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HomeMy WebLinkAbout1990-01-29 90-61 RESOLVEDate 1-29!90 11 1 1 1 Item No. 90-61 RESOLVE, Stating Position of the City of Bangor Regarding LO 2189, An Act Amending the Charter of Item/subject: the Bangor Water District Responsible Department: City Manager' Commentary: Representative Duffy of Bangor has introduced legislation which would amend the Charter of the Bangor Water District. The Act has two provisions. First, it requires the City Council of the City of Bangor to approve contracts to sell water outside the District. Second, it establishes a referenda procedure] on District decisions. Under State law, municipalities which are'within -a water district must comment in writing to the Legislature on proposals to amend the District's Charter. This must be done before the Legislature takes action. This bill is scheduled for a hearing early in February. Both the Water District and Rep. Duffy have been notified of this meeting.. Attached are several resolutions which take a variety of positions on the is aG. Depnmew Hxd Manager's Comments: Asociated Information: Resolves, LD 2189 Budget Approval: N, K D;m Legal Approval: C Ciry SWi u InPagFor e ❑ First Pestling Page — of ❑ Rommel 90-61 Assigned to Councilor Sosnaud, January 29, 1990 CITY OF BANGOR (TITLUMol rs......Supp ting the Provisions _ ns of LD 2189, An Act to Amend the Charter of the Bangor Water District BY a. "IF cawed Of as Day AUSaaw.: xssoLvan, WHEREAS; The City of Bangor was instrumental in the creation of the Bangor Water District as anentity charged with providing safe and sufficient drinking water for the citizens of Bangor; and WHEREAS; It is essential that the best interests of the citizens of Bangor guide the operations and activities of the District; and WHEREAS; The formal involvement of the City Council of the City of Bangor in the process of approving contracts for the sale of water outside of the District will further safeguard the interests of the citizens of Bangor; and WHEREAS; It is appropriate for the citizens of Bangor to exercise the referenda process on certain decisions of the District which direclty affect them; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT the City Council supports LD 2189, An Act to Amend the Charter of the Bangor Water District, and calls upon the Utilities Committee of the Legislature and the Legislature as a whole to approve this measure. .. Amended oopy 90-61 CITY OF BANGOR (TITLE.) �RESD1iTB,.. Qpp ai.Hg..tne...PFAV$giQBS.............. W Amend the Charter of the Bangor Water District Eyµ City Coaa.-0 ofdw Cih ofBanynr RESOLVED, WHEREAS, The City Of Bangor was instrumental in the creation of the Bangor water District as an entity charged with providing safe and sufficient drinking water for the citizens of Bangor, and WHEREAS, The City of Bangor continues to appoint the members of the Water District's Board of Trustees; and WHEREAS, The Water District is currently regulated bythe State Public Utilities Commission; and WHEREAS, Additional controls beyond those already. established in the District's Charter, the PUC's rulings and procedures, and the City Council's - appointing autirority, are unnecessary; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT the City Councildoes not suppomt LD 2189, An Act to Amend the Charter Of the Bangor Water District, and calls upon the Utilitles Commission of the Legislature as a whole W defeat this measure. In City Couocil January 29,1990 Passed as attended vote 5 res 4 No 90-61 R E S O L V E N City Council January 29,1990 Supporti ] M Pro isiw of M 2189 vote to-Ivre 1 by Substitution resoles= = N d the Cberter of the OpEvsing sProv siona en of w g� or Water O'%erict 2189 an act to amend the Ghetto of the Bangor Weyer Dist. w 5 yes 4 No wring yes �,4gl ,Ssw ,Stone Sullivan wtin9 No Baldaxi,Blancbette,Sa#, sosriaud wte for [ Saw as artendsi 5 yes 4 no wtin9 yes CobenrBngland,SawYer, Stone,Sullivan Voting No Baldacci,Blarchei[e,Sa#, Sosr�aud I J- 114th MAINE LEGISLATURE SECOND REGULAR SESSION -1990 Legislative Document - No. 2189 H.P. 1580 House of Representatives, January 12, 1990 Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 26. Reference to the Committee on Utilities suggested and ordered printed. 5W 6?� EDWIN H. PERT, Clerk Presented by Representative DUFFY of Bangor. STATE OF MAINE IN THE YEAR OF OUR LORD NINETEEN HUNDRED AND NINETY An Act to Amend the Charter of the Bangor Water District. 15 2 4 6 10 12 14 16 18 20 22 24 26 20 30 32 34 36 36 40 42 44 46 48 50 52 Be it enacted by the People of the State of Maine as follows: Sec. 1. P&SL 1957, c. 39, ¢3 is emended by adding at the end a new sentence to ream A 3diDtrinc decision to r into. renegotiate. mend or renew a c Drnyj6.11 ^ii�e4A� 1U. district ad Peapribad in section I is subject Council. Sec.2. P&SL 1957,c.39,§15 is enacted to read: Sv". ._Ratere_nds a QjySNcL lcisknbxqtirinn n JbInAqt 51 2f thein the 1p62y'd`y f 1 _ wlg9d Lt d to ne special t + r^e r to U.11 192 11L2 h,,,Se, agagEsting to the Ing relation to municipal elections. excnpt toet jbe bee eaic v is pot regajred [o pygpn[e £or postiva war the �ity elerk to Pont. a new list 2f m2taxa. Egg he S aimtKatign shall he in session the : wider dayqgNt weea'na theIgumi,ed 4ollot t�arkBppl] i Better of the decicio hcshelf questnn =AiDat Led Qgda --XaE-- or "No' their opinion of can fact ion. *ne a.e3 s ten knk=,—ftar•w1fiat'ly upon acceptance By a msigrity of tins legal voters 14'. .1 11. that the total number of motes Cost for and aminst ell p££E¢t nr a tM6�gL,gadla or ev cede 204 of the total not, �or Governor cast in the district at the las oubern,carial election. TJSSes. Sa_mY4t h red M the mu9iy}pal be filed by the city Clark wi th the Secretary of state, o£f ieeia_s£_Sb. STATEMEW OF FACT This bill amends the charter of the Bangor Nater District to require Bangor City Council approval of any district decisions to enter lots, renegotiate, mend or renew contracts to provide o ¢ sell w outside the district. This bill adds referendum clause to the charter, whereby if 54 of the district's voters sign a petition, the decision may be put to referendum. Page 1-LB3250(l) / BAMGOR CITY COUNCIL Special Meeting January 29, 1990 Tape 51. Side A Re: Council Resolve 90-61 - Supporting the Provisions of M 2189, an Act to Mend the Charter of the Bangor Water District Councilor Sosnaud: I see that the author of this bill, Representative Duffy, is here with us and if the Chair deems it i order I would certainly like to hear from Representative Duffy about the bill and his stated claim for the need of it. chairman sawyer: Councilor Sosnaud, if you'd be willing, let me see ve got two actual, okay, would you rather move and have seconded a Resolve and then debate, or since you have the floor would you rather hear discussion and then see what mood the Council is in? Councilor Sosnaud: Either way I'm happy to. I'll just follow our traditional format. I'll move the Resolve. Councilor England: Point of order. Chairman Sawyer: Yes. Councilor Enaland: What, we have two Resolves here, one 90-61 and one 90-62. Edward Barrett: They're both really the same number and you just have to pick one. Councilor Sullivan: No, 62 is the homestead --- Chairman Sawveri Homestead. Edward Barrett: There are two, there are two resolves on the Water District -- Councilor Enoland: well, you got two 90-61. What are you going to call it? Chairman Sawver: To cut the baby in half on this how about if the motion was to move Council Resolve 90-61, then in the course of debate I guess legally by, we would amend to pick which of the two resolves before us we want. So did I hear you. Is that right? Councilor Coheni Point of information Mr. Barrett. _2_ Robert Miller: I think you ought to pick one or the other, and that should be, your motion should be in support of either one or the ether. (several people talking) Chairman Sawyer: Councilor Cohen. Councilor Cohen: we're debating. Mr. Mayor, just a point of information. We need to know what we're debating, either in favor of the resolve or against the resolve, so I would suggest you know, just for the record, maybe Jeff would just pick one or decide what he wants to put on the floor for debate. Chairman Sawyer: Councilor Sosnaud, you have the floor. Councilor Sosnaud: Well I have to confess I've just seen the one n the table in front of me. Could some, I can read it myself quickly, can somebody point out the chief distinctions between the new one and--- Councilor England: Yeah, that one's opposed the District's in favor. Councilor Sosnaud: Okay, I.11 move the original one then please. Councilor Sullivan: I have a question. Chairman Sawyer: Councilor Sullivan. Councilor Sullivan: Why do we have them both the same number? Edward Barrett: Cause the resolve will be 90-61. Cause there has to be an action taken on every resolve, if we didn't act on, otherwise you have to act on both. Pass one and --- Councilor Blanchette: Yeah, I'll second it. Chairman Sawyer: Councilor Blanchette seconds it. So we have moved and seconded, now a debate. Would anyone from the audience like to speak? Representative Duffy. Representative Duffv: Thank you Chairman Sawyer, members of the City Council. Councilor Blanchette: Tom, would you check and see that the microphone is on please. Representative Duffv: it's there. I'm just not speaking into it right. Councilor Blanchette: Thank you. _3_ Representative Duffvz I believe the motion before the Council right now is in favor of the bill to amend the Bangor Charter. I came here today naturally because I believe in the bill that's as presented and will be presented February 7th to the Public Utilities Committee. Interestingly enough, by the way I have 9 copies of the Bangor Water District original Charter if you'd like to have them in front of you. Certainly. Representative Duffy: And I want to touch upon the Charter as it is now. Certainly appropriate because we're amending it. Apparently the Bangor City Charter was accepted in 5, the May 6, 1957 almost 32 years and a half ago I guess. And that would make me a young man and so Chairman Sawyer a young man if we go back there and just talk about 32 years ago. But 32 years ago apparently we had a problem in the City of Bangor. Edward Barrett: There were copies of that also included in Bob Miller's Memo that went out. Councilor Sullivan: We've got copies here. Edward Barrett: Dated January 26th. Representative Duffy: May, so you're well prepared then. Apparently 32 years ago we had a problem with the public water supply in Bangor. It came out of Penobscot River and I guess we all knoand remember what that was like. Interestingly enough w shortly before that the City of Brewer of fatted to go in with the Bangor, and share their water with them and create a Bangor -Brewer Water District. Apparently we turned that request down and decided that we wanted to create our own water source, and to have our own Water District. One of the vital reasons that we went to a water district was to alleviate the Town of, City of Bangor from a bond indebtedness that it would have taken to create a new water source. So weceated the Bangor Water District. And why did we create it? In the first, the very first thing we did in Section 1 was, the purposes of the District shall be to supply the inhabitants of the District with pure water for fire protection purposes and also for domestic, sanitary, commercial, industrial and other lawful pux - take over control manage and operate the water system now owned by the said City of Bangor. Intent and purpose you go on a little bit, is to provide a water system for proper purposes and for the health comfort and convenience of the inhabitants of said District. They go on to define the District as to be in the boundaries of the City of Bangor. So when we talk about what water is delivered, it's delivered either within the District or without of the District _4_ and that means in or out of Bangor. I'll go on a little further that they allowed a take over, they allowed that there may be the situation to arise that we may want to sell water, give water, provide water outside the City of Bangor. They allowed that but they said consistent with the needs of the iMabitants of the District hereby created. Bo therefore we went, and a little further on In the Charter, we allowed that we should appoint the members of the Bangor Water District. And x contend that that appointment was the day-to-day operations of the Bangor Water District - to serve the City of Bangor and its inhabitants of which I must say they've done an extremely good job. I think that we're lucky to have a company that has done as well as it has to serve water and the quality of the water we have In Bangor. But since 1957 and when it was created the citizens of Bangor, by through their rate paying and by taxes, have bought paid for expanded created the resource of Flood's Pond and all of the piping to it and to Bangor and throughout the District, throughout the City of Bangor. It wasn't cheap. It wasn't inexpensive. But we bought and paid for it. Not anybody outside the District, but everybody inside Bangor. I guess everybody read the Bangor Daily News today, and part of that what they had to say I agree with. Question is if we really made a case for emending the Bangor Water District. Well interestingly enough I believe, i believe that we haven't been able to get the case out. I don't think that we've been able to get the tremendous public scrutiny that's, that is needed to make people understand that there is indeed a case out there for the scrutiny that I've, that I've proposed in this legislative act. I think we only have to go back 30 years ago to start looking at what happened, and what's happening to the Bangor Water District. Ten years ago, and my numbers are plus or minus, I don't have exact numbers, but I've been, this is what I've been told that we drew 3 1/2 million gallons a day out of Flood's Pond. I think as we've been told it's up around a peak period of 6.6, 6.7 million gallons per day now. Well I asked the question of how many gallons it's increased for the City of Bangor? What's Bangor taken over the last 10 years? They said Bangor's increased approximately a million gallons a day since 19 -- say 78 or 79. That means that 2 million gallons per day has gone outside the District as a increase. Question becomes is that, is that in the best interest of the city of people of Bangor? It's not an unlimited water resource. There's only so many gallons per day at the best in the best conditions that you can take out of it. Now we'd been inprudent with a water resource for the residents of the City of Bangor. -5 - Well the next question is, is, what have they tried to do in those 10 years to improve the situation? well, first of all, they went and contracted with the chemical group in Orrington. and they contracted to them for a million gallons a year forever. That's what they contracted to them for, a million gallons a year forever. well, they at least built a dam at Flood's Pond to raise the level of the water level so that if indeed they had to give a million gallons a year they'd have a million gallons extra. Well the next thing they did was in the contract, they said you guys got to pay us ahead of time for this piping. But we'll Pay you back. We'll pay you back through credits of water. So we used nor water to credit back - the chemical company forgetting the pipe to get to the chemical plant. But who, so who paid the payback? City residents of Bangor. Is that a subsidy? If you pay 858 of the bill that's a subsidy. So we have a