomeMy WebLinkAbout2017-11-27 18-029 ORDERTitle, Order
CITY COUNCIL ACTION
Council Meeting Date: 11/27/2017
Item No: 18-029
Responsible Dept: Legal
Requested Action: Order
11/27/2017 18-029
Map/Lot: N/A
Authorizing the City of Bangor to Exercise the Put Option Set Forth in the Sixth Amended and Restated
Agreement of Limited Partnership of Penobscot energy Recovery Company, Limited Partnership
Summary
This Order authorizes the City Manager, on behalf of the City of Bangor, to execute and deliver such
documents and to take such further actions as they may deem necessary or appropriate in order to
exercise the Put Option and to assign the City of Bangor's limited partnership interests to PERC.
The City of Bangor is an Equity Charter Municipality and a party to an agreement with Penobscot Energy
Recovery Company (PERC) for disposal of its solid waste. In 2016, the City Council of the City of Bangor
entered into an agreement with the Municipal Review Committee (MRC) to deliver solid waste to to the
new Fiberight Facility in Hampden, Maine beginning April of 2018. Because of its agreement with MRC
and as a result of a court settlement with Penobscot Energy Recovery Company(PERC), the City is to
exercise a "Put Option" by December 15, 2017.
The Sixth Amended and Restated Agreement of Limited Partnership of Penobscot Energy Recovery
Company, Limited Partnership (the "PERC Partnership Agreement"), provides that as an Equity Charter
Municipality the City of Bangor has the right to exercise the Put Option described therein whereby the City
of Bangor requires that the Penobscot Energy Recovery Company, Limited Partnership ("PERC")
repurchase the City of Bangor's limited partnership interest in PERC in exchange for a cash payment equal
to the City of Bangor's proportionate share of One Million Five Hundred Thousand Dollars ($1,500,000),
which represents the agreed upon aggregate value of all limited partnership interests held by the City of
Bangor and other similarly situated municipal members of the Municipal Review Committee. The City's
proportionate share is approximately 4.33% or $254,149. Staff recommends approval.
Committee Action
Committee: Council Workshop Meeting Date: 11/27/2017
Action: Recommend for passage For: Against:
Staff Comments & Approvals
This item will be discussed in Pre -Council on November 27, 2017.
City Manager
Introduced for: Consent
City Solicitor
Finance Director
CITY OF BANGOR ORDER
Date: 11/27/2017
Item No: 18-029
Assigned to Councilor: Perry
11/27/2017 18-029
Authorizing the City of Bangor to Exercise the Put Option Set Forth in the Sixth Amended and Restated
Agreement of Limited Partnership of Penobscot energy Recovery Company, Limited Partnership
WHEREAS, The City of Bangor is an Equity Charter Municipality and a party to an agreement with Penobscot
Energy Recovery Company (PERC) for disposal of its solid waste; and
WHEREAS, in 2016 the City Council of the City of Bangor decided not to renew its agreement PERC and to
deliver its solid waste to Fiberight and entered in an agreement with the Municipal Review Committee (MRC);
and
WHEREAS, Pursuant to Section 9.3 the Sixth Amended and Restated Agreement of Limited Partnership of
Penobscot Energy Recovery Company, Limited Partnership (the "PERC Partnership Agreement"), as an Equity
Charter Municipality the City of Bangor has the right to exercise the Put Option described therein whereby the
City of Bangor requires that the Penobscot Energy Recovery Company, Limited Partnership ("PERC")
repurchase the City of Bangor's limited partnership interest in PERC in exchange for a cash payment equal to
the City of Bangor's proportionate share of One Million Five Hundred Thousand Dollars ($1,500,000), which
represents the agreed upon aggregate value of all limited partnership interests held by the City of Bangor and
other similarly situated municipal members of the Municipal Review Committee; and
WHEREAS, under thee terms of its agreement with MRC the City needs to exercise the Put Option by
December 15, 2017.
Now Therefore, Be it Ordered by the City Council of the City of Bangor that,
Catherine M. Conlow, City Manager, is hereby authorized and directed, on behalf of the City of Bangor, to
execute and deliver such documents and to take such further actions as they may deem necessary or
appropriate in order to exercise the above-described Put Option and to assign the City of Bangor's limited
partnership interests to PERC as contemplated thereby.
IN CITY COUNCIL
NOVEMBER 27, 2017
CO 18-029
PASSED
CITY CLERK