SACO CITY COUNCIL WORKSHOP

MONDAY, MAY 2, 2016 – 6:00 PM CITY HALL AUDITORIUM

I. CALL TO ORDER II. PUBLIC COMMENT III. AGENDA

A. (Workshop III) Amendment to Saco Code: Chapter 99 – Firearms P2 B. (Workshop II) Amendments to the Purchasing Policy P3 C. Intelligent Controls, Inc. (now known as Franklin Fueling) TIF Assignment, P4

Modification, and Extension D. Saco River Dredge and Camp Ellis Update P16 E. Free Bayview Parking Lot Permit for Disabled Veterans P18 F. Options for Saco Assessment Department P19

IV. ADJOURNMENT

SACO CITY COUNCIL MEETING MONDAY, MAY 2, 2016 – 6:30 PM

CITY HALL AUDITORIUM

I. CALL TO ORDER II. RECOGNITION OF MEMBERS PRESENT III. PLEDGE OF ALLEGIANCE IV. GENERAL

Recognition of Peg Poulin, Maine Spirit of America Foundation Tribute V. PUBLIC COMMENT VI. CONSENT AGENDA

A. “Be it ordered that the City Council approve the minutes for March 28, 2016, April 4, 2016 and April 19, 2016” “I move to approve the order”

B. Application for a Solid Waste Permit – Maine Waste Solutions P24 d/b/a We Compost It!

C. Confirm the Mayor’s Appointment of Gary Marston to the P27 Coastal Water Commission

VII. AGENDA A. (Public Hearing) Fiscal Year 2017 Municipal Budget P29 B. (Public Hearing) Zoning Ordinance Amendment: Table 412-1 – I2 Zone P40 C. (Public Hearing) Special Entertainment Permit – Kerrymen Pub P42 D. (Second & Final) Amendment to Saco Code: Chapter 99 – Firearms P44 E. (Second & Final) Zoning Ordinance Amendments: Table 412-1 - MU-3 Zone P45 F. Amendments to the Purchasing Policy P46 G. (First Reading) Intelligent Controls, Inc. (now known as Franklin Fueling) TIF P51

Assignment, Modification, and Extension VIII. ADJOURNMENT

CITY OF SACO, MAINE Administration Kevin L. Sutherland, City Administrator Saco City Hall Telephone: (207) 282-4191 300 Main Street Email: KSutherland@sacomaine.gov Saco, Maine 04072-1538 Facebook: /sacomaine Twitter: @sacomaine

WORKSHOP ITEM: A AGENDA ITEM: D

Date: May 2, 2016

MEETING ITEM COMMENTARY AGENDA ITEM: (Second & Final Reading) Amendment to Saco Code,

Chapter 99 – Firearms STAFF RESOURCE: Chief Bradley Paul COUNCIL RESOURCE: Councilor David Precourt BACKGROUND: Saco is well-known for its horse farms and breeders in the Buxton Road/Louden Road areas. As equine enthusiasm continues to expand, an interest in western-style mounted cowboy shooting sports has developed as well. Enthusiasts of this activity have requested an ordinance change necessary to permit them to legally conduct competitions and demonstrations in the Shotgun Only zone. Currently this is not permissible by ordinance (Chapter 99 Firearms). The Saco City Code only permits the discharge of shotguns and muzzleloaders in the area where two of the primary horse farms with an expressed interest in mounted cowboy shooting sports are located. This sport does not involve discharging projectiles, as only blank cartridges are used. However, ordinance changes are necessary to permit the activity, as the firearms the blank cartridges are discharged from meet the federal, state, and city definitions of ‘firearm’. An additional issue the suggested changes attempt to address is to permit blank cartridges to be discharged for limited purposes (military ceremonies, theatrical purposes, etc). And finally, language/structural changes to the current ordinance were addressed as explained. City Council discussed during Workshop on March 14, 2016 and suggested revisions to Chapter 99. EXHIBITS: Exhibit items were previously provided at the March 28, 2016

Council Meeting and can be found on our website. 1. Chief Paul Memo to Council

2. City Code Chapter 99 Firearms Current Ordinance 3. City Code Chapter 99 Firearms Draft

4. City Code Chapter 149 Noise 5. City Code Zoning Ordinance Article 8 RECOMMENDATION: Staff recommends consideration of the proposed changes. FUNDING: None needed. AMENDED MOTION: “Be it ordered that the City Council hereby ordains and approve the Second and Final Reading for the amendment to the Saco Code, Chapter 99-Firearms.” “I move to approve the order”

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MEMORANDUM

TO: Mayor Michaud and City Council

FROM: Kevin Sutherland, City Administrator

DATE: April 27, 2016

RE: Amendments to the Purchasing Policy

On April 19th, City Administration presented a few potential changes to the purchasing policy. Those changes were

not satisfactory to members of council and the item was tabled until the May 2nd meeting. This memo offers another

solution to changing the purchasing policy.

What is included in the meeting agenda packet for May 2nd is the same item commentary and proposed change

provided on April 19th, as it was a tabled item. Once the item is up on the agenda, it will need a first and a second to

be taken from the table.

Once it is back on the floor, a proposed amendment to the item commentary could be:

Remove the Professional Services definition from Section C. Definitions.

Revert Section F, 7a. back to: “To any specific case determined by the City Administrator or Person with Authority to be an emergency; in such cases the City Administrator or Person with Authority may make such immediate purchases that he/she determines are in the best interest of the City, and are of good value for the City, considering the nature of the circumstances.”

Include an h. to section F, 7:

“to other services that the City Administrator or Person with Authority deems of good value or in the best interest of the city, and council has given approval.”

With these amendments, and council’s approval of Agenda item G, the city: can move forward with its 3 year extension of the contract in place; save real dollars that would otherwise have been lost if we were to go to bid; and, will comply with its purchasing policy.

CITY OF SACO, MAINE Administration Kevin Sutherland, City Administrator Saco City Hall Telephone: (207) 282-4191 300 Main Street Email: KSutherland@sacomaine.gov Saco, Maine 04072-1538 Facebook: /sacomaine Twitter: @sacomaine

WORKSHOP ITEM: B Date: May 2, 2016

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WORKSHOP ITEM: C

AGENDA ITEM: G DATE: May 2, 2016

MEETING ITEM COMMENTARY

AGENDA ITEM: (First Reading) Intelligent Controls, Inc. (now known as Franklin Fueling) TIF Assignment, Amendment Modification, and Extension

STAFF RESOURCE: William J. Mann, Economic Development Director

COUNCIL RESOURCE: Councilor Alan Minthorn

BACKGROUND: In 2008 a TIF was created for the above referenced firm on the commercial real estate locate at 34

Spring Hill Road. A couple of years ago as part of a corporate restructure the manufacturing that was done at this location

was consolidated out of state. Franklin has 20+ individuals, mostly engineers who remain working at this facility. These

employees would like to stay; however, given that 2/3rds of the building is vacant, the parent company put the building up

for sale with the intent of relocating the engineering team to smaller space locally. A local manufacturer, Maine Textiles

International, Inc. d/b/a Saco River Dyehouse with 15+ employees is in need of manufacturing space to house new

production equipment and was looking to relocate. A deal has been struck with an investor buyer White Rabbit LLC,

which is owned by Kevin Bunker, Manager and Traverse Fournier, Member, that will lease a portion of building back to

Franklin Fueling - 11k sq. ft. of offices for its engineering staff and the remaining 23k sq. ft. of manufacturing space will be

leased back to Maine Textiles International, Inc. d/b/a Saco River Dyehouse. Maine Textiles will have a first right of

refusal option to purchase the building.

The prospective purchaser has asked that the TIF be amended to extend it for 10 years. They have indicated that there is

approximately $250,000 in fit-up, equipment set-up, and office build out as well as electrical infrastructure upgrades needed

to accommodate Maine Textiles.

City Staff is proposing a modified change to the TIF, which will need both Council and State of Maine approval, this

change accommodates the request of the purchaser, protects the existing jobs, moves Maine Textiles into this space, and

provided greater flexibility for the City in using its share of the TIF Revenue Stream (see attached sheet Summary of TIF

Modifications Proposed).

The purchaser has requested that the City approval be expedited as they need to close in early June (currently planned for

June 2nd). This closing date is necessary so Saco River Dyehouse can accept deliver of significant equipment being shipped

from Italy which is planning on arriving the following week (the week of June 6th) here in Maine. Accordingly, we are

asking that the initial workshop and first reading be done on May 2nd. To be followed by a Public hearing on May 16th and

second workshop/2nd and final reading on May 23rd.

HISTORY: City Council Approved TIF in 2007

EXHIBITS: 1. Summary of TIF Modifications Proposed 2. City of Saco TIF Guidelines 3. Tax Increment Financing Overview 4. Draft TIF Amendment being drafted by City’s TIF Counsel (not currently part of packet -

will be forwarded as soon as it is available).

STAFF RECCOMENDATION: Staff recommends approval.

SUGGESTED MOTION: “Be it ordered that the City Council does hereby ordain and approve the First Reading of the requested Assignment and Assumption of Credit Enhancement Agreement between the City of Saco and Intelligent Controls, Inc. (now known as Franklin Fueling) to White Rabbit, LLC, provided that White Rabbit, LLC accepts the modified terms as set forth in the Amended Credit Enhancement Agreement and is subject to final approval by the State of Maine Department of Economic and Community Development.”