contract with Hampden, the contract with Hampden was in existence 10 years ago, called for us to be either a back-up water system or an alternate water system. Since 1982 we've supplied every drop of water to Hampden. What's interesting about Hampden is that they used to serve the water to the chemical company. There's still a 6" line from Hampden to the chemical group, but they've capped it well which is capable of producing 500,000 gallons a day which is adequate for the chemical group. But we supply all the water to Hampden. Next we have a Contract with Orono-Veazie Water Company which had to be amended because the original Water District, which was private, went out of business and so therefore they formed the Orono-Veazie Water District who also have capped wells, who also don't have the quality of water We have, so they, buy it from us. So what's happened in 10 years with Orono-Veazie? Well I discussed some figures from the University of Heine. The University of Maine tells me that they buy approximately 20 million gallons of water from Orono-Veazie a year, they pay a $100,000 for that water. My figures are that Orono-Veazie doesn't pay the City of Bangor who supplies them the water for that and for their own needs, much more than a $100,000. In other words, Orono-Veazie pays about 2 1/2 cents a gallon, or at least it did before the rate, and that's a cubic gallon, you divide that by ? to get an actual gallon, or in other Words there's ? gallons to a cubic gallon. Md they buy it at 2 1/2 cents and sell it to the University of Maine for 9 1/2 cents a gallon. Wow the same, what welve heard is it doesn't coat you anything to deliver water once the system's in. We've heard that because we've heard about excess water. But Orono-Veazie seams to think there's a value to it and they double the price to sell to the University of Maine. Okay. What else has happened in the last 10 "are? We have a contract with PEBC. Bangor Water District again comes to them and says, well we'll supply you water but you're going to have to give us -6 - some money up front, but we'll pay you back. That a good deal? Yeah it's a goad deal for PRRC. who's paying 058 of the water bill? City of Bangor. The increased water goes out of the district up to 408 now in 1989, yet we're getting 608 of the water and we're still paying 858 of the bill. I believe that's d subsidy of PARC that isn't shared by our community, as tipping fees are so called, shared amongst the communities but I think we're subsidising that. I don't think there's any question about it. i think what's interesting about that is in a complaint that I have to the PUC there's a law that says that if there's no investment in a service line outside a district, no investment, no dollars up, that the council, city council, the city fathers, municipal officers, have to vote whether that's to be allowed or not. But if they put 10 cents into the line going wherever it may go, they can avoid bringing the issue before the Council. In fact, the PUC says that you can invest no more than 558. They want you to scrutinize the PRRC contract and see what total amounts of money they promised to pay back. But in actuality, PRRC doesn't say even that they can invest 558, they say they can only invest 508. Bangor Water District had to go, get a waiver from the PDC, so they could expand their investment or payback from 50 to 558. We're not only wanting to give it away, we want to give a little bit more away. Do I think there's enough case to question and have more scrutiny over the Bangor Water District than we've had? I absolutely do. I think that we should know that there's alternate ways to expand water supplies to districts. I think that we should have the informed critical scrutiny as elected officials. i think to say that we can, we're going to politicize the system because the Bangor City Council would have a vote as to whether to accept the long-range plans of a Bangor Water District that may not include Bangor as a prime user is wrong. I think that if you look at numbers that you're talking about some time in the future we're going to spend $40 million because we're going to need that kind of money to service the area, then I think there should be public informed critical scrutiny of those decisions. I do believe that appointed trustees taking care of the day-to-day business is appropriate. I think it's appropriate. I think that when you ask who's to judge what the considerable needs of the District are, I think the question becomes, is that public policy as well as good business sense, or just good business sense? I think you have to say it's public policy.Md I thick as elected officials, we are elected to make those decisions on public policy. I don't thick we have to fear the public when we make decisions that have, in the beat interest of the community. And I don't think that when you tell your constituents why you voted one way or another on a bill as long as you had the sufficient facts and the complete and informed facts that they'll disagree with you. -7 - I've been told that there's enough scrutiny over the public, over the Bangor Water District. We don't need another one. I think we have to understand the role of the Public Utilities Commission concerning water districts. They oversee the technical installation of pipes. They oversee, through Department of Human Resources, the quality of water. They oversee that there's uniform rates developed that everybody's being treated fairly and not discriminately. What they do not oversee is local judgments on how much water should be taken from a resource to another. How much water arrce should have. Where that water goes. They don't have any particular, and they want to leave it up to local control under public policy. They don't care if we sell all our water off. They don't care who we sell it to. Bud they don't care, it's non-profit so they're not worried about whether we make a profit or not as long as they send them year-end statements and let them know what we're paying. They don't want to know if we're digging up holes and putting up towers just as long as we state how much money we're spending, how much revenues are coming in. And that's it. The public control and the public, the decisions of the District are left to local control. New that's exactly why I put this bill in to let the City Council of Bangor have a right to have a vote to know what's going on. I question how many of us knew until about 6 months, I didn't, of all these contracts and the ins and outs of the contracts and the amount of the water that's going out of the City of Bangor. I don't think they voluntarily came and informed I think everybody in this room knows they didn't come in voluntarily and inform us. We might have had something to say. Curiously enough I want to go to the lawbcok which is Title 35-e, Chapter 63, which I hate to say it they might have made a mistake when they called the City Manager the other day which I'd like to, which will bring a point to you. Chapter 63 pretty much has some oversight of water districts, issuance of bonds and notes, voters approval or disapproval of debt, liens, conformity with private and special laws, long term indebtedness of water districts, who has, when they have to make a public hearing on bonds, and so on and so forth. What's interestingly enough it also calls for the acting upon any proposed water district charter the joint standing committee, having jurisdiction shall obtain written comments from the municipalities that lie in whole or in part within the district. Well i read that after I read 6306 subchapter which i just before that. The chapter governs all water districts formed on or after January 1, 1982. This chapter does not apply to water districts formed before January 1, 1982, except for some subsections on retirement basically. You can understand ladies and gentlemen that there is no oversight of the Bangor Water District either at the State level to the voters or to the local level of the voters. I'm asking that we have local checks and balances. It's our system. It's not -8 - political. It's our syntax of checks and balances. It's our system that the Legislature recognised that people have a right to referendum. This Council recognises that the City people have a right to referendum. what I can't understand is the trustees of the Bangor Water District do not understand that the people ought to have a right to referendum. Why should you be afraid of oversight unless you're afraid that you may not be going in the name direction with the rest of the crowd? I don't know what else to say, but I do urge you to accept the Resolve before You. Thank you. Chairman Sawyer: Before you sit down, any Councilor questions of Representative Duffy? Tam I guess, or, Mary? Councilor Sullivan. Councilor Sullivan: Tnank you Mr. Chairman. Yee, Representative Duffy. I received the, you know, your open letter. Representative Duffv: Yen. I wish the rest of the District had. It still bulk mail and it will be out tomorrow. Councilor Sullivan: Oh, that's what I was going to ask you, how wide the circulation was. Representative Duffy: Basically that's anewsletter to my District which is what, one-foubth of the City. Councilor Sullivan: Okay. Thank you. Chairman Sawyer: Councilor Soenaud, did you have a question? Councilor Sosnaud: Yee, Representative Duffy, I've not been able to get an answer to this so presumably you'll be able to tell me. Is this bill going to provide for referenda on all District decisions or only on decisions to enter into or negotiate contracts to provider or sell water outside the District? Representative Duffy: There's two parte to the bill. One part of the bill is that the Bangor City Council would have the right of approval over amended or new or whatever contracts of water sold outside the District. It would not change the contracts that are now in existence. Okay. Unless they either wanted more or less or Whatever. Which gives me an opportunity to add just one thing. These contracts outside the City of Bangor total almost 4 million gallons if they, if they took all the water that they were contracted to have forever, they'd take 4 million gallons a day - if they were completely fulfilled, which is half the existing resource. The other half of it gets the same referenda rights that the people of the City of Bangor enjoy with the City Council to any decisions made by the Bangor Water District. Councilor Sosnaud: So it's any decision not just these decisions to buy or to sell --- _9_ Beoresentative Duffy: That's correct. Any decision just as any decision that this City Council makes is subject to petition. Chairman Sewer: Councilor Saxl. Councilor Saxl: The City of Bangor's petition, right to referendum petition, usually is a larger number of than What is in your bill which your bill is asking for 5% of 500 voters. Is there room to move on that, to amend those figures so we bring it into line with the rest of the initiative, or is that something that you feel strongly about] Reoresentative Buffy: No. To be honest with you research In Augusta made that numbers of petitioners from what other districts had to have right of petition. I certainly have no problem to conform it with the same one that the City of Bangor has. One subject I didn't touch on and, that not only does the Bangor Water District affect water rate payers. It affects the Bangor taxpayer. Bangor taxpayer I believe pays now close to $400,000 Worth of fire protection which is an extremely great amount of money considering that if you take last year's budget of $2 million dollars and the taxpayer, we're not talking about the Bangor rate Payer now, we're talking about the taxpayer,. pays 208 I guess would be of the revenues enjoyed by this, by this Water District. And its rate payers pay 12, what, $1 million, $200-350,000 of the bill. And $250,000 comes outside to the District. That means both the rate payers, and this is one of the reasons Why I thought it was appropriate for the Council to have the approval over the water sold out, because you would not only represent the rate payer. You represent the taxpayer. And I think when you represent the taxpayer, especially $400,000 or 20% of the, you ought to have some direct voting approval incorporated in the Charter. It is one of the other pointe, and It's on the last page of the Charter, and I was told by one of the Commissioners that we couldn't sell water for more than we could sell it anywhere else, but the Charter reserved, restricted us to charge more water than we charge our large volume customers within Bangor. But if you see, we're only restricted, I think it's on the last page, maybe next to the last page of this Charter, yeah, Section 30. Water rates shall be uniform for all classes of customer, conaumer rather, within the district. I mean as long as we weren't discriminatory we could charge a fair rate that's commensurate with the amount of water they use outside the district as long as everybody was charged a fair price. Fire rates in the City of Bangor were the highest, second highest In the State. I'm not sure what Portland Is but it's, we're darn close to Portland I believe for the city our size. I'm not the first one to complain about it. I believe that this Council's complained about it. I believe that former Manager, City Manager -10 - Sohn Flynn, wrote the PDC, a complaint as of 6 or 8 years ago, about the high cost of water rates. The fact that we're giving them the hydrants and they're charging us a hydrant rate for it. I thought was pretty fantastic. But explained it to the PUC that water rate has nothing to do with the fact you don't or do or don't own the hydrants, just a division of number of hydrants into the water that they, have to retain and you have to pay for it and keep in reserve. It Is interesting for me to hear that the Bangor Water District thinks, geese maybe it's about time that we spread that out amongst all the rate payers so that the taxpayer could alleviate the burden. What's interesting about that is that they could have done this 8 years ago. Why do they complain about it now? Because of being closely scrutinised, i.e., a black cloud hangs over them apparently. Why are they moving to make these things to be done? Because of close scrutiny. It wasn't, it isn't even suggested for the last 6 to 8 years. It is not a judgment of mine to know, and I'm not going to say that I should tell you and that I know should, beat interest of the City of Bangor, whether we should go in a regional water system, whether we should pay $40 million dollars to incorporate all the water and try to sell it out all over the district. I know that if I had a car and I let my buddy use it 408 of the time, and I filled the water tank up, or the gas tank up, and he kept bringing it back empty and he put all the miles on it so I needed a new car, I don't believe he's going to come back and help me pay for half the car. But being aside that, I think that the judgment ought to be done carefully and formally and with the greatest amount of oversight that we can have for the people in Bangor. (tape change) Tape #1. Side B Robert Miller: Tom, just a couple of drafting issues. If, I sent a note to the Council relative to some of these things. As I understand it, there are two issues in this bill. One is the question of Council approval for contracts to sell outside the City. And secondly, is a referendum provision which would permit a referendum on any decision of the District, not just decisions to extend service outside. Right? Representative Duffyt Yes. Robert Miller: Okay. Just