HomeMy WebLinkAbout1995-05-08 95-211 RESOLVECOUNCIL ACTION
Item No. 95-311
Dates 5-08-95
Item/Subjects RESOLVE, Expressing the Approval of Bangor City Council to
the Settlement Agreement Between the Bangor Nater District
and the Town of Otis
Initiating Department: Executive
As the Council is aware,
settlement agreement has been reached between the Bangor water
District and the Town of Otis in regard to issues relating to the Fact of the Bangor
Hater District upon the tow. This agreement was reached, in part, as a result of
negotiations surrounding an ongoing law suit between the Bangor Water District and the
Tow of Otis relating to the construction of the new ozone plant in Otis. The Settlement
agreement has Been approved by both the Tow and the District, antl hes been incorporated
in a piece of legislation presented to the State Legislature for its ratification.
HnWhOrs of the Utilities Committee have regueated that the City of Bangor pass a formal
salve approving this agreement as a method of avoiding the need for a [efe[endau in
Bangor to approve it. Our Legal staff does not believe such a referendum in required in
this instance.
Under the agreement, the Bangor Nater District agrees to relinquish its water rights to
Beech Bill and Springy Ponds, to limit its tax exempt statue to "all pipes, fixtures,
hydrants, conduits, gatehouses, treatment facilities, pumping stations, reservoirs and
dams of the District" and 'all property of the District appropriated to public u
located within the corporate limits and confines of the District." The Taw of Otis agrees
not to apply Their building moratoria to the District's construction of an ozone plant in
the Tow of Otis.
The full Council has bean briefed on this settlement agreement at a recent workshop
session and it has been orse recently discussed by the Municipal Operations Committee. A
representative of the District will be present at Money's meeting should there be any
questions Municipal Operaticno commithis ttee to
The your
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Assigned to Councilor Blanchette May 8, 1995
CITY OF BANGOR
(TIRE.) BgQlsre,.. SxP ng the Approval of Bangor City
Council to the settlement Agreement Between
the BfBOI Water District and the
o
Town of Otis
By dw City Couneel ofBw City ofBanyor:
B OLVBD,
WHEREAS, Since 1959, the Bangor Water District has drawn its
WHEREAS, The Bangor Water District's land holdings, property and
water rights make the district the largest property
owner in the Town of Otis, and operate as a constraint
on future taxable development of land in Otis adjacent
to Spectacle Pond and Beech Hill Pond; and
WHEREAS, Concern over these facts has led to litigation between
the Town of Otis and the Bangor Water District over the
district's continuing tax exempt status and expansion
plans; and
WHEREAS, The Bangor Water District and the Town of Otis have
negotiated a resolution of their dispute as recited i
a
"Settlement Agreement" dated April 25, 1995, a copy of
which is attached hereto; and
water supply from Plood's Pond in the Town of Otis,
Maine, as authorized by the district's Charter; and
WHEREAS,
under its Charter, the Bangor Water District has the
right to draw water from Spectacle Pond and Beech Hill
Pond in the Town of Otis, Maine, in addition to Flood's
Pond, which rights have not been utilized by the
district since its creation in 1957; and
WHEREAS,
In recent years, in esponse to the federal Safe Water
Drinking Act, the Bangor Water District has expanded its
land holdings in the Town of Otis to more than 900
for the purpose of protecting the Flood's Pond
watershed, and has made plans and contracted for
construction of a $7+ million ozone filtration plant,
also located in the Town of Otis; and
WHEREAS,
Under its Charter, the Bangor Water District isexempt
from payment of local real estate taxes o its land,
pipes, pumps, facilities, and other property, wherever
located; and
WHEREAS, The Bangor Water District's land holdings, property and
water rights make the district the largest property
owner in the Town of Otis, and operate as a constraint
on future taxable development of land in Otis adjacent
to Spectacle Pond and Beech Hill Pond; and
WHEREAS, Concern over these facts has led to litigation between
the Town of Otis and the Bangor Water District over the
district's continuing tax exempt status and expansion
plans; and
WHEREAS, The Bangor Water District and the Town of Otis have
negotiated a resolution of their dispute as recited i
a
"Settlement Agreement" dated April 25, 1995, a copy of
which is attached hereto; and
95-211
WHEREAS, Provisions of the "Settlement Agreement" relating to the
The City Council of the City of Bangor further endorses
and supports passage in the current session of the 119th
Legislature, of the amended version of LD 415 attached
hereto.