“I move to approve the Order”

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Summary of TIF Modifications Proposed

The Current TIF (Intelligent Controls, Inc. (now known as Franklin Fueling)):

45% Credit Enhancement (CE) to Franklin/ 55% to City for Economic Development

Approved in 2008 runs out in FY ’18 (two years to go)

White Rabbit LLC the Prospective Buyer has requested an Assignment and Extension of the TIF for

10 years.

City Staff recommends the following:

Seek State of Maine (DECD) approval for Assignment/Modification of Credit

Enhancement (CE) to allow FY ’17 to go as originally set forth with new property owner

with a 45% /55% split between property owner and City,

Add the following job retention/creation/benefits criteria

o 23 Franklin retained

o 15 Maine Textiles new to Saco ( not sure of mix retained /new)

o 38 Total Employees

o Include a provision that requires tenant business to offer a general benefits plan

and including a health care plan offered to all full-time employees (they do not

necessarily need to have employer contribution) if they want City funds they

should at least offer a health care option to employees?

o Include minimum wage level of $12.00 per hour and average salary level in

accordance with city TIF Guidelines,

Extend the term of the TIF for the maximum possible term thru FY ’38.

Cap CE payments after 07/01/16 at $125,000 to Property owner.

TIF revenue share after FY ‘18 modified to 30%* Credit Enhancement (CE) to White

Rabbit that would be assignable to Maine Textiles International, Inc. d/b/a Saco River

Dyehouse – who has a first refusal option to purchase the property)/70% to City of

Saco for Economic Development.

Should the combined building Full time employment of the two tenants drop:

o below 35 FTE’s as determined based upon submission of copies of year end

payroll summary information and company certification in form acceptable to

the City of Saco, the TIF revenue share rate would be modified to 25% Credit

Enhancement (CE) to White Rabbit that would be assignable to Maine Textiles

WORKSHOP ITEM: C AGENDA ITEM: G

Date: May 2, 2016 Exhibit Item: 1

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International, Inc. d/b/a Saco River Dyehouse – who has a first refusal option

to purchase the property)/75% to City of Saco for Economic Development.

o below 29 FTE’s as determined based upon submission of copies of year end

payroll summary information and company certification in form acceptable to

the City of Saco, the TIF revenue share rate would be modified to 20% Credit

Enhancement (CE) to White Rabbit that would be assignable to Maine Textiles

International, Inc. d/b/a Saco River Dyehouse – who has a first refusal option

to purchase the property)/80% to City of Saco for Economic Development.

o below 19 FTE’s as determined based upon submission of copies of year end

payroll summary information and company certification in form acceptable to

the City of Saco, the TIF revenue share rate would be modified to 0% Credit

Enhancement (CE) to White Rabbit that would be assignable to Maine Textiles

International, Inc. d/b/a Saco River Dyehouse – who has a first refusal option

to purchase the property)/100% to City of Saco for Economic Development.

o Share rate to be tested annually.

WORKSHOP ITEM: C AGENDA ITEM: G

Date: May 2, 2016 Exhibit Item: 1

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City of Saco, Maine Tax Increment Financing Guidelines

Adopted by the City Council, 6/16/97 (Readopted w/out amendment 8/1/05) I. Introduction

Tax Increment Financing is one of the few techniques authorized under state law to promote economic development by cities and towns. TIFs should be used for projects which would not occur otherwise, which provide good, new jobs, which make substantial increases in the City's tax base, and which are in keeping with the quality and types of development sought by the City, as outlined in the Zoning Ordinance, the Comprehensive Plan and in other city policies developed by the City Council. Because of the potential of TIF agreements to defer potential gains in general fund revenues, they should be entered into cautiously by the City. The purpose of these guidelines is to outline standards that will be used by the City Staff, the Economic Development Commission and the City Council with respect to the City's involvement in TIF agreements.

Notwithstanding these guidelines, the creation of a TIF District is a policy decision of the Saco City Council made on a case by case basis. The Council may override these guidelines if it determines that a project merits such treatment. A TIF is not a right under Maine law and these guidelines do not create a right or entitlement for any application, nor should they be interpreted to encourage any application. II. Eligibility

1. Uses Applicants are limited to manufacturing, assembly operations, warehousing and distribution, research and development, and major office, major tourism facilities such as major hotels, major amusement parks, and major urban redevelopment projects. Retail uses are generally ineligible except in major mixed use redevelopment project and in extraordinary circumstances approved by the City Council.

2. Jobs Applicant shall create at least 15 new full time jobs meeting the guidelines herein within three years of TIF approval.

3 Investment Proposed investment (new taxable value) must achieve at least $750,000 within three years of the approval of the TIF.

4. Quality of Employment a. Wages The average hourly wage for new jobs to be created or relocated must be at a rate

at least 50 percent greater than the federal minimum wage anticipated during the first three years of the agreement.

b. Benefits A competitive benefits package, including as many as possible of the following: paid holidays, vacations and sick leave, and employee health benefits with a substantial employer contribution.

5. Environmental Standards The applicant shall ensure that high environmental standards are met and that all state, federal and local environmental standards are met.

III. Basic Provisions

1. Enhancement Agreements - Tax Increment Financing Districts are generally approved only for credit enhancement agreements. 2. Documentation - The applicant is required to submit all report and documentation so that the City an determine if the standards herein are met and to protect the City's financial interests. 3. Terms - The specific terms of each TIF agreement are negotiated between the City and the applicant, but in no case shall the tax recapture for the applicant exceed the limits prescribed below:

Term of TIF Maximum Recapture to Applicant 1 - 5 years 50 percent 6 - 10 years 40 percent

Agreements may be structured so that additional recaptured amounts and amounts recaptured for longer periods are used by the City for purposes permitted by Maine law, not for the applicant. 4. Costs and Fees - All applicants shall pay for the City's legal fees and any other out-of-pocket costs associated with the development and approval of a TIF agreement, regardless of whether it is

WORKSHOP ITEM: C AGENDA ITEM: G

Date: May 2, 2016 Exhibit Item: 2

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approved. TIF agreements shall provide for a 1 percent annual administrative fee to be deducted from the tax recapture forwarded to the applicant during the life of the agreement. 5. Performance Reporting - The TIF agreement shall provide for the applicant to submit reports and documentation in a form satisfactory to the City supporting any costs to be reimbursed by the TIF and in order to assess the applicant's performance with regard to compliance standards outlined in "Eligibility" above, including investment, jobs, wages, benefits, and environmental standards. 6. Suspension and Recapture of Benefits - The TIF agreements shall contain provisions for the suspension, termination and/or recapture of benefits to the applicant if the applicant does not meet compliance standards outlined in "Eligibility" above, including investment, jobs, wages, benefits, and environmental standards. The agreements shall also provide for the termination and/or recapture of benefits to the applicant if the applicant relocates all or a substantial portion, to be determined at the time of agreement, of the Saco operation outside the City during the term of the agreement or within five years after its end.

IV. Guidelines For All Applicants

In all instances, applicants requesting tax increment financing must demonstrate: 1. The City's participation is economically necessary and involvement by the City is needed in

order for the project to be undertaken. Justification for economic need and City involvement must be demonstrated by: a. A need to offset infrastructure costs unique to the site; or

b. A need to offset economic advantages available to the corporate entity if it should build (or expand) outside of Saco; or

c. The unavailability of sufficient private or other public funding sources to meet the full capital investment needs of the corporate entity seeking assistance.

2. The project creates significant new tax value equal to or greater than $750,000 and creates at least 15 new full time jobs meeting the standards of these guidelines.

3. Financial capacity to undertake the project must be demonstrated by means such as commitment letters. If commitments await approval, a letter of "intent to fund" from a reputable bank or other financial entity not associated with the project indicating the uses and amounts of funds. The most recent audit of the company shall be provided. If self-financing is planned, evidence of the availability of funds, such as bank statements, shall be submitted.

4. Compliance with all statutory and regulatory guidelines of the City and state. V. Guidelines to Determine Level of City Participation.

Although an applicant need not meet each of the following criteria, they will be used to determine the level of participation by the City: 1. The project assists an established business in the City of Saco, thus assisting in expanding

and retaining existing employment; 2. The project creates significant long-term, permanent employment; 3. The project improves a blighted area or building in need of redevelopment or rehabilitated, or

an area identified as a priority by the City of Saco; 4. The project creates public infrastructure facilities which have application beyond the

particular development such as traffic upgrades, sewer upgrades, public parking facilities, etc; 5. The project broadens the tax base of the City.

VI. Standard Operating Procedures

The City's Director of Economic Planning and Development Programs will coordinate all City activity regarding tax increment financing proposals, by providing information on tax increment financing; discussing project proposals and accepting preliminary applications from applicants; reviewing preliminary applications based on policy guidelines with city staff, attorneys and Bond Counsel; coordinating consideration by the Economic Development Commission, and, if approved by the City Council, submitting application to the State.

WORKSHOP ITEM: C AGENDA ITEM: G

Date: May 2, 2016 Exhibit Item: 2

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TEN FREE STREET

P.O. BOX 4510

PORTLAND, MAINE 04112-4510

www.jbgh.com

Ronald A. Epstein (207) 775-7271 (Phone)

e-mail: repstein@jbgh.com (207) 775-7935 (Fax)

~ Over 60 Years of Service ~

Tax Increment Financing Overview

Maine law governs the creation of tax increment financing districts and related development

programs. This outline is intended to provide an overview of various considerations and matters relating

to tax increment financing districts.