as a comment. We have similar provisions in our Charter, and we've been going through this recently. Generally, on a referendum provision, at least as far as a municipality IB concerned, they distinguish between administrative or an executive decisions and legislative decisions or policy-making decisions. Those decisions which are administrative or executive in nature, decisions to carry out a policy, are normally not subject to a referendum process. Legislative decisions are and I just point that out because this -11 - seems to go further than our normal municipal referendum procedure. The, and you might want to consider that as far as the current language is concerned. The other thing is that this proposal does not contain a date specifically, or an outside date, when the election could be held. And you might want to consider adding somewhere towards the end of it a date that requires that it either be held at a special election or the next regular municipal election which is held within a certain time frame. Cause theoretically you could require referendum and the election could never be called under the current provision, it's totally discretionary. dust a minor, you know -- Representative Duffy: Yeah I didn't say we did it alright down in Augusta. Robert Miller: Okay, the other thing is you might want to consider is facing the issue of whether these, the item is stayed pending the election. in other words, while you're going throughthis petition process and whatever, and if it is, these are things, these issues always come up and if the language isn't clear it puts same of us, at least from a municipal charter point of view, i a position of having to make a judgment whether it is or not. And think it would be easier for everybody if you indicate, if the item is to be stayed, the decision is to be stayed, during the process. Representative Duffv: I thought about that just when you were bringing up the other and I standing here that I hadn't included a staying provision while the referendum was being. Robert Miller: Another item that's mentioned in the note, and I'll get you a copy of this, is that the municipal home rule petition process provides, has a similar provision as far as the petition process is concerned, only it requires a number equal to 208 of the last, people voting at the last gubernatorial election, in order to get the referendum on the ballot and allows, requires an election where the yes and no votes equal at least 308 of the last gubernatorial vote. And I, where the Council's now considering that issue as far as their own Garter is concerned, and it might be helpful. You might consider that. And I think that's what Jane was alluding to earlier in her comments. Representative Duffvx Yeah. And I agree. I didn't want to set the standards so low it was frivolous nor does the Council want to set frivolous petition or referendum to motion. Robert Miller: Okay, one other --- Representative Duffy: I agree with that. Robert Miller: Okay, couple of other things. These, couple other points and that is that you might, because the issue of whether -12 - petitions are freely circulated or aren't is an issue right now because of some legislation that the Legislature passed regarding initiative petitions. Iwould suggest that you might want to clarify that as far as this is c rned. Also from an administrative point of view, and I'm talking about the person who's going to have to administer these petitions, might be helpful if you establish a standard by which the form of the petition would be prepared. in other words, have either, provide for the form in the legislation itself, or establish a, somebody who is responsible for preparing a form. Representative Duf fv: I know what I can do fairly easily and that is to conform to the same referendum rules and promulgations that the Council has for their own --- Robert Miller: we are going through that process right now to deal with those issues, but that's --- Representative Duffy: I think, I do believe that even if you're not through with that process I can write this bill so that when yours comes into effect so does this bill in exactly the same accordance. Chairman Sawver: Thank you. Councilor Cohen. Councilor Cohen: Tom just answered my question --- Chairman Sawver: Oh, okay. Any other Council questions? Thank you Representative Duffy. Representative Duffv: Thank you. Chairman Sawyer: anyone else wishing to speak? Hugh Morrison: Hugh Morrison, speaking on behalf of the Trustees. Ihad a hand up.. Councilor. It is the position of the Trustees of the Bangor Water District that LD 2189 should increase, would increase costs to the rate payer within Bangor by unnecessarily subjecting the day-to-day business decisions of the District to the immediate veto of the Bangor City Council or to local -initiative. We take this position for three reasons. Number 1, it duplicates the decision-making process which is already in place with the PUC. The decision-making process for this affair for the District was originally decided by the Maine Legislature and by the residents of Bangor when the District was Bated. No factor since the creation of the District have intervened, to cause a reconsideration of that judgment. Number 2, the District is subject to PUC review of major policy decision upon petition of customers to the District. Indeed, Representative Duffy recently utilised this process. In any instance where the PUC receives a complaint, the PUC generally conducts an investigation of the matter. That is the subject of the petition. -13 - Number 3, it would provide a negative incentive to regional solutions to a cost sharing approach to water service issues. And In response to Representative Duffy, I would like to also quote from the Charter Section 3. Contracts for supplying water. Said district is hereby authorized and empowered to make contracts for the supply of pure water with the City of Bangor, the inhabitants thereof and/or other towns, cities, corporations or districts and the inhabitants thereof as may consistent with the needs of the inhabitants of the District hereby created wish to purchase water. Continuing on. Pricing of water service is based upon the following. As a regulated utility, the Public Utilities COYmi6eien has historically allowed water districts to charge for the cost of production and distribution not for the fair market value of the commodity, for water as a commodity. Production is the coat of producing the water. The production cost is limited to any treatment of the water supply. Unlike electricity the water already exists and the right to that water are granted by special act of the Legislature when a water district is incorporated pursuant to special legislation. Distribution is the coat of delivering the water from the source of the supply to the customer's tap. Generally for water districts with the existing source of potable water, a major cost of water service is in the distribution cost. Since the major cost of water is the distribution costs, rates to individual customers within the City of Bangor are higher than the cost charged by the Bangor Water District to the Hampden Water District and the Orono-Veazie Water District. This is so because the Bangor Water District provides individual distribution services to each customer within the corporate limits of the City of Bangor. It does not provide individual distribution a. s to rate payers in the Town of Orono, Veazie or Hampden.And those towns beyond the cost of obtaining raw water from the Bangor Water District, the Hampden water District and Orono-Veazie Water District charged their rate payers an additional distribution coat. it is essentially true that the Bangor customer Paye 858 of the r of the Bangor Water District while receiving 658 of the water. That statement is only true as far as it goes. Again, the major cost of water service for Maine water customers is the cost of distribution by the water utility. Because residents within the City of Bangor receive individual distribution services free the Bangor Water District, they pay a greater percentage of the revenues to the Bangor Water District. But put simply, the fact that Bangor customers pay B58 of the revenue to the District for 658 of the water cannot be used as the comparative statement to suggest that outside customers lay lees for water distribution distributed to their homes. To do so is to mix apples and oranges. The 158 of revenue that outside customers pay to the Water District does not take into consideration the distribution costs that those rate payers pay to their own utility. To -14 - illustrate this point is used to look at so of the cost comparisons for water rates within your municipalities of Bangor, Hampden, Orono and Veazie. Average water user quarterly rate for the City of Bangor $25.96. Hampden is projected to be $36.19. Orono-Veazie is projected to be $40.00. And just as an aside, Brewer currently pays $35.36. And that's for 2,000 cubic feet of water. Comparing these rates one begins to be more fully appreciative of customers of the Bangor Water District who reside within the City of Bangor pay less Overall for their water than do customers of Orono, gestic and Hampden Water Districts who reside outside the City Of Bangor. Moreover, in the future, with the increased costs of producing water outside customers will have to bear a greater share of the burden for producing that water. This deed to share expanding costa has analogies in the area of sanitary sewage treatment and solid waste recycling and disposal. indeed, as part of the late, last rate proceeding, rates for customers outside the Bangor Water District increased by a greater percentage for than those customers within the water Disrict. There are two ways to limit rate increases to Bangor customers. One is to reduce production and distribution costs which are Improbable because of expanded regulatory requirements. Or, two to maintain the rate base for the Bangor Water District including outside customers. Of these options, the second is more realistic. It is not probable that the District can significantly reduce the production or distribution costa. Costs of production will increase as the Federal regulatory requirements are expanded under the Federal Safe Drinking water Act. Furthermore, if the Bangor Water District is forced to find a n of supply, it is likely that filtration and treatment requirements would be expanded. Thus, the only option for keeping costs to individual City of Bangor water customers stable is to maintain the rate base of the Bangor water District. That rate base includes the outside customers to the Bangor Water District. These customers will be virtually Imported in two ways. Due, they provide a net income to the District and two, they are sharing in rapidly expanding future costa. The incentive to outside customers to contract with the District is reduced if the operation of the Bangor Water District are subject to immediate veto of the Bangor City Council to local initiative. The Trustees of the Bangor Water District are of the opinion that the existing coat of producing and distributing water to residential customers must be offset by net income presently generated by service to outside customers. In 1988 there was $311,000 in revenue against a $60,000 cost for service. More importantly, the State of, the City of Bangor has encouraged, the State and the City of Bangor have encouraged and pursued regional solutions to share the expanding costs of meeting regulatory requirements in the area of solid waste management and sanitary -15 - sewage treatment. Facing requirements under the Safe Drinking Water Act and new State legislation, the Trustees of the District support coat sharing over a broad base, rate base. For these we strongly urge the Council to reject a new decision-making process proposed in LD 2189. Bud in closing I'd like to refer the Bangor Daily News today just a couple of sentences. Number one, perhaps the best reason to turn down this proposal is that it isn't needed. Number two, proponents of the bill have failed to demonstrate that there is sufficient problem with the management or decisions of the Water District to warrant such extreme alterations to the Charter. Thank you. Chairman Sawver: Before you sit down, Councilor Baldacci. Councilor Baldacci: Yes, thank you Mr. Mayor. Mr. Morrison, haven't you just said that you recognised that there hag been a problem with the distribution and the contracts to the towns and inhabitants outside the District? I mean, it seems to me you just got done saying that you have to take steps to correct the fact that towns and cities outside the District who you now supply water to must at some point share the cost of the distribution. Hugh Morrison: No. That doesn't say that at all Gerry Councilor Baldacci: You haven't said that. Such Morrison: No. Councilor Baldacci: Do you feel that they should? Hugh Morrison: They, not the distribution. The distribution is not, that belongs to the individual water district. Orono-Veaaie has its own distribution system. Hampden has its own distribution system. we only provide it to the tap for example, through a pipe. Councilor Baldacci: So you provide a pipe. Hugh Morrison: we do not provide --- Councilor Baldacci: Do you provide the pipes? Hugh Morrison: The pipes are - , yes we do. The pipes are already in place and if you look at the handout that's where the $60,000 comes from. Councilor Baldacci: Are some of the new standpipes there holding water for for Hampden and Veaaie. Hugh Morrison: No way. The new standpipes are holding water for the use of the people of the City of Bangor. Basically, the newest standpipe is for pressure up on, up in the Bomarc area and Burleigh Road area. It's a pressure problem. -16 - Councilor Baldacci, Oh. A couple more questions. Chairman Sawyer: It's your floor. Councilor Baldacci: Okay. You mentioned the possibility of the new filtration system. At the present, if we, and you also mentioned that one of the possibilities of keeping rates low was they I guess it'sa no -growth maintaining the present distribution system? Such Morrison No. Keeping the rates low? Councilor Baldacci, Yeah. Or maintaining the present rate. Hugh Morrisons One of the reasons we need to maintain it is because we do need those people outside currently paying us the $250,000 extra, which is indeed returned to the Bangor rate payer, in a lower rate. Otherwise we'd. if for example we shut them off, the rate payers in the City of Bangor would have an immediate 12 1/2§ rate increase. Councilor Baldacci, I guess my question becomes that in making these contracts with outside towns, wouldn't it be possible to factor in at some point the projected, if there is a cost of distribution, that cost into the rate that they pay? when you engage or you begin contract negotiations with towns that want to hook up to Bangor water? Hugh Morrison: in the future we might look at a different way of doing it, but currently we don't because those contracts are already in place and we do not, Gerry, own their distribution system. Councilor Baldacci, well I'm not saying that, and I don't think from what I've read as far as Representative Duffy's bill goes, those, his bill does not affect the existing contracts. Hugh MorrThat's correct. And we will not enter into any outside contracts unless we have sufficient water to do that. Currently we are re -assessing all of that based upon the Sunapee Char Study etc. We may not have additional water to sell outside of the City. In all probability, we will not. Councilor Baldacci: And last, one