The City Council of the City of Bangor further
cognizes and endorsee the principle implicit in LD 415
that tax-exempt organizations and institutions should be
required to contribute their fair share to the cost of
basic municipal services provided by the municipalities
cipalities
in which such organizations and institutions are
located.
The City council Of the City of Bangor further urges the
Legislature during its current session, to adopt a
workable service fee statute or to amend the existing
provisions of 36 MRSA S 652 in a manner that will permit
Maine municipalities to recover from currently
tax-exempt organizations and institutions the cost of
basic municipal services provided to those organizations
and institutions.
and
be it further RESOLVED,
THAT copies of this Resolve be transmitted to the Joint
Standing committee on Utilities of the Maine Legislature
to inform the Legislature of the City of Bangor's
position on passage of LD 415, as amended.
district's tax-exempt status and relinquishing of water
rights to Spectacle Pond and Beech Hill Pond will
require Legislative amendment of the district's Charter;
and
WHEREAS,
Ana ended version of LD 415 has been proposed in the
current session of the 119th Legislature for passage as
emergency legislation to amend the district's Charter as
proposed in the "Settlement Agreement", a copy of said
amended version of LD 415 being attached hereto; and
WHEREAB,
The Bangor City Council has been informed of the details
of the Settlement Agreement and the amended version of
LD 415 and finds each to be in the best interests of the
residents of the City of Bangor;
NOW, THEREFORE, by the City Council of the City of Bangor, be it
RESOLVED,
THAT
The City Council of the City of Bangor, on behalf of the
residents of the City of Bangor, hereby expresses its
approval of the April 25, 1995 Settlement Agreement
between the Bangor Water District and the Town of Otis.
The City Council of the City of Bangor further endorses
and supports passage in the current session of the 119th
Legislature, of the amended version of LD 415 attached
hereto.
The City Council of the City of Bangor further
cognizes and endorsee the principle implicit in LD 415
that tax-exempt organizations and institutions should be
required to contribute their fair share to the cost of
basic municipal services provided by the municipalities
cipalities
in which such organizations and institutions are
located.
The City council Of the City of Bangor further urges the
Legislature during its current session, to adopt a
workable service fee statute or to amend the existing
provisions of 36 MRSA S 652 in a manner that will permit
Maine municipalities to recover from currently
tax-exempt organizations and institutions the cost of
basic municipal services provided to those organizations
and institutions.
and
be it further RESOLVED,
THAT copies of this Resolve be transmitted to the Joint
Standing committee on Utilities of the Maine Legislature
to inform the Legislature of the City of Bangor's
position on passage of LD 415, as amended.
IN Clxx COUNCIL
Nay 8, 1995
2
ITY Cf
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95-211
E E 5 0 L V E
Expressing the Approval of Bangor City
Council to t eett emen ts rent
Between the Bangor Water District and
the Tow of Otis.
SSAFA
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II
95-ZL1
68TfL@1@TT ADRSBMBNT
This Agreement dated April >r 1995, by and between the
- Inhabitants of the Town of Otis, a municipal corporation located -
in Otis, Hancock County, Maine, acting by and through its duly
authorized Board of Selectmen '(hereinafter sometimes referred to
a9 the "Town") and Bangor Water District, a quasi -municipal
corporation in Bangor, Penobscot.County, Maine, acting by and.
through its duly. authorized Chairman of the Board of Trustees and
General Manager, (hereinafter sometimes referred to as the
"District").
Whereas, the parties have been involved in a dispute arising
out of and involving factors addressed by this Agreement;
Whereas, the Charter of the Bangor Water District currently
provides for the right of the District to withdraw water from
Beech Hill and Springy Ponds, on the assumption that those ponds
provide waters that could supplement water drawn from Floods
Pond;
Whereas, since 1957, intervening development on Beech Hill
and Springy Ponds has negated the cost effectiveness and likeli-
hood of using these ponds as sources of public drinking water;
Whereas, as a publichealth measure, federal and state laws
mandate protection of the water quality of Floods Pond as the
public drinking water supply for the District. Protection and
control of the watershed of Floods Pond is the most effective
means of protecting the water quality of Floods Pond. Control of
the watershed of Floods Pond is most effectively achieved by the
District's acquisition of lands within the watershed and the
parties specifically recognize the District's continuing efforts
to do so;
Whereas, as a result of a property tax exemption under the
District's current charter, the effect of such land acquisition
is to remove otherwise taxable property from taxation by the Town
of Otis;
Whereas, in recognition of certain changes to the charter of
the Bangor Water District, the Town of Otis agreestoclarify
that the District's facilities are not subject to an existing
_ building moratorium and to take the necessary action to clarify
other matters as requested by the District;.