I. Possible Reasons to Consider TIFs

A. New Tax Dollars for the Town. Provide incentive or infrastructure to create new

development and expand and diversify the tax base.

B. Economic Development; New Jobs. Create new jobs.

C. Public Facilities, Improvements and Programs. Finance new Public Facilities,

Improvements and Programs, as described below.

D. Benefits from Shelter of Growth in Assessed Value. Shelter increased assessed value for

purposes of the State aid to education, State revenue sharing and County tax formulas. Without a TIF,

most Towns lose approximately 40% to 60% of every new tax dollar resulting from increased assessed

value due to the way in which State aid to education, State revenue sharing and County tax formulas are

structured. One of the few development incentives provided by the State to municipalities.

E. Credit Enhancement Agreements. Some TIFs involve Credit Enhancement Agreements,

which provide an incentive to a developer to develop property by sharing the tax increment with the

developer.

II. What is a “TIF” or Tax Increment Financing?

A. Tax: The “T” in the TIF acronym refers to property taxes.

B. Increment: The “I” in TIF refers to the “increment,” meaning the property taxes assessed

upon the “increased assessed value” that are used or “captured” to finance project costs set forth in the

Development Program. “Increased assessed value” means the valuation amount by which the current

assessed value of a TIF district exceeds the “original assessed value” of the district. “Original assessed

value” means the assessed value of a development district as of March 31st of the tax year preceding the

year in which it was designated.

For example, in the case of a District approved in the Fall of 2014, the original assessed value is

the March 31, 2014 value, i.e., the April 1, 2013 assessed value. If a TIF is approved after March 2015,

WORKSHOP ITEM: C AGENDA ITEM: G

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Jensen Baird

Gardner Henry Page 2 the original assessed value is the April 1, 2014 assessed value of the District. Accordingly, where

valuation has increased between the original assessed value date and the date of approval of the District,

such as in a new construction project, existing tax revenues may be affected by a TIF.

Example: Assume creation of District in September 2014:

● $100,000 April 1, 2013 Assessed Value is the Original Assessed Value, the tax on which

continues to go to the Town’s general fund;

● $500,000 April 1, 2016 Assessed Value, the tax on which is the increment; the tax on the first

$100,000 (the Original Assessed Value) continues to go to the General Fund and is not affected by the

TIF; the tax on the next $400,000 in assessed value is deposited in the TIF fund.

In the example above, the base or original assessed value for the term of the TIF will be the

April 1, 2013, $100,000 valuation, and the property tax on that amount is not affected by the TIF and such

tax is dedicated to the General Fund of the Town. The “increment” in this example would be all property

taxes on new valuation created over and above the $100,000 Original Assessed Value, for the term of the

TIF District, that are captured or dedicated to pay eligible project costs as described in the TIF

Development Program that the Town prepares and adopts. The Original Assessed Value is adjusted

equitably in the case of any Town-wide revaluation.

C. Financing: The “F” in TIF refers to financing, meaning the costs that are eligible by

State law and the terms of the TIF Development Program to be paid or financed out of TIF revenues.

1. What can be financed? The purpose of the TIF law is to provide new employment

opportunities, improve and broaden the tax base; improve the general economy of the State. The TIF law

authorizes municipalities to develop a program for improving a district of the municipality: (a) to provide

impetus for commercial development or transit oriented development or arts district development, or any

combination thereof; (b) to increase employment; and (c) to provide the facilities outlined in the

development program adopted by the legislative body of the municipality. Within that context, the

Development Program may finance “Project Costs” generally consisting of both public infrastructure and

private development costs, with exclusions such as buildings for general conduct of government and

recreational facilities. Project Costs, as defined by State law, may include:

a. Within the District: Costs of improvements made within the TIF district, including, but

not limited to capital costs to finance acquisition of land and equipment and construction of buildings and

other improvements for public, arts district, commercial or transit oriented uses; financing costs

(including interest on bonds); professional service costs; administrative costs, including, but not limited

to, reasonable charges for the time spent by municipal employees in connection with the implementation

of a development program. Examples of traditional uses of TIF funds include financing of new roads,

sewer and water facilities in a TIF District in connection with commercial development.

b. Related costs outside the District: Costs of improvements that are made outside the tax

increment financing district but that are directly related to or are made necessary by the establishment or

operation of the district, including, but not limited to: (1) costs reasonably related to the construction,

alteration or expansion of any facilities not located within the district that are required due to

improvements or activities within the district, including, but not limited to, sewage treatment plants, water

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Gardner Henry Page 3 treatment plants or other environmental protection devices; storm or sanitary sewer lines; water lines;

electrical lines; improvements to fire stations; and amenities on streets; (2) costs of public safety

improvements made necessary by the establishment of the district; and (3) costs of funding to mitigate

any adverse impact of the district upon the municipality and its constituents. This funding may be used

for public facilities and improvements if: (a) the public facilities or improvements are located in a

downtown tax increment financing district; and (b) the entire tax increment from the downtown tax

increment financing district is committed to the development program of the tax increment financing

district.

c. Economic development, environmental improvements or employment training outside

the District: The following described costs are additional costs that the TIF law provides can be funded

from TIF revenues, even if not in the TIF District or related to development in the TIF District, but at

times DECD administration has interpreted this category to exclude capital or infrastructure costs, and

thus has required that capital or infrastructure costs be within a TIF District or directly related to the TIF

District as described above.

Costs related to economic development, environmental improvements or employment training

within the municipality, including, but not limited to: (1) costs of funding economic development

programs or events developed by the municipality or funding the marketing of the municipality as a

business or arts location; (2) costs of funding environmental improvement projects developed by the

municipality for commercial or arts district use or related to such activities; (3) funding to establish

permanent economic development revolving loan funds or investment funds; (4) costs of services to

provide skills development and training for residents of the municipality, not to exceed 20% of the total

project costs and designated as training funds in the development program; (5) quality child care costs,

including finance costs and construction, staffing, training, certification and accreditation costs related to

child care; (6) costs relating to planning, design, construction, maintenance, grooming and improvements

to new or existing recreational trails determined by DECD to have significant potential to promote

economic development, including bridges that are part of the trail corridor, used all or in part for all-

terrain vehicles, snowmobiles, hiking, bicycling, cross-country skiing or other related multiple uses; and

(7) costs associated with a new or expanded transit service, limited to: (a) transit service capital costs,

including but not limited to: transit vehicles such as buses, ferries, vans, rail conveyances and related

equipment; bus shelters and other transit-related structures; and benches, signs and other transit-related

infrastructure; and (b) in the case of transit-oriented development districts, ongoing costs of adding to an

existing transit system or creating a new transit service and limited strictly to transit operator salaries,

transit vehicle fuel and transit vehicle parts replacements.

d. State Government: Costs of constructing or improving facilities or buildings used by

State Government that are located in approved downtown tax increment financing districts.

2. Unauthorized project costs. Except as noted above, TIFs cannot be used to finance

facilities, buildings or portions of buildings used predominantly for the general conduct of government or

for public recreational purposes, including, but not limited to, city halls and other headquarters of

government where the governing body meets regularly, courthouses, jails, police stations and other state

and local government office buildings, recreation centers, athletic fields and swimming pools.

3. Financing Options. Creation of Development Program Fund may finance:

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Gardner Henry Page 4 (a) Debt service on Bonds of the municipality;

(b) Payment or reimbursement of municipal project costs; and/or

(c) Payments to developers under Credit Enhancement Agreements.

III. Statutory Requirements. If the Town wants to consider a TIF, the following documents

must be prepared:

A. District Designation (Map).

B. Development Program. The development program must include:

1. A financial plan including cost estimates for the development program; the amount of

public indebtedness to be incurred; sources of anticipated revenues; a description of the terms of any

agreements or other obligations; estimates of increased assessed values of the district; the portion of the

increased assessed values to be applied to the development program as CAV and resulting tax increments

in each year; and a calculation of the tax shifts resulting from designation of the TIF district.

2. A description of public facilities, improvements or programs to be financed in whole or

in part by the development program;

3. A description of commercial facilities, improvements or projects to be financed in whole

or in part by the development program;

4. Plans for the relocation of persons displaced by the development activities;

5. The proposed regulations and facilities to improve transportation;

6. The environmental controls to be applied;

7. The proposed operation of the development district after the planned capital

improvements are completed;

8. The duration of the program, which may not exceed 30 years from the date of designation

of the district; and

9. All documentation submitted to or prepared by the municipality relating to consideration

of whether the Development Program will contribute to the economic growth or well being of the

municipality.

C. Public Notice and Hearing and Approval.

1. Publication of 10 day notice of public hearing.

2. Amendments require new notice and public hearing.

3. Approval must be by Town’s legislative body. Town Charter: Sec. 2.05. “General powers and

duties. All powers of the Town shall be vested in the Board of Selectmen, except as otherwise provided

by law or this Charter, and the Board of Selectmen shall provide for the exercise thereof and for the

performance of all duties and obligations imposed on the Town by law.” Sec. 7.08. “Adoption of Town

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Gardner Henry Page 5 budget. (1) Adoption by secret ballot referendum at Annual Town Meeting. The annual budget shall be

voted on by secret ballot referendum on the second Tuesday in June at the Annual Town Meeting.” Sec.

