Loading...
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 of Trusapproval tees of of thisthe Resolve� District and the rnt. Th approve o Department Head Manager's Commmenta: City Manager Associated Informations Resolve, settlement agreement] LO 4/5-n5 a w Finance Director Nye city sel'c itmr I t ducadfor Seaga rer Reading Referral to Page_ 0£ 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 RR 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 MHUMIMPANAAAA 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. 95-211 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 / M e ogalsk '/✓/G�ye/�%neral agez Mirmeal Sml� oard Of Trustees 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