Whereas, the parties agree that, in the future, the parties
shall confer before either takes any action(s) which may materi-
ally affect the other;
Whereas, the Town of Otis and the Bangor Water District
desire to settle and resolve all pending disputes and claims, and
95-211
intend that such settlement is a full, fair and complete resolu-
tion of all matters addressed by this Agreement;
Now therefore, the parties agree as follows:
Obligations f B&nHor Water District
1.. Upon approval of the settlement terms by the parties hereto,.
the Bangor Nater District (herein also referred to as the -
"District") agrees to work cooperatively and in good faith
with the TownofOtis to pursue the following legislative
changes to the District's charter. These changes shall only
be applied prospectively.
a.. Hater Rights- Upon final approval of legislation to so
end the charter of the Bangor Water District, the
District agrees to relinquish water rights to Beech
Hill and Springy Ponds.
b. Tax Exemption. I£ all other provisions of this Agree-
ment are performed, the District agrees to amend its
current tax exemption to provide tax exempt status only
for "all pipes, fixtures, hydrants, conduits, gatehous-
as, treatment facilities, pumping stations, reservoirs
and dame of the District" and "all property of the
District appropriated to public use, located within the
corporate limits and confines of the District."
The valuation and/or assessment of the District's
property, when taxable, is set forth in a side letter
from Herbert Dickey to the Board of Selectmen of Otis
dated January 27, 1995, a copy of which is attached as
Exhibit A.
2. The Bangor Water District agrees t0 provide Prior written
notice and a meaningful opportunity to comment totheTown
of Otis prior to taking actions which may directly affect
the Town of Otis. The notice shall state when the "intended
action(s) will be approved and/or taken.
If no written request from the Otis Board of Selectmen to
comment on the intended action(s) is received by the Dis-
trict within thirty (30) days of the date of written notice
by the District, the Otis Soard of Selectmen shall be deemed
to have no comment on the intended action(s).
When an opportunity to comment on any such actions) by the
District is requested in writing by the Otis Hoard of Se-
lectmen, the District will include the request on the agenda
of a meeting of its Board Of Trustees. Such request shall
be placed on the agenda of the next regularly scheduled
meeting of the Trustees which occurs at least thirty (30)
days after, but within sixty (60) days of, receipt of the
request.
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The District will invite the Selectmen to attend that por-
tion of the Trustees' meeting at which the specific agenda
.item will be reviewed, by Sending notice to the Selectmen of
the invitation at least fourteen (14) days prior to the
meeting.
3. The Bangor water District agrees to refrain from pursuing
any additional legislative change(s) which would materially
affect the Town's taxation of the District's property in the
Town of Otis, without first consulting the Town of Otis and
providing the Town with a meaningful opportunity to comment
on such proposed legislation.
Accordingly, the District shall give written notice of those
additional legislative change(s) to the Town Of Otis prior
to submitting such change(sl to the Maine Legislature. The "
notice shall state when the intended change(s) will be
submitted.
If no written request from the Otis Board of Selectmen to
comment on the intended change(S) is received by the Dis-
trict within thirty (30) days of the date of written notice
by the District, the Otis Board of Selectmen shall be deemed
to have no comment on the intended change(s).
When an opportunity to comment on any such action(s) by the
District is requested in writing by the Otis Board of Se-
lectmen, the. District will include the request on the agenda
of a meeting of its Board of Trustees. Such request shall
be placed on the agenda of the next regularly scheduled
meeting of the Trustees which occurs at least thirty (30)
days after, but within sixty (60) days of, receipt of the
request.
The. District will invite the Selectmen to attend thatpor-
tion of the Trustees' meeting at which the specific agenda
item will be reviewed, by sending notice to the Selectmen of
the invitation at least fourteen (14)days prior to the
meeting.