7.09. (1) Projects financed through bonds must be submitted to voters. All capital projects which are to be

financed through the issuance of bonds must be submitted to the qualified voters of the Town by secret

ballot referendum at the Annual Town Meeting or at a Special Town Meeting, after public hearings in the

manner and form prescribed in Section 2.13(2), and shall become effective immediately after such Town

Meeting, provided a majority of the legal votes cast shall be in the affirmative. Sec. 7.13. Administration

of budget. …However, except where prohibited by law, nothing in this Charter shall be construed to

prevent the making or authorizing of payments or making of contracts for capital improvements to be

financed wholly or partly by the issuance of bonds or to prevent the making of any contract or lease

providing for payments beyond the end of the fiscal year, provided that such action was made or approved

by ordinance or by Town Meeting vote.

D. Statutory considerations: Paragraphs 1 through 3 below must be met in all TIF Districts

except approved “downtown tax increment financing districts,” tax increment financing districts included

within Pine Tree Development Zones, and transit oriented development districts.

1. Suitability: 25% of area must be blighted, in need of rehabilitation, redevelopment or

conservation work or suitable for commercial uses.

2. Acreage limitations: The total area of a single development district may not exceed 2%

of the total acreage of the municipality, and the total area of all development districts may not exceed 5%

of the total acreage of the municipality.

3. Total Value: The original assessed value of a proposed tax increment financing district

plus the original assessed value of all existing tax increment financing districts within the municipality

may not exceed 5% of the total value of taxable property within the municipality as of April 1st preceding

the date of Maine Department of Economic and Community Development (“DECD”) approval of the

district. For the “large” ($10,000,000 project costs, single tax payer district with assessed value over 10%

of total value in municipality), the TIF will be exempt from the 5% valuation test only if the Development

Program does not contain project costs authorized in 30-A M.R.S.A. § 5225(1)(c) (“costs related to

economic development, environmental improvements or employment training”).

E. Approval Considerations: The legislative body of a municipality must consider whether

the proposed district or program will contribute to the economic growth or well-being of the municipality

or to the betterment of the health, welfare or safety of the inhabitants of the municipality; whether any

adverse economic effect of the proposed district or program on that interested party’s existing business in

the municipality is outweighed by the contribution made by the district or program to the economic

growth or well-being of the municipality or to the betterment of the health, welfare or safety of the

inhabitants of the municipality.

F. DECD Approval: The Development Program must be submitted to DECD for approval.

Before final designation of a TIF district, DECD reviews the proposal to ensure that the proposal

complies with statutory requirements. In the case of a downtown TIF district, the Department of

Agriculture, Conservation and Forestry and the Department of Transportation shall review the proposal

and provide advice to assist DECD in making a decision.

WORKSHOP ITEM: C AGENDA ITEM: G

Date: May 2, 2016 Exhibit Item: 3

13

Jensen Baird

Gardner Henry Page 6

IV. Assessor’s Duties. In addition to assessing TIF District property in the same manner as

all other property in the Town, the Assessor has the following responsibilities in connection with a TIF:

A. Certification of assessed value. On or after formation of a tax increment financing

district, the Assessor of the municipality shall certify the original assessed value of the taxable property

within the boundaries of the TIF district. Each year after the designation of the district, the Assessor shall

certify the amount by which the assessed value has increased or decreased from the original value.

B. Designation of captured assessed value. A municipality may retain all or part of the tax

increment revenues generated from the increased assessed value of a TIF district for the purpose of

financing the development program. The amount of tax increment revenues to be retained is determined

by designating the captured assessed value. When a development program for a TIF district is adopted,

the municipal legislative body shall adopt a statement of the percentage of increased assessed value to be

retained as captured assessed value in accordance with the development program. The statement of

percentage may establish a specific percentage or percentages or may describe a method or formula for

determination of the percentage. The Assessor shall certify the amount of the captured assessed value to

the municipality each year.

C. Assessor’s annual return to State Tax Assessor. The Town Assessor “shall make and

return lists, which must be seasonably furnished by the State Tax Assessor for that purpose, all such

information as to the assessment of property and collection of taxes as may be needed in the work of the

State Tax Assessor.” The State Tax Assessor then certifies the equalized just value of all real and

personal property excluding “that percentage of captured assessed value located within a tax increment

financing district that is used to finance that district’s development plan and the captured assessed value

located within a municipal affordable housing development district.”

V. Shelter of Increased Assessed Value or Tax Shifts.

A. Exclusion of Certitied Assessed Value from State Valuation.

B. Tax Shifts. A preliminary estimate is that the Town currently losses 45% to 50% of

every new tax dollar resulting from increases in assessed value due to how the following formulas are

structured:

(i) State aid for education

(ii) Revenue sharing

(iii) County tax

C. Impacts Not Reflected in Tax Shift Formulas.

D. Change of law.

VI. Municipal Policy Considerations for Use of TIFs.

A. What Projects are Appropriate.

B. Municipal Discretion.

WORKSHOP ITEM: C AGENDA ITEM: G

Date: May 2, 2016 Exhibit Item: 3

14

Jensen Baird

Gardner Henry Page 7

C. Adoption of Policy.

D. Costs of Review.

E. Imposition of Possible Conditions on Developers.

(i) Documentation of Project Costs

(ii) Completion of Public Improvements

(iii) Payment of Taxes

(iv) Payment of Costs

(v) Assignment; Relocation of Industry

(vi) Interest; Investment of Funds

(vii) Minimum job creation and maintenance; number and quality

(viii) Other

VII. Relationship to LD 1.

A. LD 1: 30-A M.R.S.A. § 5721-A (“LD 1”), as enacted by the Maine Legislature in January

of 2005, by its terms, provides that a municipality may not in any year adopt a “property tax levy,” as

defined in LD 1, that exceeds the property tax levy limit established in LD 1, subject to the ability, in

certain circumstances, to exceed and to increase the property tax levy limit as set forth in LD 1. Thus,

LD 1, by its terms, limits the amount of any ad valorem tax on real and personal property that may be

imposed by the Issuer to pay its expenses and obligations, subject to the ability to exceed and to increase

the property tax levy limit in the circumstances and manner set forth in LD 1.

B. TIF Exclusion: LD 1 defines “Property tax levy” to mean “the total annual municipal

appropriations, excluding assessments properly issued by a county of which the municipality is a member

and amounts governed by and appropriated in accordance with Title 20-A, chapter 606-B, appropriated as

the local share of the cost of essential programs and services under Title 20-A, chapter 606-B, to pay

assessments properly issued by a school administrative unit or tuition for students or amounts attributable

to a tax increment financing district agreement or similar special tax district, reduced by all resources

available to fund those appropriations other than the property tax.

WORKSHOP ITEM: C AGENDA ITEM: G

Date: May 2, 2016 Exhibit Item: 3

15

MEMORANDUM

TO: Mayor Michaud and City Council

FROM: Kevin Sutherland, City Administrator

DATE: April 27, 2016

RE: Saco River Dredge and Camp Ellis Update

Below is an update from Chistine Ohman, Biddeford’s Grant Writer/Special Projects Funding Coordinator who is

spearheading an effort to get the funding necessary to dredge the Saco River. In addition, I spoke with our contact in

the Maine Project office of the Army Corps of Engineers regarding the status of the Camp Ellis jetty. Below is his

response as well.

Saco River

Public Hearing Request

On Tuesday, April 29th, Biddeford City Council issued a Council Resolution to formally request a Public Hearing

with the US Army Corps of Engineers (USACE) to discuss the Saco River Dredging project as outlined in the Public

Notice. Council further requested USACE to dispose of dredged material from the “upper reach” of the Saco River in

a location other than “in-river” as proposed in the Public Notice. This Order has been forwarded on to USACE.

The Maine Department of Marine Resources has scheduled the Saco River Dredge Public Hearing for Wednesday,

May 18th from 6:00-8:00 PM in the Saco City Hall Auditorium. Once they have produced their advertising materials,

we will share that material with the Councils, through Social Media, and with our other regular media outlets. Finally,

the City of Saco will record the Public Hearing.

Saco River DRAFT Environmental Assessment

Here is a link to the DRAFT Environmental Assessment for the Saco River. It is currently open for public comment

through the end of April.

Request for Inclusion in the 2017/2018 USACE Work Plan

Christine is preparing a letter from the mayors of Biddeford and Saco to request funding for the Saco River

maintenance dredge in the 2017/2018 USACE Work Plan. This letter will be sent next week.

CITY OF SACO, MAINE Administration Kevin Sutherland, City Administrator Saco City Hall Telephone: (207) 282-4191 300 Main Street Email: KSutherland@sacomaine.gov Saco, Maine 04072-1538 Facebook: /sacomaine Twitter: @sacomaine

WORKSHOP ITEM: D Date: May 2, 2016

16

Camp Ellis

Update to the report

Work is progressing on the update. USACE Real Estate staff has been working with Saco to get all the updated

property information and values. The USACE economist has been using that information to update the benefits side

of the economic analysis. Cost engineering should be finished with the updated estimates by the end of this week,

and then that will get worked into the cost side of the economic analysis. Once that is done USACE needs to update

the main report, and the biologist will need to touch base with USF&WS on the change in endangered species status

for the bat and bunny and update that section of the Environmental Assessment accordingly.

USACE anticipates forwarding the report for the first round of reviews before the end of May.

The review sequence is as follows:

District Quality Control review - done at the New England Agency Technical Review (This was done in 2012, but

they need to certify that the changes requested have been made and the Corps Cost Center needs to re-certify the

updated project cost estimate).