last question, do you have, you've heard Representative Duffy's speech or presentation. Do you have any problem with the figures that he presented? Do you have any arguments? Hugh Morrison, He presented so many I would have to go back and sit down and do some work with all of the different ones he presented. If you have a specific one --- -1? - Councilor Baldacci: As far as the contracts, outside contracts, the amount that the University of Orono is paying. Are you aware of what they are paying? Hugh Morrison: Would you repeat that? Councilor Baldaccf: The University of Orono. The Town of Orono is Paying something for --- Hugh Morrison: That's correct. Councilor Baldacci: Okay. Do you have that figure? What Representative Duffy gave, was that correct? Hugh Morrison: I can get the answer for you, but I will give you a quick off -the -top -of -the -head answer. He said 2 cents a gallon and selling it for 4 1/2. That is up to them. They furnish the distribution system for, from the point where they. take water from e through their whole system to the University. That's their profit margin so to speak but it isn't really profit. They're a nonprofit organization. Councilor Baldacci: Nothing further. Chairman Sewer: Any other Council questions? Mr. Morrison, I have a couple questions for you. During the debate it was suggested that the Water District has proposed having the costs of maintaining hydrants borne by the rate payer as opposed to the taxpayer. Is that something you are working on? Hugh Morrison: That is something We are working on and this did not come out of the woodwork as a result of Representative Duffy's Initiative. This came out of discussions with the new Manager Rd Barrett, almost from the day he arrived. Chairman Sawyer: Since we ve been talking about property tax relief, would you hazard an estimate of how much time that might take to change? Hugh Morrison: I'll defer that to Peter. Chairman Sewer: Alright I can wait. You want to come up and make some overall comments. Why don't you hold off and make a note to yourself. Second question. Representative Duffy I suspect implied that if the, if the City only used 65% of the water that is farmed out, 35% of it I understand your comment about at the tap if you will, but would the POC limit you from charging contract communities when the contracts come back up for 35% of our total costs - if they are consuming 35% of our total water? Ruch Morrisons I could not answer that. That's another one you probably better refer. -18 - Chairman Sawver: Write that one down Hush Morrison: That has to do with POC rage and I'm not that up PUC rage. Chairman Savvier: Thank you very much. My other councilor questions of Mr. Morrison? Thank you. Anyone else from the audience wishing to speak? Peter Caldwell: Chairman Sawyer, members of the Council, Pd. My name is Pater Caldwell and I'm General Manager of the Bangor Water District and I'd like to respond to some of the figures that Representative Duffy had brought up, and maybe shed a little bit re light on them. Due of the first things that he brought up IS that the citizens of Bangor bought and paid for the District, and I'm here to tell you that it's not paid for yet. in fact, we owe $5.2 million dollars because of things that we've done for the system, most of which are inside the City of Bangor and also including our main transmission line and our new, well our 30 year old pumping station at Flood's Pond and so forth. So I'd also like to make you aware of the fact that the people outside of Bangor are helping us pay for what's inside Bangor, to the tune of an additional $250,000 over and above what it's costing s to provide the service to them for. Md actually this money represents about half of what our annual debt service is for principal and interest on the money that we owe outside the City. And that's significant I think. Ten years, it was reported that ten years ago we a pumping 3 1/2 million gallonsa day. Ten years ago We were pumping 9.8 million gallons a day and this year we're pumping 5, well actually 1989 that is, we pumped an average of 5.91 million gallons a day, not the 6.6 that was reported. It is true that million gallons a day, or roughly 2 million gallons a day, are going outside the City. When we made our contract with IMC in 1978, I can tell you that these things were not entered into lightly. It took many, many months to negotiate that. in fact, I think ? to 8 months to negotiate that out. And the District at that time told them they could take on occasion n more than up to 900,000 gallons a day. We did not contract forever to give them a million gallons a day. In fact, that contract is now null and void. It's over with. It's done. It was a 10 -year contract and now we treat them like any other customer, and if we don't, you know, for whatever reason we have to shut them down temporarily we can shut them down. And they understand that. In fact, in 1988 they needed to take a few more, a little more water on a daily basis because they had some problems. They called u and asked us if they could. They just don't go ahead and do these things cause they understand the situation that, you know, we have to monitor water supply and make sure that we have enough water for -19 - everyone in the system. That also, the, as far as water credits go, the citizens of Bangor actually, well I should say the District in that system, invested $1]],000. In return for that, the then International Minerals a Chemicals paid for an additional $235,000 worth of improvements to our system, including a new, a dam at Flood's Pend. We never did have one? so that protected our safe yield and nullified any impact that they were going to make on us. They've also helped to install a number of things to our system for improvements. The, and these, by the way, all these rebates, all these contracts that welve entered into with these outside, like PERC and IMC, have been approved by the Maine Public Utilities Commission. They've scrutinized these things, asked us questions about them, and they required us to get into a rebate process. Essentially what's happened with the, with the District is that the, in providing water to them if you look at the contracts, is that they are paying all extra costs to get water to them. And this includes chemicals, power, any extra labor involved in providing this service to them. And that's all. These are in the PERC contract and also in the now defunct IMC contract which Linden Chemicals A Plastics took over. And the Trustees were very careful to protect the citizens of Bangor. They did not want the citizens of Bangor being impacted by people outside of Bangor. There's no reason why, nor did the citizens a subsidise FERC or LCP. What happened was. we've got Water which is a God given substance and wevadded chemicals to it and we've pumped it to them. They've paid all the extra costs. We don't require that of any other customers and especially in the City of Bangor. That's all built into the rates. So essentially you could may that we're surcharging them, and they were paying the price. As fax as Hampden goes, the District is supplying moat of the water to them. They used to take about 350,000 gallons a day and they're now taking about 250,000 gallons a day. They were serving the WP plant and now they're not doing that anymore. As far as the Orono-Veazie Water District goes, they do not have capped wells. Their system, they do have problems with their system, they've got high iron and maganese problems. They do have wells and I've been talking with those folks up there and they can run their system, but it's extremely expensive and very troublesome for them. It was reported that Orono-Veazie Pays us a $100,000 a year. They pay us in fact about $190,000 a year roughly. PERC, on the PERC contract, the District again, the Trustees and management, worked extremely hard on that contract and they worked with the, we worked with the Public utilties Commission. in fact, we felt that we didn't, we should not have any obligation to these folks at all in terms of investing any money. And we subsequently lost that fight with the POC but essentially what we're doing, if you read the contract closely, is that they're getting, they're getting their water again like INC, they're paying for all extra costs of -a0 - pumping it to them with power of any extra work and so forth. in fact they put all the money up front to build, to do the studies and build the booster pumping stations that were required to get water to them, and in return, we're getting -- instead of having to invest any money which we didn't have in the project as is normally required by the Maine Public Utilities Comnission, we negotiated a contract whereby PARC put all the money up front and we are essentially tradingchecks if you will. They're getting the raw product of water for nothing and they're paying for everything else. And essentially, that's no money out of our pocket at all. That's not one, I say trading checks, that's a matter, it's an expression, we don't give than anything in fact. And in turn, they're paying again for all the extra costs of getting that water to them. 'There's no impact on the citizens of Bangor for that. I don't, I'm not sure, I still don't understand what our normal investment contract is but completely, but I think it's a situation whereby if you, if the District does not elect to invest in a main extension, on a main extension and accepts that as a policy, we have to than, before we can institute that sort of thing have to come to the Council to get permission to do that per the legislation, enabling legislation on that. Bo we're being dictated to. I'd like to underline the fact that we're very heavily regulated and a lot of things that we do we don't like to do but we have to because of PUC regulations. That's just a fact of life, and will continue to be and is getting more so in the future. As I think Tom reported in one of his letters, in fact it was the open letter to his constituents, that i Representative Duffy in the open letter to his constituents, noted that the Commission was allowing districts more freedom. Well, I fail to see that. There's more and more regulation all the tine ming out. The one place where we did receive some freedom was to institute rates on our own without having to go directly to the PUC, and believe me that's a blessing because if you remember back to the 70's and early 80's that they were holding our rates up to 9 months and when we needed than, you know, probably 6 to 9 months previous to even submitting the case to than and so it's a, it's sally asavings to the people In Bangor in terms of improved operating system and having a system that whereby we can plow money back into it and keep the level of service up. AS far as reporting of financial statements and so forth, that's another area where there's ongoing increased scrutiny of water utilities and power utilities and so forth. That's a fact of life and we can document that by the number of pages in our Annual' Report to the Maine Public Utilities Commission. It's, you know, nothing's getting any simpler. I don't think in your lives and certainly not in ours either. The (end of tape) _21_ Tape 42, Side A . goes into the rate structure inside the City of Bangor. I'm in hopes that it probably will take in the vicinity of 4 months or so to prepare the case and that's all, but once you start dealing with the PUC and we're talking about an alteration of PUC policy and What we're going to have to do is sell this program to them, and that might take a little time. So, but we will certainly put r best efforts into it and we will be working with Pd and his staff on that to build up, you know, background justification on our case here. The Trustees are behind this move a 1008 and we are moving forward on it. The, I forget what your other question was. I Was busy Writing this one down at the time you asked. Chairman Sawvery would the, would the PBC, I understand your argument but Would the PUC allow you to bill abutting communities or other users a pro rata share of the total coat. That is, if outside communities are in fact using approximately 351 of the total Water would the PUC allow you to bill then for 35% of your total cost? Peter Caldwell: I think, Well let me answer it this way. we have met with the Chair, the Trustees and the management of the District met with both the Orono-Veasie Water District and Hampden Water District and we Informed them that they will have to be paying in the future an increased share of the operating cost of the utility over and above what they paid before on a pro rata basis. They in fact, in our latest rate increase which is effective October filth, 1989, the average home, average customer in Bangor proper Said a 22.78 increase and the, and our increase to Orono-Veasie and to Hampden was 29.58. And we're going to continue to do that sort of thing. The fact is if they're going to, I think the philosophy is if they're going to continue to depend on the District, the Bangor Water District, then they're going to have to pay an increase, an incremental share in the cost of operations. That's all I have. I'd be glad to try to answer any questions. Chairman Sawyer: Any councilor questions of Mr. Caldwell? Thank you. Anyone else wishing to speak from the audience? Robert Baldaccf: Well, good everting. Thank you Mr. Chairman and City Councilors. Thank you for the opportunity to appear. I hope I have the opportunity to ask some questions of the General Manager of the District while I'm here, to give, to back up information. I think when the Manager was just saying that we pay lower rates than they do in Orono-Veazie, he's right. And, but he doesn't say that about Hampden which has been paying less than we do and they're buying it secondhand. Now it's only been recently that they plan to go up. -22 - The other thing that's forgotten in this whole, it looks like the shell game and it doesn't look too different than the S&L game that Congress is playing, that they've got the bail-out fund out of the budget so it doesn't reflect the budget or deficits or whatever. And this is what's happening here in the District. They want to take it off the tax rolls which is $900,000, which is 20%, added to the rate payers, you've got to, if you're going to switch that over to the rate payers you're adding 208 to the rates. Now I know that this seems great, it's off the City budget, and you don't have to deal with $900,000 because then all the Control is at the District Charging you the citizens your 208 or 22.9 plus the 208 because somebody, and it's only in Bangor, that's going to be picking that UP. We're paying 85 cents of every dollar and its interesting with a utility Man on the Council who should be aware of rate cases, should be expert as you are Tom in your field, and I'm Sure when the Bangor Hydro goes for a rate case the Bangor water District doesn't know what it is to talk about scrutiny. And the fact that the Bangor Hydra has to develop their infrastructure to the point that it, they need the rate increase. and that rate increase is charged to power used. Unlike our Bangor Water District with outside of Bangor. I don't mind being a good neighbor, and I want to continue to serve the outside areas, but it bothers me when they're not being neighborly and participating with the actual coat. Bow aside from that, I did want to come up and just say this - that we've gotten away, it's almost like going before the PUC at a rate hearing here and I'm sure you've heard enough about everything to do about nothing on the agenda as Councilor Sosnaud, and the question is, does the City Council want to add to its public and political responsibility as an elected body, to take on this task. That's all it is. It isn't how much Hampden is getting, or Veazie, or who wants to grow. And all the people want is some elected body like yourselves, the Political end, the safeguard, and the accountability seat that the public has for guarantees that look it has the accountability, it should be good. If it didn't have accountability and I read in the Bangor News; Editorial surprised at the fact that here's the Bangor Daily News who spent thousands of dollars in the District Court to get the doors open at the Brewer City Hall because the public's right to know. It surprised me to see that they opposed it on the fact that we Ire Putting in another layer of government. Well the layer of government we're putting in is there for the people. Now, if that's uncumbersome, then somebody ought to look at the evening news and see what's happened in Prog and Hast Germany because if you don't keep these things open, and then you just make it easier and it looks even worse than it, than it should. Open the doors. ' Don't be afraid of the public. We're all part of this. We're on the same team. You know, we're not fighting, I don't want a job at the Bangor water District. I've got enough to do. And I'm sure Peter does a great job. I think -23 - that they did get a little carried away only because of tradition, only because in the past they've never bad to come to the Council. We've had instances of the City Manager just to find out that the PUC, you know they have a graph on how to determine the cost of fire protection. Several months ago I asked the City Manager if he could, understood the graph and could explain it to me. He said he was going to meet with Peter Caldwell and find out. Well, apparently, I called the Manager since. This was several months ago. And we still don't know today how that graph is used for fire protection, how to estimate the cost of fire protection. And it's very important because this ease graph is the PUC graph that's used throughout the State. Now keep that in mind and then why wouldn't I ask the question, why does the City of Lewiston twice our sive pay $200,000 for fire protection a year and Bangor pays $400,000. 