4. If the Otis Board of Selectmen has a concern regarding the
Bangor water District, it mag petition the Bangor Water
District Board of Trustees to address the concern by a
letter stating the concern. The petition shall be placed on
the agenda of the next regularly scheduled meeting of the
Trustees which occurs at least thirty (30) days after, but
within sixty (60) days of, receipt of the petition.
The District will invite the Selectmen to attend that por-
tion of the Trustees' meeting at which the petition will be
reviewed, by sending notice to the Selectmen of the invita-
tion at least fourteen (14) days prior to the meeting,
- 93-21.1
5. The Bangor Water District agrees to provide technical sup-
port to the Town of Otis with regard to watershed protection
and water quality management for Beech Hill and Springy
Ponds.
6. Upon execution of this agreement and the implementation of
its terms, including the terms specified in paragraphs 1, 2,
3, and 6 below, the District hereby agrees to release the
Town of Otis from any and all claims relating to, or arising
from, the issues presented in this Settlement Agreement and
agrees that the terms of this agreement constitute a full,
fair, and complete disposition of any and all claims arising
from the subj act matter hereof.
Oblicatlons of Tow of Otis -
1. The Town of Otis agrees to work cooperativelyand in good
faith with the District to pursue the above referenced
legislative changes.
2. The Town of Otis agrees that it shall call a special town
meeting for the earliest practical date to amend the build-
ing moratoria enacted by the Town of Otis on May 14, 1994,
and June 26, 1994, to clarify that they do not apply to the
District's construction of an ozone plant in the Town of
Otis. In the event the residents of the Tow of Otis fail
to amend said building moratoria, as contemplated herein,
then the Town of Otis agrees to an entry of a permanent
injunction in the pending litigation.
3. The Tow of Otis agrees that Article So (hazardous waste
provision),does not apply to the District's operation of its -
facilities located in the Town of Otis.
4. The Town of Otis agrees to provide prior written notice and
a meaningful opportunity to comment to the District before
taking any action(s), including adopting or amending any
local ordinance, rules or regulations,which may materially
affect the District or its use or operation of its facili-
ties in the Tow of Otis. The notice shall state when the
intended action(s) will be approved and/dr taken.
If no written request from the Bangor Water -District Board
of Trustees to comment on the intended action(s) is received
by the Town within thirty (30) days of the date of written
- notice by the Town, the Bangor Water District Board of
Trustees shallbe deemed to have no comment on the intended
action(s).
When an opportunity t0 consent on any such actions) by the
Town is requested in writing by the Board of Trustees, the
Town will include the request on the agenda of a meeting of
its Board of Selectmen. Such request shall be placed on the
agenda of the next regularly scheduled meeting of the Se.
lectmen which occurs at least thirty (30) days after, but
within sixty 160). days of, receipt of the request.
The Selectmen will invite the Board of Trustees to attend
that portion of the meeting of the Selectmen at which the
specific agendaitem will be reviewed, by sending notice to
the Board of Trustees of the invitation at least fourteen
-(14) days prior to the meeting.
5. The Town of Otis agrees to refrain from pursuing any addi-
tional legislative changes which would materially affect the
District's use or operation of its facilities or the taxa-
tion of the District's property in the Town of Otis, without
first consulting the District and providing the. District
with meaningful opportunity to comment on such proposed
legislative change(s).
Accordingly, the Town shall give written notice of such
additional legislative change(s).to the Bangor water Dis-
trict prior to submitting such change(s) to the Maine Legis-
lature. The notice shall state when the intended changes)
will be submitted.
If no written request from the Bangor Water Board of Trust-
ees to comnent on the intended changes) is received by the
Town within thirty (30) days of the date of written notice
by the Town, the Bangor Water District Board of Trustees
-
shall be deemed to have no comment on the intended
change(s).
When an opportunity to comment on any such change(s) to be
proposed by the Town is requested in writing by the Bangor
Water District, the Town will include the request on the
agenda of a meeting of its Board of Selectmen. Such request
shall be placed on the agenda of the next regularly sched-
uled meeting of the Selectmen which occurs at least thirty
(30) days after, but within sixty (60) days of, receipt of
the request.
The Town will invite the District to attend that portion of
the meeting of the Board of Selectmen at which the specific
agenda item will be reviewed, by sending notice to the -
District of the invitation at least fourteen (14) days prior
to the meeting.
