HomeMy WebLinkAbout2009-02-23 09-098 ORDERCOUNCIL ACTION
Item No. 09 098
Date: 2-23-09
Item/Subject: Order, Authorizing the City Manager to Execute a Cost Sharing Agreement
with the Municipalities of Old Town, Orono, Veazie, and Brewer - Bangor Gas
Company LLC Abatement Request
Responsible Department: Legal
Commentary:
Bangor Gas Company, LLC has filed for a tax abatement for FY09 requesting that their assessed
value be reduced from $7,860,700 to $277,350. Such and abatement would reduce the taxes
from $149,746.33 to $5,583.52, a reduction of $144,462.81.
Bangor Gas Company, LLC has filed a similar request for a tax abatement in the other
communities that it serves – Brewer, Veazie, Orono, Old Town, Bucksport, and Orrington. The
City Assessors of these municipalities have met and the consensus of the assessors of Brewer,
Veazie, Orono, Bangor, and Old Town was that the municipalities should share in the cost of
hiring outside counsel who has experience in defending municipal assessments of public utilities
and an expert appraiser who has experience in assessing the property value of utilities.
Bangor's share of the costs, calculated as a percentage of the original cost of Bangor Gas
Company's property within each municipality, is 46.51%.
This Order will authorize entering into a Cost Sharing Agreement with Old Town, Orono, Veazie,
and Brewer.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Department Head
Managerle*wl, i W" tew7w T -A I
City
Page _of—
nce Director
Solicitor
•
Assigned to Councilor Bronson February 23, 2009
CI'T'Y OF BANGOR
(TITLE.) Order, Authorizing the City Manager to Execute a Cost Sharing Agreement
with the Municipalities of Old Town, Orono, Veazie, and Brewer - Bangor Gas
Company LLC Abatement Request
WHEREAS, Bangor Gas Company, LLC has filed for a tax abatement for FY09; and
WHEREAS, Bangor Gas Company, LLC has filed for tax abatements in Orono, Veazie,
Old Town, and Brewer; and
WHEREAS, the reasons for the Bangor Gas Company, Ll -Cs abatement request is the
same in each municipality; and
WHEREAS, it is in the best interest of each municipality to use the services of counsel
who has expertise in defending municipal assessments of public utilities and
to use the services of appraisers who have expertise in determining the
value of public utilities; and
WHEREAS, it is in the best interest of the municipalities to pool their resources on this
abatement request;
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
the City Manager is authorized to execute a cost sharing agreement with Old Town,
Veazie, Orono, and Brewer to share the expenses of hiring the services of William H.
Dale of Jensen Baird Gardner Henry and Steve Traub of Property Valuation Advisors to
represent the municipalities on all matters related to the abatement request of Bangor
Gas Company, LLC provided that the City of Bangor's share shall not exceed 46.51% of
the total cost. The Agreement shall be in a final form as approved by the City Solicitor
or Assistant City Solicitor.
IN CITY COUNCIL
February 23, 2009
Motion Made and Seconded
for P sage
Pass
'16ITY CLERK
`# 09-098
O R D E R
(TITLE,) Authorizig the City Manager to
Execute a Cost Sharing Agreement with
the Manicipali ti eS of Old,, Tnvn t na nnn
Veazie and Brewer - Bangor Gas Company
LLC Aba m t Reque--t
Assigned to Councilor