1 just look at it and say, you know, I know what 2 and 2 is, and I know Lewiston is bigger. And they've got the same graph. What are they talking about? Maybe Mr. Caldwell could straighten us out an this. Thank you very much for your time, but I did want to get back to the issue was Representative Duffy's thing, and I hope that you do support it because it is in the. public interest. Chairman Sawver: excuse me before you sit down, please. Any Council questions of Mr. Baldacci? I have one. Robert Baldacoi: Sure Tom. Chairman Sawyer, I understand your concern on the hydrants being taken from the taxpayer to the rate payer. Robert Baldacci: Right. Chairman sawyer: My suspicion is and I don't have the answer to this, it's my suspicion that the rate payers include a larger body than the taxpayer. That Eastern Maine Medical Center pays for its water, St. Joe's does. --- Robert Baldacci: Exactly Imm. Exactly Tom. I'm sorry you're not through. Chairman sawyer[ No, no I just, do you have any sense for what percentage of non -taxpayers are in fact --- Robert Baldaccie I definitely do and this brings up another Point. Is there's 508 non-taxable property which in my mind is a smokescreen okay. The thing is what are these places doing. They're providing a service, right, to the community. Do you want to do without the Eastern Maine? Don't they pay taxes on commercial properties that they own? I just think that they're off base going, using this 5080 well how the hell you going to change the State and Federal laws? I mean it's all fine and good. It's just spinning the wheels here you know. I don't see any, you know, the thing is that the eastern Maine General, St. Joe's, the -2a- schools, the City of Bangor is probably 60% of that 508. T'he Bangor Airport, the schools, the public buildings, and I think this if anything is a witch hunt. That one there is to get you quYS volved ina lot of time that doesn't mean anything to the taxpayer. I think what we should do, I mean we are a service center. We've got a regional airport. I me we've got the hospital, it has doctors, nurses, it employanthe largest employer., as I read it was 2,200 people. Well it's a great opportunity for the City to just recognize those things, and we just can't, you can't throw money at every problem and that's been one of the District's problems that I see. I mean, for the sake of growth, well let's pass another bond issue, let's go. Now, all these pipelines, R.H. Poster, Hampden; Bangor Daily News, which in my mind has a little bit of conflict of interest, pays taxes in Hampden and gets Bangor Water and they're still in Hampden. Now does that go through? Do they pay the water bill in Hampden, or does Bangor get it? I'd like to ask the question. So Bangor bills than and they're still in Hampden. Well, that's a real growth. I think a government that's beyond reasonableness. What we've got is fluoridated water. There's another, I don't want to keep boring you Tom, but fluoridated water was never voted on in Hampden, Orono, veaz£e, Orrington, Bddington, Hermon. I know we voted it out and then We voted it back in here, but apparently the people that live outside these thinge, this district, in those cities and towns, didn't have that right. You're going to get the fluoridated water, that's the only water we got. This, the public, and that 'a why I'm so much in favor of Tom's bill. At least the Council has a body of elected officials that are accountable to the public. That's all I want. I don't want to run the District, or do a damn thing. I just don't like it when. people feel it's cumbersome. I couldn't believe the Bangor Deily News editorial. I thought they'd be, after going through using the public right-to-know and costing them thousands of dollars, write an article that says well the public just makes it cumbersome, a lot of noisy people there, well that's what people are all about. Get in the real World. Okay. Tom. Peter had a question I think, unless you have another one. Chairman Sawyer: No I'm all set. Robert Baldacci: Peter, did you have a question to me, or --- Chairman Sawver: Should we set up two mikes? Peter Caldwell: I'll get the Kiss 99. I'd like to try to respond to, Peter Caldwell again, Bangor Water District. I'd like to try to respond to some of Bob's questions and so forth. Regarding the Lewiston situation, Bob brought that up earlier on and we checked that out and I'd say two things. First of all, we can back up anything we've done in terms of why we charge what we charge for -25 - hydrants in Bangor, and it'll meet the closest scrutiny of the Public Utilities Commission without question. We follow the, what's called the Wisconsin curve, that's the graph that Bob Spoke of a few minutes ago. And we're paying, we're Charging about 179 of the groes revenues fox public fire protection, and that's at roughly $400#000 that was brought up. earlier on. And so far as Lewiston is concerned, my second point is that they are heavily subsidised by the taxpayers, that i , the water utility. The water utility actually exists as a sub -department of the Public Works Department and they utilize a lot of the same people, like dispatchers and financial people and so forth, and those, so they're not really adequately reflecting the cost for providing service, water service, 1n Lewiston. And I think if you check with than, you'll £Intl that this is a fact. I will not comment on the numbers that they come up with. We did talk to their Superintendent and we found that they're, well, they're not quite right okay. That's all I can say. Bud that's essentially the way this thing went. Insofar as the District, insofar as Bangor Water District's operations are concerned, we poet the notices of all our meetings, they've always been open to the public and they will continue to be. And the only time they're not Is when we're in executive session in accordance with the Maine statutes on executive sessions, and that doesn't happen that often. Essentially I guess that's it. I'll try to answer any other question. Oh, the service in Hampden by the way is, I got a surprise when the, for example, the Bangor Daily News came to us for service when they Were building their new plant down inmHampden, and I sent them two lettere telling them they couldn't have service. And then I said, well wait a minute, when I came to work for the District i 1974 we were all reserving the Carr Brad in Hampden, so I said well in order to have done that we would have had to go to the Public Utilities Commission for the okay to go ahead to serve outside our territory, what was then our outside territory, and I found out that the PUC issued an Order of Decree that the Bangor Water District could serve the area above the Maine Central Railroad tracks in Hampden. net'a kind of a curved area and it amounts to, I don't know, 250 acres of land or something, some figure like that, and to and behold part of that area was where the Bangor Daily New building was proposed to be built. And my face was red. Than I had to go back and apologize to them, and say well, that is part of our service area and we really can't deny you service. That's the way this thing fell, came down, so just wanted to clarify that. Chairman Sawyer: Any questions of Mr. Caldwell from the Council? Councilor Baldacci. Councilor Baldacci: Yeah. Mr. Caldwell, you have hired a public relations firm, haven't you? The Bangor, I mean, the Bangor Water -26 - District has hired a public relations Peter CaldwellI We've hired a firm, that's right, to help us communicate with the public. That's correct. Councilor Baldaccit So you do recognize that there has been a problem with communicating with the public in the past? Peter Caldwell: No, no. I think we've had a problem in our backflow and getting the word out on the backflow situation. We're a little bit behind a power c n that aspect. But I don't think, no, I don't think we have a public relations problem. We need to communicate well. We're going through a lot of change due to regulation, due to the Sunapee Fish Char problem and so forth, and We want people to know what's going on firathamd. and as it is, our staff spends most of the time trying to keep up with the new regulations and everything that's going on and we're just not geared up to do those things on a first class basis on our own. So we have to have outside help and that's why we're going forward the way we are. Councilor Baldaccit Now, let's see. You mentioned the PUC a number of times. It is the regulating body. But you were at the same hearing that I attended regarding that backflow issue weren't you? Last rear. Peter Caldwell: Here Councilor ealdacci: In this room. Peter Caldwell: Yes I was Councilor Baldaccit And you, did you hear the PUC mention that their policy issues such as that were a matter of local control? And therefore pretty much ended the investigation? Do you recall that? Peter Caldwell No 1 don't recall it happening that way necessarily. I don't know, I don't necessarily agree with that but I would like to point out that we held hearings in this very room on the backflow program and I think we had a total of 4 people come to 2 different hearings. Bud these were all in the paper and so forth and we have tapes of than and so forth. Councilor Baldacci: I guess my question is, it's basically you keep mentioning the PUC as the regulatory body. I'm not denying that but I'm, what I'm saying is there were some aspects and the PUC admitted that and my understanding of that hearing that there are some aspects of the Bangor Water District, or water districts in general for that matter, that do not fall under PUC regulation. That fall somewhere in the cracks. Usually in most water districts that becomes a matter of local political control. Antl in this situation it doesn't. wouldn't you agree? Peter Caldwell: No I don't agree. I agree to the extent that it doesn't come under the PDC. It comes under the Division of Health Engineering and they are the ones that said you've got to have a public hearing on this. And that's why we want forward with it. Now we're regulated by the Public Utilities Commission, the Division of Health Engineering, and depending what we're doing, the U.S. Army Corps of Engineers, the DEP, Inland Fisheries s Wildlife. I can go on naming them. We just can't go out and Willy Billy do What we want to. Chairman Sawver: Any more questions of Mr. Caldwell by the Council? I have a question on a slightly related issue. Do you have, could you hazard a guess on what percent of your rate payers are not taxpayers? Including the Airport, City property? Peter Caldwell: well, it's going to have to be something a little less than what the City's figures are because of the out, people in the outlying areas that We don't provide service to. So I would guess maybe, what is it 51% Pd, I would say that probably 49 to 504 are non -taxpayers. Chairman Sawver: In order t0 get an accurate number, would you need to work with the Assessing Department to find out which properties do and don't pay? Peter Caldwell: Well yeah I think the answer --- Chairman Sawyer: Do and don't pay taxes? Peter Caldwell: To answer your question yes. I'm not, I think that what we're going to try to do, i might go one step further, is try to integrate into the rate structure into the City the charge for public fire protection. And if wesuccessful in doing that, we're going to spread the rates out and somewhere, I would guess that probably it willreduce the coat of public fire protection to each of us taxpayers, by some figure of around 30 to 504. And I don't know what that exact figure is yet. But. You know, what you're doing is you take a given cost, a fixed cost, and dividing it, spreading it out by over twice as many people if you will so you're halving your coats of the process. Chairman Sawyer: Thank you. Peter Caldwell: I wouldn't Bay exactly 508 because there's a factor in there which I can't quite account for. We haven't studied it out. airman Sawver: Thank you. Mr. Barrett? -28 - Edward Barrett: Council Chair Sawyer, I think clearly what we need to do in regard to that study is we need to take a look and determine what our average taxpayer currently pays as his tax bill toward fire protection charge, and try to compare that as much as we can with what he Would pay in addition to his water bill. and that depends upon a number of factors. Obviously depends on water sage. I think the concern that I have, and have had since I've been here, is that some major institutions in town which represent a substantial investment in our part in terms of fire service and fire protectionare not helping to pay that bill. That would include obviously the main institutions such as Beason College, Eastern Maine, the SMMI, those kinds of institutions. And part of this is going to depend on water utilisation, and how much water is used by those tax-exempt institutions, and an analysts of what the rate Impact Would be and how that would affect the individual taxpayer. So I think when we go through this, we'll clearly be analyzing it and trying to determine the impact of a rate increase on the average homeowner versus s the impact of the continuation of this charge in the tax rate Once we get those numbers, we'll have much better handle on it and I understand that's