Policy Compliance Review - Both the Division office in NYC and Corps HQ will take part in this, but HQ has the

last say.

Once the report leaves New England after the DQC review we have no control over how long that all might take.

This will likely be several months.

Before the report goes up to Division and HQ, USACE will need a letter of support and commitment from the City

stating that we intend to be the non-Federal sponsor for the project.

Community Meeting

City Hall is looking to do a series of “city hall in your neighborhood” meetings. One, if not the first, will be in the

Camp Ellis/Kinney Shore area. These meetings are meant to showcase what the city is working on and talk

specifically about the needs of a particular neighborhood. The outline above, along with the report and timeline will

be a part of that discussion.

WORKSHOP ITEM: D Date: May 2, 2016

17

MEMORANDUM

TO: Mayor Michaud and City Council

FROM: Kevin Sutherland, City Administrator

DATE: April 27, 2016

RE: Free Bayview Parking Lot Permit for Disabled Veterans

It was requested from council during workshop last month that we look to provide a free Bayview Parking Lot Permit

for disabled veterans. The recommended fee schedule which will be voted on May 9th, provides an opportunity to

make this available by adding a new line for parking passes for disable veterans, noted as FREE (page 4 of 17).

How this will work?

If a resident has a disabled veteran plate they just need to show their registration to get a parking pass for FREE.

If they don’t have a disable veteran plate, they’ll have to provide the same documentation they would use to get a

disabled veteran plate (a form from their branch of service). Most know this form well, and already have it available.

CITY OF SACO, MAINE Administration Kevin Sutherland, City Administrator Saco City Hall Telephone: (207) 282-4191 300 Main Street Email: KSutherland@sacomaine.gov Saco, Maine 04072-1538 Facebook: /sacomaine Twitter: @sacomaine

WORKSHOP ITEM: E Date: May 2, 2016

18

MEMORANDUM

TO: Mayor Michaud and City Council

FROM: Kevin Sutherland, City Administrator

DATE: April 27, 2016

RE: Options for Saco Assessment Department

In the middle of April, our Director of Assessment took a position with another Maine municipality. Under normal

circumstances, it is the responsibility of the City Administrator to re-hire a replacement. At the time, Administration

also began to look at a re-organization of the department and in addition, I had a conversation with the City Manager

and the Joint Steering Committee for Biddeford and Saco about exploring a joint assessment department. Below are

three potential scenarios. Considering option 3 would require an affirmative action of council and therefore it is in

front of you as a part of a workshop.

A merger/shared department would not be about saving money; it would be about showing the community we’re

interested in partnering to a greater extent than we are currently. That’s the value judgment I am searching for at this

time and am looking forward to your feedback at workshop.

Appendix A is the draft agreement that I would have reviewed by our attorney if this is the direction Council would

like to go in. It would also be coming to you as an item commentary on May 16th.

Proposed Budget Option 2 Option 3

Assessment Assessment/Building Joint Assessment

Assessor Assessor Shared Assessor

118,978 99,648 66,802

Deputy Assessor Dep. Assessor/CEO Deputy Assessor

75,334 89,960 89,960

Assistant PT Assistant Shared Lister

45,672 6,920 41,520

PT Assistant

6,920

Building Inspection Building Inspection

.5 Assistant CEO .5 Assistant CEO

29,064 29,064

STAFF TOTAL 269,048 196,528 234,266

Potential Savings from current budget 72,520 34,782

(each position includes Salary and Fringes)

Staffing options for the Assessing Department

CITY OF SACO, MAINE Administration Kevin Sutherland, City Administrator Saco City Hall Telephone: (207) 282-4191 300 Main Street Email: KSutherland@sacomaine.gov Saco, Maine 04072-1538 Facebook: /sacomaine Twitter: @sacomaine

WORKSHOP ITEM: F Date: May 2, 2016

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Appendix A

Page 1 of 4

AGREEMENT FOR OPERATION

OF SHARED ASSESSMENT DEPARTMENT

THIS AGREEMENT is made this “XX” day of “XXXX”, 2016 by and between the CITY OF BIDDEFORD, a Maine municipal corporation existing under the laws of the State of Maine and located in York County (hereinafter “Biddeford”) and the CITY OF SACO, a Maine municipal corporation existing under the laws of the State of Maine and located in York County (hereinafter “Saco”), collectively (“The Parties”). WHEREAS, pursuant to 30-A M.RSA.§ 2201,et seq., municipalities are permitted to make the most efficient use of their powers by enabling them to cooperate with other municipalities on the basis of mutual advantage; and, WHEREAS, the Cities are desirous to create efficiencies for the benefit of the citizens and property taxpayers of both communities; and, WHEREAS, Biddeford is willing and able to provide assessment services through its City Assessor to Saco on a cost sharing basis and pursuant to the terms provided below. NOW, THEREFORE, Biddeford and Saco agree as follows: 1. Creation of Joint Department: The Cities have, through vote of their respective City Councils on

this agreement, voted to create a joint Assessing Department which will be made up of shared employees between the two communities as well as employees that are hired directly by the individual cities to assist the joint efforts.

2. Staffing of Joint Department: The Cities will joint share and employ the chief assessor for both

communities. For the purpose of this agreement, one of the Cities will take the lead as the primary employee for the purpose of employment issues. The day to day oversight of the employee will be jointly shared between the Biddeford City Manager and the Saco City Administrator.

a. For the initial term of this agreement, the Cities agree to appoint Biddeford’s Assessor (Frank Yattaw) to serve in the capacity of chief assessor for the joint department.

b. Each community will employ a Deputy Assessor which will have primary responsibilities to their respective community. Each deputy shall be appointed by the respective City Manager/City Administrator upon nomination by the shared chief assessor. While the respective deputies will remain as employees of the respective community, each will be expected to assist the chief assessor in any and all issues facing either community as so directed.

c. The Cities will jointly share and employ an assessor listing agent to assist both communities in determining the values of personal property and real property. For the initial term of this agreement, the person will be an employee of the City of Saco. The parties, through their respective City Manager/City Administrator will agree on the process of filing this new position.

WORKSHOP ITEM: F Date: May 2, 2016

20

Appendix A

Page 2 of 4

d. Each community commits to supplying the necessary administrative support for their respective assessing offices. For the purposes of this agreement, this shall be at least 20 hours weekly of dedicated support.

3. Appointment of Biddeford Assessors’ Agent. Saco’s City Council has appointed Frank Yattaw, the current Biddeford Assessor, with the consent of Biddeford, to be the official Saco Assessors’ Agent for all purposes required under law, but subject to the provisions in Paragraph 4 below that he shall at all times remain solely an employee of Biddeford.

4. Scope of Services. The Cities agree to the following scope of services for the two shared positions:

a. The Biddeford Assessor shall perform all duties and responsibilities imposed by law on Saco Assessors’ Agent, including assessing the April 1st real and personal property taxes and committing the same for collection, management of assessing personnel, hearing and deciding abatement requests, providing information to municipal officials and citizens, state agencies, vendors and other persons with interest in activities pertaining to the assessing functions of Saco including, appearing in any and all administrative and judicial forums to defend challenges to the Saco assessments. Duties of Saco Assessors’ Agent are more clearly defined in the job description, attached as Attachment A. It is expected that over any extended period of time, the chief assessor will spend equal time performing for duties for each community. It is the expectation that the Biddeford Assessor will maintain a physical presence in Saco for two (2) days each week and be available via telephone and email and in person, as needed during the regular work week, to address questions or concerns that cannot be addressed by other employees. It is understood that during commitment periods or periods of peak abatement request activity, additional physical attendance and/or time commitment may be required at the office of a particular party, and it is agreed that the Assessor may, in his discretion, allocate his time such that the time demands for one party are met without sacrificing his duties for the other party.

b. It is the expectation that the assessing listing agent will spend an equal amount of time

between the two communities over any extended period of time. It will be expected that the assessing listing agent will be in Biddeford City Hall at least two (2) days a week under normal circumstances.

5. Assessment Data. The data collected, analyzed and archived for each City shall physically reside in

that City; and all data, databases, and other assessment records shall be assembled and stored for each City separately. While the merged use of the data is encouraged, the databases themselves shall remain independent entities, as they exist today, on the day of this agreement and each Party shall be solely responsible for the integrity, protection, and backup of its respective data.

6. City as Sole Employer.

a. The Biddeford Assessor shall remain an employee of Biddeford during the term of this agreement for all administrative purposes including, without limitation, pay, benefits, and worker’s compensation coverage. However, the Assessor shall be subject to the oversight, direction, and control of the party for whom duties are being performed and shall conform to the relevant provisions of any charter, ordinance, or policy of the party for whom duties are being performed.

WORKSHOP ITEM: F Date: May 2, 2016

21

Appendix A

Page 3 of 4

b. The assessing listing agent shall remain an employee of Saco during the term of this agreement for all administrative purposes including, without limitation, pay, benefits, and worker’s compensation coverage. However, the employee shall be subject to the oversight, direction, and control of the chief assessor.

7. Saco Responsibility. The Biddeford Assessor shall be an agent of the Saco City Administrator for

the purposes of statutory authorization and for all functions and duties of the assessing office including, without limitation, establishing taxable valuation assessments, determination of abatement requests, exemption funding, certification of ratios, and listing and, where appropriate, inspecting real and personal property and equipment. Saco shall provide a dedicated workspace for the Biddeford Assessor at Saco’s City Hall, complete with desk, chair, telephone, computer, and internet access and related office supplies to use when working in the City of Saco. Saco will also provide office support, legal counsel and assessment defense costs, independent appraisals, mass valuations and reviews as needed, and funding and physical location for administrative appeals processes for challenges to Saco assessments. Saco shall provide such additional financial and administrative support for mapping, computer systems, printing, mailing, and other necessary resources and functions as Saco shall deem necessary and prudent for the proper administration of the Saco assessing function.