6. if the Bangor Water District Board of Trustees has a concern
regarding the Town of Otis, it may petition the Town of Otis
Board of Selectmen to address the concern. The petition
shall be placed on the agenda of the nextregularly sched-
uled meeting of the Selectmen which occurs at least thirty
(30) days after, but within sixty (60) days of, receipt of
the petition. -
95-211
The Town will invite the Trustees to attend that portion of
the meeting of the Selectmen at which the petition will be
viewed. by Sending notice to the Selectmen of the invita-
tion.at least fourteen (Ya) days prior to the meeting.'
e. The Town of Otis agrees to assist in determining that a road
Or right Of vmy foiarerly known ee 'Fleece Frond Lending Road-
is
net atown way. If it is determined to be a town way.
the Town agrees to undertake the necessary actions to dis-
continue the town way.
S. The Town Ot Otis hereby agrees to release the District tree
any end all claims relating to, or arising from, the issues
[
eted in thin ttlement Agreement and that the corms of
this Agreement constitute a full, fair, .and complete dispo-
sition of any and all claims arising from the subject matter
hereof.
The parties hereunto duly authorized hereby represent that
they have full authority to execute this document and have
affixed their signatures hereto. The Bangor Water District has
secured authorization by Its Board of Txneteee. The Town of Otis.
has secured authorization by its Town Meeting.
WITNESSES
30
BANGOR WATER DISTRICTI
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TOWN OF OTIS
95-211
(Emergency)
FIRST REGULAR SESSION
ONE HUNDRED AND SEVENTEENTH LEGISLATURE
Legislative Document - No.
STATE OF MAINE
IN THE YEAR OF OUR LORD
NINETEEN HUNDRED AND NINETY-FIVE
AN ACT to Amend the Charter of the Bangor Water District
Emergency Preamble. Whereas, Acts of the Legislature do
not become effective until 90 days after adjournment unless enacted
as emergencies; and
Whereas, Certain provisions Of Bangor Water D'istrict's
charter relating to source of water supply are based on historical
assumptions which must be amended from time to time;
Whereas, a provision of Bangor Water District's charter
relating to taxation of the District's property outside the
District's territorial limits should be revised to provide
consistency with the property taxation of similarly situated water
districts in the State of Maine;
Whereas, these amendments are required in order to
implement a settlement of claims between the Bangor water District
and the Town of Otis;
95-211
Whereas, in the judgement of the Legislature, these facts
create an emergency within the meaning of the Constitution of Maine
and require the following legislation as immediately necessary for
the preservation of public peace, health and safety;
Now, therefore, be it enacted by the People of the State
of Maine as follows:
Sec. 1. P&SL 1959, C. 39, 3 2, is amended to read:
Sec. 2. Source of supply. The said district, for the
purposes of its incorporation, is hereby authorized and empowered
to purchase, take, hold, divert,use and distribute water from
Floods pond, Burnt pond, Little Burnt pond, -- - paa4Rees'
Hill read,, Snowshoe pond and Pitts pond in the Counties of
Penobscot and Hancock, as the case may be, or any of them. Until
such time as the water supply may be available from one or more of
the ponds heretofore named, the District is authorized to take,
hold, divert, use and distribute water from the Penobscot River.
Sec. 2. P&SL 1959, C. 39, 3 9, is amended to read:
Sec. 9. Property tax exempt. The property of said
district -""" seabed ,within its territorial limits shall
be exempt from taxation. Outside its territorial limits the
following rt f the District
fixtures hydrants, conduits, h facilities,
Puanying stations. district.
Sec. 3. P&SL 1969, c.99, Section 3, is hereby repealed.
Emergency clause. In view of the emergencycited in the preamble,
this Act shall, take effect when approved.
STAT&,BNT OF FACT
The Bangor Water District currently has charter rights to
certain surface waters, including Beech Hill and Spectacle (now,
known as Springy) Ponds. Historically, the District was given
rights to these waters on the assumption that, although Floods Pond
would be and remains the District's principal source of supply,
that source could be supplemented by water from these adjacent
ponds. However, since 1959, intervening development on Beech Hill
and Springy Ponds has negated the cost effectiveness and likelihood
of using these ponds as sources of public drinking water. Instead,
groundwaters not influenced by a surface water would be explored
and developed as sources of water supply.
95-211
This bill also implements a settlement between the Bangor
Water District and the Town of Otis which provides a full, fair,
and complete resolution of all claims and disputes between those
parties.
LWIPOWARNMOMMMMAM