what we'll be doing in working with the Water District. Chairman Sawyer: Thank you. Any more comments from the audience? Let's, someone who hasn't spoken yet please. Joe Dauphine: Mr. Mayor, ladies and gentlemen of the Council. I'm Joe Dauphine. I live at 191 Grove Street in Bangor. I've Dean listening to this conversation and the debate and how it's been going, and I've been kind of hearing some of the Council saying yeah we want some control over the Water District. I think they've been doing a Pine job of what they've been doing as far as supplying water for my house. If they're truly interested in saving money and cost of operations, the only way I can reckon it to is one that we've done in the area where I work. we've gone Into the area of direct depositing of prisoners arrested to the County Jail.and that's a savings to the citizens of Bangor and Orono, Old Town, State Police, the State budgets. But if they're truly Were trying to save money in operational coats, then why don't they liken themselves, like Lewiston did, and you folks, as true taxpayers and representatives of the taxpayers, take the Water District and bring it, not only bring the oversight back to you a far as where they go to proposal, but Peter Caldwell himself said, they save money by dual purposes - by dispatching two different types of dispatchers, they're paying for that. Two types of computer systema, you're paying this computer system here and you're paying a computer system up there. Why can't you link your computer systems together and save us some money? All that will all do is bring down the rate payers rate of operating costa of water for the citizens of Bangor. And if you can do that then that will be a real savings. I mean we're talking pennies and nickels and dimea for a foot of water. Maybe we can get it down to half a penny for the foot of water and be able to do some expansion for -29- the citizens of Bangor. sr. mayor, yourself, you've gone through the citizens of Bangor and helped to expand Hayford Field with a nice arena out there. And it's very nice to go skating on it. You take great pride in this City by doing that. You should lead the way and help no keep the control of the Water District under the people that voted you in office and you also should help us look at ways in making the Water District more feasible in working with the City because we have dispatching and trucks and this public works, that they could probably use, and backhoes and front-end loaders and why we buying front-end loaders for the citizens of Banger's Water District then buying a front-end loader for Public Works? I mean, you know, that's a lot of money of, $200,000 for one of those riga. An $80,000 dump truck. You got to buy one for the citizens of Bangor and then you got to buy one for the water District, then you pay your water bill. These things have all got to come under line. We got to get more accountability of what we're doing and how we're spending our money. Every day I go through the purchasing of the Sheriff's Department and I go through great lengths to buy a toothbrush for an inmate. You know, it's a lot of money being spent and we got to be marre accountable and I think, I appreciate your thoughts on maybe doing this for the citizens of Bangor. Thank you. Chairman Sawyer: Any Council questions of Br. Dauphine? Thank you. I'll get back to you. Anyone else that hasn't Spoken yet? Year air. If you'd please identify yourself. John Bean: Yeah, my name's John Bean. I live on Ohio Street in Bangor. I was just thinking in the future if the Water District wants to expand the whole system to cover more areas, where is the accountability for that? Say they want another $20 or $30 million dollars, how is the taxpayer in Bangor going to have any say on that? That's my main question. Chairman Sawyer: Well, if you can wait a minute I thick Hr. Caldwell's writing down his response. John Bean: That's my concern right there. Chairman Sawyer: Anything else? John Bean: No that's it right there. Chairman Sawver: Any Council questions of Br. Bean? Thank you. (tape change) Tape 92, Side B Representative Peterson: Good morning, good evening Chairman Sawyer, and members of the Council. I'm Representative Peterson, District 119, and I felt the due to represent my people and the people that I represent have told me that they would like to have -30 - accountability for the Water District and this is the response that I have got from my constituents. And I felt that it was only due that I report this to you. Chairman Sawyer: Thank you. Any questions of Representative Peterson? Councilor England. Councilor Bnala,dx Yeah, did you take a poll of your district? Representative Peterson: No, these are people that I come in contact with. Councilor England, It's just an informal way that you, you haven't taken any formal vote? Representative Peterson: No, I have not taken a formal vote. Chairman Sawyer: Thank You. Thank You. Chairman Sawvsr% Anyone also that hasn't spoken yet? Brian Ames: My name is Brian Ames. I'm a member of the Board of Trustees and I'm speaking here for myself only. I'm not authorized to speak for the entire Board in this particular statement. Basically, I'd like to bring a little bit of focus back on what we're talking about. You're being asked to support a piece of legislation that was introduced by Representative Duffy. As far as I know, this Council or the Manager did not have a part in the drafting of that bill, which is why we're here discussing it tonight. If that's not correct, I'd like to have some acknowledgement. But basically, it's a result of some perceived malfeasance or misuse of power that has been alleged to have occurred over the past few years on the part of the Trustees or their management. And I'd like to mention that all this flies in the face of history because what we see is that in fact the Bangor Nater District enjoys same of the best water, antl some of the lowest rates in the State of Raine. So it's really difficult to understand what the basic problems are here when in fact everyone admits that the management is doing a good job. There have been many statements made about the history of the Water District and why it should or should not operate under public scrutiny, but the basic fact is that very early on in American history there was found to be a need for authorities to be responsible for the management of public resources, independent from partisan politics. Rod that is precisely what we have here - a quasi -municipal board which is responsible to manage the resources of this community and do it in a good managerial responsible way. Bow does the Council get responsiveness from that group? It does it by appointing the various trustees that act for -31 - the water District. You appoint people like myself or Mr. Friedman or the other members of the Board. That's how you get responsiveness. You're not going to get it by creating another piece of legislation that introduces another layer of referenda process, or puts more burden on your shoulders to look over decisions that have been already made by people appointed by you. This legislation will not undo the previous things that have been alleged to have been wrong. I thick it needs to be recognised that many of these issues have already been addressed, and are already being discussed by the people on the Board, and probably are working their way onto a reasonable solution. And I think that all of these issues need to be kept in mind because what you're asking here to do tonight Is to support legislation that will be brought to the Legislature which will impose further regulations net have already been pointed out unnecessaryor are even by your own City Solicitor. It is not necessary to have a referendum of administrative policies and so I therefore conclude that I would suggest you do not support this legislation, but in fact move to support the alternate legislation that you have before you. Are there any question$? Chairman Sawver: Councilor Baldacci. Councilor Baldacciz Mr. Ames, you are aware of the structure of the School Committee? Brian Ames: Somewhat. Councilor Baldacci: You know that the members of the School Committee are elected. Councilor Baldacciz Do you know also that their budget is reviewed by this Council? Brian Ames• Yes. Councilor Baldacci: Do you feel that this is like, that also is an unnecessary burden for this Council? Brian Amesz Tbat's up to you to decide. Chairman Sawyer: Any other questions of Mr. Ames? I have my question for you. Do you, if we assumed that the City exports 35% of its water, do you think it's either legal or ethical to bill outside customers for 358 of the cost to the District? Brian Amesz I'm sure that if you're speaking to the past practices of the Nater District, you'll find that those are entirely legal but whether or not they're in the best interests of the long-term viewpoint of the City is another question. I think that you'll -32 - find that the Board is looking at those particular issues now and I thick you'll also find that this legislation will not help you resolve those issues. Chairman Sawver: Thank you. Anyone else from the audience that hasn't spoken yet? Okay. Second time around. Representative Duffy. Representative Duffy: Since you opened a door and allowed persons to speak twice, I wasn't surprised to see that happen and i wasn't really prepared to take a bunch of notes to rebut. But I did want to bring up a couple of comments. To Mr. Bean - I go back again to Chapter 63, Title 35-A, Subsection 6306, 6306 says that any water district incorporated chartered before January 1, 1982 is excluded from most oversight. But particular is bonds issuance of bonds and notes. Ordinarily any bond of $150,000 would besubject to public hearing. But since Bangor Water District was incorporated before 1981, they have no accountability by bonds by public, because of public law. Councilor Encland: Mr. Chair, could I raise a point of order. I think if a number of Councilors are leaving the room indicating courtesy to the speaker, then we maybe ought to take a 5 minute break . . . Representative Duffv: I'll be brief. I'll be brief and then you can make a decision. Councilor Sullivan: That was the point x was going to make. It's the first time we ve been here at a Council meeting, we haven't been provided water. Everybody's talking about water. I'm dying of thirst. I'd like to get a drink of water. Chairman Sawyer: Should have brought samples. Tell you what, Mr., Representative Duffy indicated that he'd be brief. Why don't we take a break for our own debate as soon as he finishes. Councilor Sullivan: Alright. Thank you. ReDreeantative Duffy: Okay. To that extent that there's n requirement for them to be accounted for. It's amazingtome to know that the facts and figures are that, I know when we met in February or I guess I've lost track of time, last November, whenever we met, I guess December, time goes by fast - the, Mr. Caldwell told us that if we had to pay for the whole district it'd be about an 88 increase. I think if we remember that because it was brought up quite a few times. Now it's increased to 12 1/29. This is one of the problems I have with the Bangor Water District by the way, we get different numbers per week out of them. It was interesting to note in the letter sent to you Chairman Sawyer that they do admit now that it'd probably be $39 million -33 - dollars to install a filtration plant that they kept telling me and telling everybody else it was $12 to $14 million. And in the notes of the minutes of the Bangor Water District, Mr. Caldwell said months ago that it could be $40 million dollars for a new filtration plant. And yet his figures keep coming out $12 to $15 million. And I can document what he said in the Minutes to his own Board. And I can document in the Minutes he said to his own Board that there are members of the Board that didn't agree with only 158 revenues from outside the district, but the answer to the Board at that time was something's better than nothing. The question, the other question I have here, we're talking about the wise use of the resource. It is not unlimited. You can't go around contracting 4 million gallons a day out of an 8 million gallon day resource without breaking the back of the people paying for it. And it's going to happen. And if you double and triple up those costa, you get into a pricing situation and I believe that the Bangor Water District wants to operate in a crisis situation so therefore we have no other decision. That crisis is not coming for the next year or two. That crisis is down the road about 4 am 5 years from now. I would rather not operate in a crisis situation. I think if we understand how government works and bureaucracies work, they bring you to the point and sometimes they tell you you can't do what you've got to do with the crisis. And sometimes you get away with being able to get through because it is a crisis. But if we operate at the rink of crisis we have no choice. And that's why I brought the bill today for accountability and your accountability. Not because this decision's going to be made this year or next year, but because if we have the scrutiny that decision will be made in a reasonable time before it becomes critical. And it's a shell game right. You lower rates and everybody also on the water. But how much are we paying in taxes? As you've asked Chairman Sawyer, I. asked the same thing. Are we being getting double-whammied, 208 over here and I believe that they increased, I don't know what the increase for the water, I know we're paying close to $380 some odd thousand for fire protection. I don't know what that increase is but I would guess it's close to 208. So if they increase the water outside the district 29, they increase the water to the rate payer 22 and they increase the taxes on the water, or the fire rate 228, now wait a minute. Doesn't that add up to same 40 odd percent that the Bangor, if you happen to be a Bangor rate payer and a Bangor taxpayer, aren't you paying 40 some odd percent? And everybody outside the district's paying 297 It's a shell game. It's shell game. Take the Water District's money if they spread it out all over, take the rate and say they spread it over the rate payer, then are we going to be one of the few lowest rate payers in the area? I doubt 1t. -34 - you know, ft's just operating, public accountability's brought us to this. You can shuffle numbers. You can come up and say well whatever we've done before we can't do anything about, so let's just keep right on going in the same direction. We don't need this accountability. If we've made mistakes in the past, we'll fix them in the future. You know. I've loaned your car out. I filled it up with gas. You run it 40% of the time. You bring it back empty and I say hey, go take the car again. That's what, you know, that 'a basic stuff. And i an through Mr. Chairman. Chairman Sawver: Any council questions of Representative Duffy] Then I will rule a 30 minute recess. Councilor Sullivan: Thank you. Chairman Sawyer: Frankly I'm not so sure there's much from the audience that we haven't heard. Doss anyone have a dire need? Well, everyone, everybody who has raised their hand at the moment has spoken at least twice. net I'd like to do is to refer the Council for debate and if they have any question, certainly they'll feel free to ask. Councilor England. Councilor England: Yeah, Fir. Chairman, so that we might consider both of the Resolutions, I'm going to move at this time to amend by substitution, and substituting for 98-61 the one that's been passed