8. Cost. The Cities agree to share all employment costs of the chief assessor and assessing listing agent

equally. Quarterly, the Cities will meet to determine the amounts owed and payment will be made within thirty (30) days of the determination. During the first year of the agreement, Cities, through their respective City Manager/Administrator will determine the joint budget for the operation of the joint operation. Effective the July 1, 2017 budget, the joint budget will be agreed on by the respective City Council’s through a budget process that the parties will agree on.

9. Indemnification. If a claim is brought against either Saco or Biddeford arising out of, or within the

scope of the service performed by the Biddeford Assessor or any other agents he may lawfully engage for Saco, then Saco shall defend, indemnify and hold harmless Biddeford and its officials, agents and employees, including, without limitation, the Assessor in his official and individual capacities from and against all such claims, damages, losses and expenses, including reasonable attorney’s fees. This section shall not be interpreted to waive the monetary limits or substantive areas of immunity under the Maine Tort Claims Act.

10. Term and Termination of Agreement. The initial term of this Agreement shall be expire on June

30, 2018 and shall commencing on the day it is signed by the Biddeford City Manager and Saco City Administrator. This Agreement may be canceled by either party upon written notice to the other party at least 60 days prior to the intended termination date. The Parties agree that any amendment to this Agreement may be upon the mutual written and affirmative action of the City Council for both municipalities.

WORKSHOP ITEM: F Date: May 2, 2016

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Appendix A

Page 4 of 4

11. Notification. Notices under this Agreement shall be sufficient if sent by first class mail or hand-delivered as follows:

TO SACO: City Administrator City of Saco 300 Main Street Saco, ME 04072 TO BIDDEFORD: City Manager City of Biddeford 205 Main Street Biddeford, ME 04005

12. Default. In the event a party defaults under this Agreement, the other party shall have those remedies available to at law and equity; provided it shall first give the defaulting party written notice and a reasonable time to cure.

13. Entire Agreement. This Agreement constitutes the entire agreement between the Parties. If any

clause, section or provision is held to be invalid or unenforceable, that shall not affect the entire agreement and the Parties agree to meet and negotiate a new clause, section, provision, or agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year first written. City of Biddeford Date James A. Bennett, City Manager City of Saco Date Kevin L. Sutherland, City Administrator

WORKSHOP ITEM: F Date: May 2, 2016

23

CONSENT AGENDA: B Date: May 2, 2016

MEETING ITEM COMMENTARY

AGENDA ITEM: Application for a Solid Waste Permit – Maine Waste Solutions d/b/a

We Compost It! STAFF RESOURCE: Michele L. Hughes, City Clerk COUNCIL RESOURCE: Councilor Eric Cote BACKGROUND: Maine Waste Solutions d/b/a We Compost It has applied for a Solid Waste Permit for a period of one year. The applicant has paid all applicable permit fees as required by Chapter 181 – Solid Waste, Article II, Licenses §181-21. EXHIBITS: 1. Application RECOMMENDATION: Staff recommends approval. SUGGESTED MOTION: “Be it Ordered that the City Council grant the application for a Solid Waste Permit as submitted by Maine Waste Solutions d/b/a We Compost It!” “I move to approve the Order”.

24

CONSENT AGENDA: B Date: May 2, 2016

Exhibit Item: 1

25

CONSENT AGENDA: B Date: May 2, 2016

Exhibit Item: 1

26

CONSENT AGENDA: C Date: May 2, 2016

MEETING ITEM COMMENTARY AGENDA ITEM: Confirm the Mayor’s Appointment of Gary Marston

to the Coastal Waters Commission COUNCIL RESOURCE: Councilor Kevin Roche STAFF RESOURCE: Kevin L. Sutherland, City Administrator

BACKGROUND: The Coastal Waters Commission shall be composed of seven members, to be appointed by the Mayor for a three-year term and approved by the City Council. Each Commission member shall be a resident of the city, shall be persons qualified to perform the duties of such office, and shall serve without compensation. The Mayor is recommending the appointment of Gary Marston Glenhaven Circle to serve on the Coastal Waters Commission for a three-year term. EXHIBITS: Letter of Interest RECOMMENDATION: The Mayor recommends confirmation SUGGESTED MOTION: “Be it Ordered that the City Council confirm the Mayor’s appointment of Gary Marston as a full member of the Saco Coastal Waters Commission, with his term ending on May 2, 2019.” “I move to approve the Order”.

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Gary Marston – Brief Biography

I have spent the majority of my youth and adult life living in Glenhaven Circle. I attended Saco schools

graduating in 1962 from Thornton Academy. I received my bachelor’s degree from Babson College in

1965. My business career was spent working in various management positions for Corning Glass Works,

Lund Manufacturing and Fairchild Semiconductor. I have been active in Marston’s Marina since its

inception and currently a Principal Owner.

Over the years I have been a member of a variety of local boards including the Saco Planning Board and

Coastal Waters Commission. I was also instrumental in starting ice hockey as a sport at Thornton

Academy. I am currently a Corporator of Saco Biddeford Savings Bank and a Board Member of Laurel Hill

Cemetery.

My spare time is spent with my wife, Friends, three adult children and nine grandchildren.

CONSENT AGENDA: C Date: May 2, 2016

Exhibit Item: 1

28

AGENDA ITEM: A Date: May 2, 2016

MEETING ITEM COMMENTARY AGENDA ITEM: (Public Hearing) Adoption of Fiscal Year 2017 Municipal Budget COUNCIL RESOURCE: Councilor Alan Minthorn STAFF RESOURCE: Kevin Sutherland, City Administrator

Cheryl Fournier, Finance Director BACKGROUND: The City Administrator presented a recommended Fiscal Year 2017 budget on March 28, 2016. The Council discussed the budget in workshop on April 4, 2016, April 11, 2016, and April 19, 2016. In addition, a public hearing was held on May 2, 2016. Below is a motion for the adoption of the Fiscal Year 2017 Budget for the City of Saco as proposed by the City Administrator. SUGGESTED MOTION: “I move to open the Public Hearing on the Fiscal Year 2017 City Budget, Water Resource Recovery Department, and Capital Improvement Program.” “I move to close the Public Hearing, and be it ordered that the City Council set the vote on the FY17 Municipal Budget, Water Resource Recovery Department., and Capital Improvement Program for May 9, 2016.” “I move to approve the Order.” SUGGESTED MOTION FOR BUDGET ADOPTION ON MAY 9, 2016: “Be it Ordered that the City Council move to approve an appropriation order for the adoption of the Fiscal Year 2017 budget, excluding all school and county related items, per Section 6.06 and 6.07 of the Charter of the City of Saco, Maine as follows: Approve gross expenditures of $25,970,556 ($48,999,836 less School $21,764,771 and County $1,264,509) in municipal expenditures, $23,990,837 in departmental appropriations, $100,000 in overlay, $999,719 in TIF transfers, and $880,000 in capital improvements for municipal operations; to be offset by $25,970,556 in anticipated revenue and other credits, which represents $8,187,053 in anticipated municipal revenues, and other credits of $702,645 from the Ambulance Fund, $38,600 from the Saco Island TIF, and $313,200 from the School Fund, and the $9,000 from the Camp Ellis Fund: and thereby raising gross taxes of $16,720,058 and further ordering that the amounts set in the following attached schedule titled CITY OF SACO FY2017 BUDGET OVERVIEW which shall become a part of the City Clerk's records and shall designate the form of the City of Saco Budget for Fiscal Year 2016 - 2017 as authorized under Section 6.04 of the Charter of the City of Saco, Maine. “I move to approve the order.”

29

AGENDA ITEM: A Date: May 2, 2016

30

AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor Alan Minthorn Amendment 6 Background: RAD #1721 (Section 4 Page17) – City Clerk Preservation of vital records

10392 500428 Contracted Services $2,210 Ongoing $2,210

Amendment 6: “Be it ordered that the City Council approve an increase to the ‘City of Saco FY 2017 City Budget’ City Clerk from $174,990 decrease by $2,210 to $177,200.” “I move to approve the Order.” COUNCIL RESOURCE: Councilor Alan Minthorn Amendment 7 Background: RAD #1740 (Section 4 Page 37) – Parks and Recreation Life Guards (original staffing)

10570 500113 Temporary/Seasonal $21,231 Ongoing 10571 500288 Benefits 2,335 Ongoing 10572 500317 Minor Equipment 1,250 Ongoing 10572 500324 Uniforms 1,250 Ongoing 10572 500329 Program Clothing 1,500 Ongoing $27,566

Amendment 7: “Be it ordered that the City Council approve an increase to the ‘City of Saco FY 2017 City Budget’ Parks and Recreation from $872,793 decrease by $27,566 to $900,359.” “I move to approve the Order.” COUNCIL RESOURCE: Councilor Alan Minthorn Amendment 8 Background: RAD #1740 (Section 4 Page 37) – Parks and Recreation Life Guards (new service)

10230 300708 Recreation Department Fees $(40,000) Ongoing 10350 300800 Use of Surplus (60,000) One-time 10570 500113 Temporary/Seasonal 6,000 Ongoing 10571 500288 Benefits 660 Ongoing 10572 500317 Minor Equipment 60,000 One-time 10572 500910 Capital Projects 6,250 Ongoing $(27,090)

Amendment 8: “Be it ordered that the City Council approve an increase to the ‘City of Saco FY 2017 City Budget’ Parks and Rec from $900,359 decrease by $32,910 to $933,269 and use of surplus from $277,519 increase by $60,000 to $337,519.” “I move to approve the Order.”