out that doesn't, that isn't neutered, that begins Resolve Opposing the Provisions of M 2189. Chairman Sewer: One issue at a time. Is there a second to the move to amend? Councilor Cohen: I'll second it. Chairman Sawyer: It's moved and seconded. onded. I'll look to the Solicitor. In your mind do we have an A and a E to choose one, or what we have is an amended motion and we need to debate the amendment? Robert Miller: well, I'm not sure I understand your question. You can. This is a motion to amend. You can debate the amendment. Chairman Sawyer: Why would I --- : Alright. Chairman Sawyer: Councilor Soenaud. Councilor Sasnud: I guess I need same direction from Councilor England what he's hoping to accomplish here. If, the item that he's hoping to substitute is as of this point simply a piece of paper on our desk. That's my understanding. It hasn't been in any way introduced as a motion for this body. If we, I think if we -35 - vote down or vote up the matter before us, we have in sense the Council's feeling on this issue. I'm not a , perhaps he can enlighten me as to what he's attempting to accomplish. Councilor England: I thick my reasoning for doing this was that, so that if for instance 9D-61 is voted down, then we don't have anything. If we take this as an amendment and for instance, if it were to pass, then the Resolution would pass in a changed form. If it were to fail, we would go ahead and vote on 90-61 as printed and as presented. and so we would get through. It's really as much as anything as a way to handle both of them so that the Council has an opportunity to vote on the one that it chooses. Chairman Sawyer: I guess the Chair would observe that we literally have 3 choices. Due, we approve the amendment gets to, would be against the proposed legislation. If the amendment fails and we vote in favor of the original document, then we then support Council, Representative Duffy, and possibly neither the amendment nor the original order would receive passage, in which case we maintain a status quo. The Council would have taken no stance. Whether you agree -- Councilor.Sosnaud: Are we -- Chairman Sawyer: Councilor Scanned. Councilor Sosnaud: I guess, maybe a question for the City Solicitor. what Is our legal requirement here? Are we required to vote one way or the other on this? If we fail to, if we fail to endorse this LD, does that mean then that that Resolve gets transmitted to the Legislature? What's the procedure? Robert Miller: The item before you is a Resolve in favor of this proposed bill. If you pass it, somebody may choose, if you pass it then I assume that somebody will communicate that decision to the Legislature. If you fail to pass it, I assume that will be communicated by somebody to the Legislature. I don't think on its face that it does, that it directs anybody to do anything as far as who c cates your action is concerned, but it's an item that obviously the sponsors felt affected the citizens of Bangor and they were asking the Council to take a position on the issue. Councilor Sosnauds I thought there was some, isn't there, my understanding Representative Duffy, is that there is a legal requirement that this Council indicate its position for or against a measure of this kind. Chairman Savverz while he's looking it up I think Mr. Barrett has a comment. Edward Barrett: I think I can answer that question. It appears from what Representative Duffy said earlier that the Council, that in regard to the Bangor Water District we would not have to -36 - communicate it because it was created before 1902. Councilor Sosnaud: Okay. Edward Barrett: So I think you realistically do have three choices. You can, probably 4 or 5 wecan cup with. You could support the legislation. You could oppose the legislation. You could simply not take a position on the legislation. Or you could come up with some combination thereof on Section A and Section, cause there are two sections to the proposal. You could support onepart of it and oppose another part of it. So I think you have a variety of choices before you. I don't think based on what Representative Duffy read of the law today that you are required to. Even if you were required to comment, your comment could be no comment. I suspect. Chairman Sewer: Councilor Baldacci. Councilor Baldaccl: I guess it's, and maybe the City Solicitor can help me out on this, I, would not a negative vote on 90-61 as it stands n would that have a negative vote, would that negative Implications or no implications? Chairman Sawver: Mr. Miller? Robert Millerz This is a proposed resolve. It's a piece of legislation that's been presented to the Legislature. You can choose to take a position in favor of it. You can choose to take an affirmative position opposing it. You can choose to take no position at all on it. And that's, your vote reflects that. How the Legislature interprets your vote on any of theme issues, you'll have to ask the Legislature. There's no, to my knowledge, there's no legal requirement you take a position on this one way or the other. Chairman Sawyer: again, i guess the Chair's interpretation is if the amendment passes, that's the end of the conversation. We would oppose Representative Duffy's bill. If the amendment fails and we pass the original order, then we would formally support Representative Duffy's bill and if the original order fails then we would have officially taken no stance. Councilor England? Councilor England: I was just going to refer back, it's a waste of time. I don't want to go back. Chairman Sawver: Okay. Then the amendment before us, and I would encourage you to speak to the amendment to the degree that you can, is in, my understanding is it is in opposition to Representative Duffy's bill. I look to the Clerk to help keep me honest on my vernacular. Yeah, well, down everyone have a copy of what is the amended version. Does the Council have a copy of the amended version, which opposes Representative Duffy's bill? If you have a -37 - copy, Would you like to debate it as a Council? Councilor Sullivan. Councilor Sullivan: Mr. Chairman, just again a point of Information. The Resolve that we have here that was sitting on the table when we came out here tonight is a Resolve opposing the provisions of LD 2189. The original one was supporting ID 2189. And the amendment is to, by substitution, right? Substituting the one opposing for the one supporting. Is that all we're doing? Chairman Sawverz Correct. And if, it's my understanding, parliamentarily that ifwe vote in the affirmative on the amendment we are opposing the bill. . That's what I said. Chairman Sawverz I really wish, I wish I could think of a way to make this a little more clearer cause that would be debating the bill not the, not the vote. That would be the amended, correct, that would require 2 votes. But if the amendment passes, I can't imagine anything but an approved amended motion. Yeah. It's clear to me. Maybe I'll make the rules and take my ball with me, but the discussion that we should be having right now --- Councilor Earl: is on the amendment. Chairman Sawver: -- is whether or not to oppose LD 2189. Councilor Becloud: No. Chairman Sawyer: Which is the amended. Councilor Sullivan: To amend. Councilor Scanaud: I think the discussion we should be having, Mr. Chair, is whether or not we should be substituting by amendment. Whether we want to go that route. I think we've been having that discussion. Chairman Sewer: Well frankly, we could spend all night ever the parliamentary rules. What we're trying to do is, are we here to oppose thebill, support the bill or take no stance. I don't care how you call it. I believe what we have before us is a formula by amending the original document that you proposed, your bill, your resolve was to support the bill. Councilor England has submitted, and duly seconded, an amendment that would call for the opposition of the bill. My opinion, if we vote in the affirmative on the amendment then we have an amended main motion which then I suspect we would vote to approve in its amended form which would be to oppose the bill. MO Councilor Saxl: what parliamentary question? Chairman Sawver: Councilor Saxl. Councilor Saxl: My parliamentary question is that if we decided that we didn't want to take any action, how would we accomplish that? Chairman Sawyer: vote no 3 times. Correct. vote no twice. You wouldn't amend it and we wouldn't pass it. Chairmen Sawver: Vote no on the amendment, vote no on the main motion, than we would take no stance at all. Councilor Cohen. Councilor Cohen: --- Chairman Sawyer: Can we, should we invite Sohn Martin down. He does this real well Councilor Cohen: I think I'm now. i was going to say I'm confused but i think I'm not confused any more. Let me speak to the amendment for just one second so that wean get this thing going. In giving some thought over, you know, the weekend and hearing the thoughts of the people that I've, that have come tonight. Md I thick that we'vespent a great deal of time in our recent retreat and in the Economic Development Advisory Committee and the Community and Economic Development Committee, talking about the sed for Bangor to be a regional resource. And everyone of the members of this Council at some point in time have talked about our need to be a leader in the region. 'we've talked about it in regard to solid waste. We've talked about it in terms of purchasing and Penobscot valley Council of Governments and so on. In 1999, we've made a priority i believe Ed, I don't remember which number it was, but one of our priorities was to work with the other communities around us for cooperative arrangements, the tax sharing and some of those other issues, not particularly water but a of those other Issues. and I guess I an going to interpret Representative Duffy's bill in my own way that it's a signal that we're not so sure that we want to be in that regional role. The arguments brought forth by Representative Duffy and other members of the audience are goad ones, but I don't believe we need to have this bill put in place in order to force other communities around us to pay more. I think that's something that we can do when we appoint people. I think that's a clear message we can send to the Water District. And I think we need to be a consistent and constant reminder of the region and its leadership, and I guess I would have to say that I would be opposed to Representative Duffy's bill. Chairman Sawyer: Councilor Saxl. -39 - Councilor Saxix Yee. I likewise have given some thought to this, of the last while and I agree with you in thinking, in wanting to promote Bangor's regional efforts in there, in many ways. But as I think about this, I don't see any provision that's in this legislation which speaks to regionalization, pro or con. To me this bill speaks simply about giving the Council some oversight provision over the Water District in their decisions. The District and the Council have talked over the last two years about developing a closer relationship and sharing of information. In fact, we've moved along that track in order to, in terms of having some meetings. But that has not been institutionalized at all and really is a matter of the personalities of the people who are currently involved on the Council and the water District. The portion of the bill that really concerned me was the referenda portion because it seemed to me that the provision of 54 of the citizens Would lead to bills which Representative Duffy termed ••frivolous" and he has assured me that he Would follow the referendum procedures that are established in the City of Bangor. So if I'm in favor of institutionalizing a closer relationship between the Water District and I no longer have to worry about the provision for the referendum, i see no reason to oppose this and don't think that it at all affects the regional nature of our relationship in terms of water, in terms of tax sharing. Ithink that those are extraneous issues and in some ways cloud the debate that was here tonight. Chairman Sewers Councilor Sullivan. Councilor Sullivan: Yes Mr. Chairman. I've been listening and reading and mulling and so forth the whole gamut, and a couple of comments that Were made tonight. i think all of us have at least sat at the meetings with the Water District. We've heard this. We all received tons of communications from various sources and in many cases duplicates and triplicates of some things that we already had, but the paint is that in regard to the tax axempt property, I really don't see it a smoke screen. It is something that when the real property tax relief questions were raised here n this Council Chambers by the Commission on Property Tax Relief and Property Tax Reform, they looked at all aspects of property tax relief. And one of those was the problem that Bangor faces of the tax exempt property, the approximately 504, and the question was raised. And we had some Representatives on the Commission who were officers in those tax exempt properties. The question sea raised what can we do. We can't do anything right now. We're not, we do not have the authority to do anything. However, what we are looking for and wenow have are tax exempt property steering committee and again there is representation from the tax exempt properties. We're looking for some kind of cooperation and in listening and talking to them, they recognize our problems and we have to recognize theirs. They have to realize that the property tax cannot support the City much longer at the rate we're going. -40 - They also know that they contribute a great deal to our economy, and that's a point they make and one that we recognise. However, one of the things that we recognise and this again was through Mr. Barrett, the City Manager, from the very beginning, I think from almost day one when he arrived in the City of Bangor. One of the things he talked about was being able to get some kind of, maybe fee, in lieu of taxes, some kind of payments from the -- (tape change) Tape 43, Side A was the hydrant costs, fire protection costa and that is what is being looked at right now. So far as the Airport, yes, the Airport is about i guess 40% of 50% of the tax exempt property. But we already have taken measures, and we are getting more from the Airport for the citizens. So these are some of the things that we are addressing and I'm not saying that we're close to solution, but at least we're looking at them. The other issue that was raised was the problem if we call it, if we want to call it a problem and I did see it as a problem, the Door communications between the water District and the citizens at large. That came to a head at the time of the backflow problem. And i think you'll have to recognize that the City Council jumped at that one, and the communication was very strong going towards the Water District. Then we had a meeting. We had an explanation. We encouraged the water District to make sure they got their ms sage out, their explanation, that they met with people in the City.And since that time, I know myself and other Councilors have indicated to me that they feel that there has been a great deal of improvement so far as the communications between the Water District and the City Council. When we ask questions we get answers. me When we ask to et with them, we have a meeting with them. They have been responsive to us. Now, we do have the only ability I guess to have any control, if you want to call it control, in what do we call them, quotations, that we do appoint members to the Commission. And in that way we can certainly make sure that those linea of communication are continued to improve. Now my concern is that sending a message to communities outside us, outside the City of Bangor, that okay, guys, we've been giving you this water, not giving it to you, but we've been supplying you and now we're going to be much more careful about anybody else that we let in. And when we're talking development we're talking about region, regional, cooperation. When we start talking about if there's any possibility of cost sharing or tax sharing, we looking to those same communities. We're not looking to Augusta. We're not looking to anyone away from Bangor. We're talking about those neighbors that we are dealing with in the water issue. I'd -91 - like to make aura that we don't send a message out that says we going to get heavy-handed, but on the other hand, when it's going to be a matter of a huge investment, huge expense in the future, I'd like those communities to know that we are concerned and we want to make sure they are concerned with the additional costs. And I think they're going to get this message. I think they already have the message from u So in that sense, I don't think that we have to really institutionalize the relationship between the Water District and the City any further at this point. We can look at it again in the future if we find that it isn't working or continuing in the way it is going right now. So I will be supporting the amendment. Thank you. Chairman Sawyer, Councilor Blanchette. Councilor Blanchette, Yes, Chairman Sawyer. I'm really concerned with this amendment for a number of reasons. I'm looking down through this and it said the Water District is currently regulated by the Public Utilities Commission. The Public Utilities Commission has very blatantly and plainly stated that they are not going to get involved in local politica. They set the rates the water rates. But if we have a disagreement, if the Water District Trustees decide that they in fact want to contract water to another town, they're not going to step in and say that they can't do that. I heard the question asked by Chairman Sawyer twice tonight that if 358 of the water is going out of the City of Bangor, are in fact the inhabitants of the outlying towns that are receiving 35% paying their full cost. I've heard a lot of evasive answers, but I haven't heard a direct answer to Chairman Sawyer's question as, year they are paying that cost, what it coat them to go out. I thick we do, we do have the privilege of appointing the Trustees at the Bangor water District, but that's as far as it goes. Shortly after I was seated on the Council two years ago, we had a meeting with the Bangor Water District. Big hurry meeting. we have problems. We are going to run out of water. We're going to have to look at alternative sources of water. We're talking about Beech Hill, someplace where we've got to go through miles and miles and miles of ledge. This is going to coat a lot of money. Then shortly after, I guess a year had gone by, we came back. Well they had the wrong figures. They were using the wrong graphs. I'm net at all sure that the communication is there, even though we appoint the Trustees. I think it is a safeguard measure for the citizens of Bangor. I have a problem with the philosophy of the majority of this Council to regionalize every dam thing in this City. We have a city that we can't take care of as it stands in 1990 because w don't have the money. Now what makes you think that these little bitty dinky towns that are around us are going to be able to give _¢2_ us enough money, not only to maintain our city the way it should be, but to help maintain theirs? It's not going to happen. We have a city that's in dire need of repair the way it stands right I defy any one of you to go out here and drive on the road and not fall into a pothole. Tell me we don't have problems. We do have problems. And spreading our expense all over the area is not going to help us solve our problems. We have a beautiful city. Let's focus on taking care of Bangor. Bangor taxpayers. I don't want ten years from now us to have to say to our c£tizes, well we're in that position again. We're running ing out of water because we've had too many industries come in and we're going to have to go to Beech Hill, or some other place ten miles down the road through solid ledge. We have enough water to support our citizens up through a good many years in the year 2000. Leta retain that control. A little bit of control oversight over the Trustees is not going to hurt them or hinder their operation. I don't believe. And everyone on this Council knows that I a r opposed toe controversial item going out to the public. We've spending the public's money. We're only trustees of the public's money. If it's a large bond issue that has to go out, ask the people, do they want it. Do Iwant to go to Glenburn? Do i want to supply water to Hampden? Ask them. It's their tax dollars that are paying it and we re only the guardians of that money. Thank YOU. Chairman Sawver: Councilor Sosnaud. Councilor Sosnaud: Yes. Hr. Chair. Let me just make very clear what I think this Resolve and this bill before us is not. it is not an examination of the District's past policies on pricing for waterservice. it is not any kind of judgment on past management decisions by the District or current ability to manage our water needs. It's not in my view an endorsement for or against regionalism. Rather what I think it is very shortly and sweetly is simply whether there should be a new avenue of accountability for an appointed, or and I need to say this very strongly, or a non -elected body. And I believe if you break down the bill before us, if you look at the two aspects of it. First of all, the Council approval aspect of the bill. I think we have many instances where we have semi-automonous Council bodies. I'm thinking of the Planning Board now, which has a number of its decisions which comes before the Council for review. The Housing Authority, another semi-automonous body that just a few months ago was before us for approval as to their desire to begin construction of 25 new units and also earlier referred to - the School Committee - an elected body which still has to have its bottom line budget approved by this group. So we have precedent for semi -autonomous bodies, to having certain aspects of their business come before this Council. I believe that the kinds of matters that would come before the Council are not the everyday business of the Water District, but simply what the bill specifically mentions, namely contracts to sell water to areae outside of Bangor, which is a -43 - major, major issue that I'm not troubled by having the Council with a review power over that kind of decision. The second aspect of the bill, the referendum aspect, When we're talking about a body with the kind of financial control that the Water District does, I have no problems with a referendum on those decisions, especially when I'm informed by Representative Duffy that the referendum provisions will be the same after he's amended his bill as those which apply to decisions of the Bangor City Council. So based on what I have just said, I will support the original Resolve that I introduced which is in favor of the measure introduced by Representative Duffy. Chairman Sawyer: Councilor Stone. Councilor Stone: Thank you. I believe ft's a fine thing that the Bangor Water District has hired s public realtions firm. It's quite obvious from this evening's proceeding that you need one. A couple thoughts. First of all, I believe that the Bangor water District is making a very large error by not, you know, by Operating in avacuum and by not getting out in the trenches and finding out what the citizens and the people are really thinking about. You can't isolate yourself. That's quite obvious. You know we all learn and what is happening here tonight and perhaps you folks should do on your sem, not necessarily with the City Council, just amongst the citizens of Bangor. If a gentleman makes a point about a backhoe and why you don't use the same one that the Public Works Department uses, I think he should have an answer to his question at some point in time. So he'll know what your thoughts am. But taking all that under consideration, I still do not believe that we need another layer of management to hinder the long-term process of, the planning process, and I will vote in favor of the amendment to change this order. Thank You. Chairman Sawyer: Councilor Baldacci. Councilor Balaccio Yes. Thank you Mr. Chairman. I would just like to echo what has been said to same degree here, and I do think it is important and just a small sacrifice to ask that there be some form of public accountability in the decisions that the Water District engages in. I, whether it ie, I thick it is not valid to say that it is cumbersome and time consuming. i think it's important to realise that these decisions impact greatly on the Bangor citizen, the rate payer, the taxpayer. i think those types of decisions, to have some sort of public accountability which I do think Representative Duffy's bill does provide, is Important. We're dealing as has been said a resource that is not unlimited. There are limits to it. And once we use up those limits we are going to have to look for other resources, other water supplies. Will our expenses be shared by other comnunities) I think the Bangor rate payer in this situation has paid enough, and I'm tired -44 - of the excuse just for the Bangor rate payer to shut up and pay. I think he needs a voice in what goes on at some point with the Water District. It's been an attitude of just be quiet and pay, accept it. I. think at some point, and I do think it becomes our responsibility to take that on. We're elected by the people of the City of Bangor. We're not elected by the people of Hampden, Orono, yeasts, although I'm not saying that we shouldn't be good neighbors. But we shouldn't be good neighbors at the expense of our own citizens. I mean that's where, that's where our representation lies. And I think Representative Duffy's bill addresses those, and I would urge other Councilors to support it. Thank you. Chairman Sawyer: Councilor England Councilor Enaland: Yes. I have two. I want to address my concern about this bill. But first of all, I should like to ask the Manager a question. I think it's misrepresentation to suggest that there'S Onee primary Resolve. At the Finance Committee meeting last meek you said to us, that you would prepare several resolves representing other pointe of view. I didn't write this particular resolve. You wrote it. Edward Barrett: That's correct. I wrote --- Councilor England: There isn't one resolve that is the resolve of the Finance Committee and the other is not. They were both, you said to us that you Would supply us with at least two positions. Edward Barrett: That's correct. Councilor England: And that's all we have here tonight. I'm sorry that the one that doesn't have anything written on it was not mailed out at the same time --- Edward Barrett: It was intended to. There was an oversight --- Councilor England: --- Finance Committe as far as I understand it was not to take apposition on this. It was to give the Council the opportunity to take one position g re another. So there's nosense in what this is particularly written by me, this was prepared by the Finance Committee through the Manager so that we would have this opportunity. i just wanted that to be very clear, that that's the way the Finance Committee decided last week at its meeting. I guess I would want to say, I think I agree with Councilor Saxl. I don't come down to the final conclusion that she does but I do agree that the issues are two. The issues are one, whether or not there is sufficient oversight of the Water District, and whether or not there is a sufficient way to review their day-to-day decisions and it seems to me in the first case, we haveanopportunity as we select members of the Board of Trustees of the Water District to exercise our oversight. And secondly, it seems to me their declaims are being reviewed by a number of regulatory agencies on -45- a regular basis. And therefore I will support the amendment to the motion. Chairman. Suavest If there's no more debate by the Council, I'll ask the Clerk to call the roll. By the say, it's my interpretation of this vote, is that if you vote yes on the amendment, this Council would take an opposing position with the bill. If you vote no n the amendment, then we'll debate the main motion. Please. We are now voting on the amendment. Clerk McKenna: Councilor Baldacci. Councilor Baldaccl: Just to be clear. I vote no opposing, on the amendment, opposing Representative Duffy's bill. Clerk McKenna: Blanchette. Councilor Blanchette: No. Clerk McKenna: Cohen. Councilor Cohen: Yes. Clerk McKenna: England. Councilor Bnaland: Yes. Clerk McKenna: Sawyer. Chairman Sawyer; Yes. Clerk McKenna: Saxl. Councilor Saxl: No. Clerk McKenna: Saennud. Councilor Sosnaudt No. Clerk McKenna: Stone. Councilor Stone: Yea. Clerk McKenna: Sullivan. - Councilor Sullivan: Yes. Clerk McKenna: 5 yes, 4 no. Chairman Sawyer: By a vote of 5 yes and 4 no, the Council, I'm entry, the amendment passage. Do the, any debate of now the amended ma motion? Seeing none, I'll ask the Clerk to call the roll. I'm sorry. Let Me suggest. If you vote yes, you are voting -46 - the amendment, the amended main motion. if you vote no, the Council will have taken no action. Councilor Sullivan: This was moved and seconded? Chairman Sawver: Yes. Councilor Sosnaud made the original motion. Councilor Blanchette: Run that by again please Chairman Sawyer. Chairman Sawver: My Interpretation, subject to Mr. Miller, is that if you vote yes on the amended main motion, You are --- . . . been moved and seconded. Councilor Knoland: It isn't been moved and seconded. Chairman Sawyer: Well Councilor Sosnaud made the original motion and it was seconded. Councilor England moved an amended, amendment, and that was seconded. My interpretation we now have an amended main. motion. Councilor Blanchette: Which is opposing Representative Duffy's bill? Chairman Sawyer: Correct. And my interpretation, unless there is another motion that c n the floor after this, a Yee is that You support the amended motion which opposes the bill. A no is that the Council would take no formal action. Would the Clerk please call the roll. Clerk McRenna: Councilor Sullivan. Chairman Bouvet: Would You like me to go through it again? Councilor Sullivan: I'm voting yes to the amended motion. Clerk McKenna: Stone. Councilor Stone: Yee. -Clerk McKenna, Sosnaud. Councilor Sosnaud: No. Clerk McKenna: Saml. Councilor Saxl: No. Clerk McKenna: Sawyer Chairman Sawyer: Yes. _47_ Clerk McKenna: England. Councilor England: Yea. Clerk McKenna: Cohen. Councilor Cohen: Yes. Clerk McKenna: Blanchette. Councilor Blanchette: No. Clerk McKenna: Baldacci. Councilor BaldaccL No. Clerk McKenna: 5 yes, 4 no. Chairman Sawyer, By a vote of 5 Yea and 4 no, the Council has voted the, voted the Resolve which opposes provisions of LD 2189. Let me ask, before the Council gets too antay, we had two other items to talk about. . . February 6, 1990 TO: Russell McKenna, City Clerk FROM: Terri Corey, Legal Department RE: Council Resolve #90-61 - Mater District At Councilor Baldacci's request, I have prepared a verbatim transcript of the special Council Meeting conducted an January 29, 1990 regarding the above -indicated matter. Enclosed for your file is the original copy of the Transcript. Copies are being distributed to all members of the City Council and the City Manager. T.C. Enclosure