31

AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor Alan Minthorn Amendment 9 Background: RAD #1743 (Section 4 Page 38) – Parks and Recreation Replenish the Agricultural Supplies

10572 500303 Agricultural Supplies $5,000 Ongoing $5,000

Amendment 9: “Be it ordered that the City Council approve an increase to the ‘City of Saco FY 2017 City Budget’ Parks and Recreation from $933,269 decrease by $5,000 to $938,269.” “I move to approve the Order.” COUNCIL RESOURCE: Councilor Alan Minthorn Amendment 10 Background: RAD #1761 (Section 4 Page 51) – Public Works Do not collect fees for the Transfer Station

10190 300704 Transfer Station Fees $100,000 Ongoing $100,000

Amendment 10: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Public Works from $2,727,388 decrease by $100,000 to $2,827,388.” “I move to approve the Order.” COUNCIL RESOURCE: Councilor Kevin Roche Amendment 11 Background: C1 (Section 5 Page 7) – County Tax The final numbers have been received by County, the estimate was slightly low.

10590 500800 County Tax $ 1,474 Ongoing $ 1,474

Amendment 11: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ County Tax from $1,264,509 increase by $1,474 to $1,265,983.” “I move to approve the Order.”

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AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor Alan Minthorn Amendment 12 Background: Dyer Library (Section 5 Page 13) – Supported Agencies The RAD #1762 for Dyer Library.

10622 500703 Dyer Library $54,288 Ongoing $54,288

Amendment 12: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Supported Agencies from $779,876 increase by $54,288 to $834,164.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor Alan Minthorn Amendment 13 Background: RAD #1750 (Section 4 Page 46) – Police Department To replace the third cruiser.

10462 500501 Cruisers $33,500 Ongoing $33,500

Amendment 13: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Police Department from $4,716,570 increase by $33,500 to $4,750,070.” “I move to approve the Order.” COUNCIL RESOURCE: Councilor Kevin Roche Amendment 14 Background: Staffing (Section 4 Page 1) - Administration Additional staffing for Finance and Grants.

10370 500104 Clerical Wages $ 75,000 Ongoing 10371 500288 Benefits $ 28,800 Ongoing $103,800

Amendment 14: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Administration from $357,786 increase by $103,800 to $461,586.” “I move to approve the Order.”

33

AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor Kevin Roche Amendment 15 Background: RAD #1731 (Section 4 Page 28) – Fire Department Remove ladder truck maintenance and provide ongoing maintenance.

10472 500320 City Vehicle Repair $(119,000) One-time 10350 300800 Use of Reserves $ 129,000 One-time $ 10,000

Amendment 15: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Fire Department from $4,065,263 decrease by $119,000 to $3,946,263 and use of surplus from $337,519 decrease by $129,000 to $208,519.” “I move to approve the Order.” COUNCIL RESOURCE: Councilor Kevin Roche Amendment 16 Background: Increase Parks & Rec Revenue (Section 4 Page 35) – Parks & Recreation Increase the Parks & Rec revenue.

10230 300708 Recreation Department Fees $(40,000) Ongoing $(40,000)

Amendment 16: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Parks and Recreation from $938,269 decrease by $40,000 to $898,269.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor Kevin Roche Amendment 17 Background: Realize Savings (Section 4 Page 5) – Assessment Realize the savings from Assessment reorganization.

10410 500104 Clerical Wages $(18,064) Ongoing 10411 500288 Benefits $( 6,936) Ongoing $(25,000)

Amendment 17: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Assessment from $239,640 decrease by $25,000 to $214,640.” “I move to approve the Order.”

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AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor David Precourt Amendment 18 Background: Overtime (Section 4 Page 24) – Fire Department Defund the overtime request.

10470 500114 Overtime $(100,000) Ongoing 10471 500288 Benefits $( 23,660) Ongoing $(123,660)

Amendment 18: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Fire Department from $3,946,263 decrease by $123,660 to $3,822,603.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor David Precourt Amendment 19 Background: RAD #1709 (Section 5 Page 5) – Capital Improvements Increase the Capital Improvements to designate half of the cost of the Wash bay.

10670 500910 Capital Improvements $ 325,000 One-time 10350 300800 Use of Surplus $(325,000) One-time $ 0

Amendment 19: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Capital Program from $3,315,101 increase by $325,000 to $3,640,101 and the use of surplus from $208,519 increase by $325,000 to $533,519.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor David Precourt Amendment 20 Background: RAD #1744 (Section 4 Page 38) – Parks and Recreation Defund the small parts request.

10572 500320 City Vehicle Repairs $(3,500) Ongoing $(3,500)

Amendment 20: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Parks and Recreation from $898,269 decrease by $3,500 to $894,769.” “I move to approve the Order.”

35

AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor David Precourt Amendment 21 Background: RAD #1745 (Section 4 Page 39) – Parks and Recreation Defund additional building repairs and maintenance.

10572 500351 Building Repairs and Maint. $(8,000) Ongoing $(8,000)

Amendment 21: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Parks and Recreation from $894,769 decrease by $8,000 to $886,769.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor David Precourt Amendment 22 Background: RAD #1757 (Section 4 Page 49) – Public Works Defund minor equipment request.

10482 500317 Minor Equipment $(10,000) Ongoing $(10,000)

Amendment 22: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Public Works from $2,827,388 decrease by $10,000 to $2,817,388.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor David Precourt Amendment 23 Background: RAD #1760 (Section 4 Page 50) – Public Works Focus department attention on city fleet, not school buses.

10170 300702 Public Works Revenue $10,000 Ongoing $10,000

Amendment 23: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Public Works from $2,817,388 increase by $10,000 to $2,827,388.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor David Precourt Amendment 24 Background: No new vehicles (Section 3 Page 4) – Capital Program Defund assets in capital program.

10650 500829 Lease Payments $(55,217) Ongoing $(55,217)

Amendment 24: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Capital Program from $3,640,101 decrease by $55,217 to $3,584,884.” “I move to approve the Order.”

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AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor Kevin Roche Amendment 25 Background: Goosefare Brook (Section 3 Page 6) – Capital Program Remove funding for Goosefare Brook impairment improvement.

10670 500910 Capital Improvements $(50,000) Ongoing $(50,000)

Amendment 25: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Capital Program from $3,584,884 decrease by $50,000 to $3,534,884.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor Kevin Roche Amendment 26 Background: Camp Ellis erosion RAD #1758 (Section 4 Page 50) – Public Works Maintain current level of funding for Camp Ellis erosion.

10670 500910 Capital Improvements $10,000 Ongoing $10,000

Amendment 26: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Public Works from $2,827,388 increase by $10,000 to $2,837,388.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor Nathan Johnston Amendment 27 Background: Public Agencies RAD #1752 (Section 5 Page 17) – Supported Agencies Maintain current level of funding to public agencies.

10620 500716 Meals on Wheels $ 186 Ongoing 10620 500711 Saco River Corridor $ 372 Ongoing 10620 500709 Bidd Saco Area Econ. Dev. $ 557 Ongoing 10620 500704 Saco Pathfinders $ 99 Ongoing 10620 500714 Veterans Council $ 37 Ongoing 10620 500712 Saco Community Activities $ 465 Ongoing $1,716

Amendment 27: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Supported Agencies from $834,164 increase by $1,716 to $835,880.” “I move to approve the Order.”

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AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor Nathan Johnston Amendment 28 Background: Overtime RAD #1727 (Section 4 Page 26) – Fire Department Provide overtime to allow for professional development.

10470 500114 Overtime $30,000 Ongoing 10471 500288 Benefits $11,220 Ongoing 10472 500322 Tuition/Training $ 5,000 Ongoing $46,220

Amendment 28: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Fire Department from $3,822,603 increase by $46,220 to $3,868,823.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor Nathan Johnston Amendment 29 Background: Culverts RAD #1710 (Section 5 Page 2) – Capital Program Funding for Route 1 culvert repair.

10670 500910 Capital Improvements $75,000 One-time $75,000

Amendment 29: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Capital Program from $3,534,884 increase by $75,000 to $3,609,884.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor Nathan Johnston Amendment 30 Background: York County Comm. Action (Section 5 Page 2) – Supported Agencies Fund York County Community Action corporation budget request.

10620 New Acct York Count Comm. Action $4,000 Ongoing $4,000

Amendment 30: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Supported Agencies from $835,880 increase by $4,000 to $839,880.” “I move to approve the Order.”

38

AGENDA ITEM: A Date: May 2, 2016

COUNCIL RESOURCE: Councilor Nathan Johnston Amendment 31 Background: Sidewalk (Section 4 Page 47) – Public Works Finish sidewalk on Park Street.

10486 500910 Sidewalk Improvement $20,000 Ongoing $20,000

Amendment 31: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Public Works from $2,837,388 increase by $20,000 to $2,857,388.” “I move to approve the Order.”

COUNCIL RESOURCE: Councilor Nathan Johnston Amendment 32 Background: Tennis Courts (Section 3 Page 7) – Capital Program Defund the Middle School Tennis Courts.

10670 500910 Capital Improvement $(100,000) Ongoing $(100,000)

Amendment 32: “Be it ordered that the City Council approve a decrease to the ‘City of Saco FY 2017 City Budget’ Capital Program from $3,609,884 decrease by $100,000 to $3,509,884.” “I move to approve the Order.”

39

AGENDA ITEM: B Date: May 2, 2016

MEETING ITEM COMMENTARY

AGENDA ITEM: (Public Hearing) Zoning Ordinance: Amendment, I-2 Zone Setback STAFF RESOURCE: Bob Hamblen, City Planner COUNCIL RESOURCE: Councilor William Doyle BACKGROUND: Applicant Sure Winner Foods office is at 2 Lehner Road, a 4.3 acre parcel that includes three outbuildings, two which function as self-storage. The applicant would propose at least one more commercial structure but is hampered by the corner lot situation: with a front yard setback of 50 feet from both Industrial Park Road and Lehner Road, a significant portion of the parcel is rendered unbuildable. The applicant considered a contract zone to request a reduction of the front yard setback from Lehner Road to 25 feet. The Planning Board suggested instead an amendment to the Zoning Ordinance, allowing the front yard setback for parcels in the I-2 zone to be reduced to 25 feet if measured from streets that are not North Street, Industrial Park Road, or Lund Road. The I-2 district is fairly limited in area, and includes only four streets either within or abutting it: Lehner Road, North Street, Industrial Park Road, and Lund Road. The amendment affects two parcels: 1 Lehner Road, and 2 Lehner Road. The Planning Board considered and held a public hearing on March 15, 2016. The Board recommends that the amendment be adopted as proposed. EXHIBITS: Exhibit items were previously provided in the April 11, 2016

Council Packet and can be found on our website. 1. Table 412-1, amended 2. Letter from applicant, January 12, 2016 3. Site Plan, 2 Lehner Rd. 4. Planner’s Memo, March 17, 2016 5. CEO Richard Lambert’s Comments 6. Planning Board minutes, March 15, 2016 7. Excerpt, Zoning Map (showing I-2 zone)

RECOMMENDATION: Staff supports the amendment as drafted. SUGGESTED MOTION: “I move to open the Public Hearing for the document titled, “Amendments to Table 412-1 and Footnotes, Amended January 19, 2016”.” “I move to close the Public Hearing and further moves to set the Second and Final Reading for May 9, 2016.”

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AGENDA ITEM: B Date: May 2, 2016

“Amendment to Table 412-1 and Footnotes, Amended March 15, 2016”

(New language is underlined). 30. In the I-2 zone, the front yard setback may be reduced to twenty-five (25) feet for parcels with

frontage on City streets other than North Street, Industrial Park Road and Lund Road.

###

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AGENDA ITEM: C Date: May 2, 2016

MEETING ITEM COMMENTARY

AGENDA ITEM: (Public Hearing) Renewal Application for Special Entertainment Permit – Kerrymen Pub

STAFF RESOURCE: Michele L. Hughes, City Clerk

COUNCIL RESOURCE: Councilor William Doyle

BACKGROUND: John Kerry d/b/a Kerrymen Pub has applied for a renewal of their Special Entertainment Permit. The permit will be concurrent with the establishment’s liquor license.

The applicant has paid all applicable permit fees and the clerk has properly advertised the public hearing in accordance with the Saco City Code, Chapter 93 - Entertainment §93-2.

EXHIBITS: 1. Special Entertainment Permit

RECOMMENDATION: Staff recommends approval.

SUGGESTED MOTION: “I move to open the Public Hearing.”

“I move to close the Public Hearing and be it ordered that the City Council grant the renewal application submitted by John Kerry d/b/a Kerrymen Pub for a Special Entertainment permit to be concurrent with the establishment’s current liquor license”.

“I move to approve the Order.”

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AGENDA ITEM: C Date: May 2, 2016

Exhibit Item: 1

43

WORKSHOP ITEM: A AGENDA ITEM: D

Date: May 2, 2016

MEETING ITEM COMMENTARY AGENDA ITEM: (Second & Final Reading) Amendment to Saco Code,

Chapter 99 – Firearms STAFF RESOURCE: Chief Bradley Paul COUNCIL RESOURCE: Councilor David Precourt BACKGROUND: Saco is well-known for its horse farms and breeders in the Buxton Road/Louden Road areas. As equine enthusiasm continues to expand, an interest in western-style mounted cowboy shooting sports has developed as well. Enthusiasts of this activity have requested an ordinance change necessary to permit them to legally conduct competitions and demonstrations in the Shotgun Only zone. Currently this is not permissible by ordinance (Chapter 99 Firearms). The Saco City Code only permits the discharge of shotguns and muzzleloaders in the area where two of the primary horse farms with an expressed interest in mounted cowboy shooting sports are located. This sport does not involve discharging projectiles, as only blank cartridges are used. However, ordinance changes are necessary to permit the activity, as the firearms the blank cartridges are discharged from meet the federal, state, and city definitions of ‘firearm’. An additional issue the suggested changes attempt to address is to permit blank cartridges to be discharged for limited purposes (military ceremonies, theatrical purposes, etc). And finally, language/structural changes to the current ordinance were addressed as explained. City Council discussed during Workshop on March 14, 2016 and suggested revisions to Chapter 99. EXHIBITS: Exhibit items were previously provided at the March 28, 2016

Council Meeting and can be found on our website. 1. Chief Paul Memo to Council

2. City Code Chapter 99 Firearms Current Ordinance 3. City Code Chapter 99 Firearms Draft

4. City Code Chapter 149 Noise 5. City Code Zoning Ordinance Article 8 RECOMMENDATION: Staff recommends consideration of the proposed changes. FUNDING: None needed. AMENDED MOTION: “Be it ordered that the City Council hereby ordains and approve the Second and Final Reading for the amendment to the Saco Code, Chapter 99-Firearms.” “I move to approve the order”

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AGENDA ITEM: E Date: May 2, 2016

MEETING ITEM COMMENTARY

AGENDA ITEM: (Second & Final Reading) Zoning Ordinance Amendment:

Table 412-1 - MU-3 Zone STAFF RESOURCE: Bob Hamblen, City Planner COUNCIL RESOURCE: Councilor William Doyle BACKGROUND: The developer of the Park North multi-use development asked that the Planning Board consider lessening frontage requirements for parcels in the MU-3 zone, each side of Rte. 1 and North of Flag Pond Road and Cascade Road. The Board reviewed existing parcels and frontages, the Comprehensive Plan, and frontage requirements along Route 1 in nearby communities as part of its discussion. The Planning Board considered this in a series of workshops from August to December and held a public hearing on Jan. 19, 2016. The Board recommends that the amendments be adopted as proposed. The City Council discussed this item during Workshop on March 14, 2016 and held the first reading on March 28, 2016. EXHIBITS: Exhibit items were previously provided at the March 28, 2016

Council Meeting and can be found on our website. 1. Planner’s Memo, January 29, 2016 2. Table 412-1 and Footnotes to Table 412-1, amended January 19, 2016 3. Letter from Chamberlain, September 21, 2015 4. MU-3 Zone Map 5. Planning Board minutes, January 19, 2016 6. Planner’s Memo, March 28, 2016

RECOMMENDATION: Staff supports the amendments as drafted. AMENDED MOTION: “Be it ordered that the City Council hereby ordains and approves “I move to approve the order”

45

AGENDA ITEM: F Date: May 2, 2016

MEETING ITEM COMMENTARY AGENDA ITEM: Amendment to the Purchasing Policy

STAFF RESOURCE: Kevin L. Sutherland, City Administrator

COUNCIL RESOURCE: Councilor Eric Cote

BACKGROUND: At the March 14, 2016 workshop, our Public Works Director Pat Fox brought to council a proposal to extend the current curbside Municipal Solid Waste (MSW) and Recycling collection contract with Pine Tree Waste for an additional three years. With a limited number of contractors capable of providing automated trash pickup for a community Saco’s size, and after reviewing more recently bid contracts by surrounding communities, it is believed bidding a new collection contract would, at this time cost the City more money. At that meeting, concern was raised that by doing so, we would be violating the city’s Purchasing Policy. At the April 11, 2016 Workshop, Council requested a revision to the purchasing policy to allow for such an exception. EXHIBITS: 1. Sections from the purchasing policy dated 11/5/13 that have been changed

to clarify professional services

RECOMMENDATION: Staff recommends accepting the revisions to the Purchasing Policy.

SUGGESTED MOTION: “Be it ordered that the City Council accept the revisions to the Purchasing Policy dated 4/28/16, as presented” “I move to approve the order”

46

City of Saco

Tel: (207) 282-1032

Fax: (207) 282-8209

Email: cheryl.fournier@sacomaine.org

Finance Office

Cheryl Fournier, Finance Director

Saco City Hall

300 Main Street, Saco, ME 04072

The following are the sections from the purchasing policy dated 11/5/13 that have been changed to

clarify professional services (in red) dated 4/28/16.

C. DEFINITIONS

APPROPRIATION – An amount authorized by the City Council for expenditures or to incur obligation for a specific purpose, such as debt for a capital project.

BID BOND – Protection against a bid offer being withdrawn after opening.

BID SPECIFICATIONS – Conditions set by the City that must be met by the vendor in the type and quality of goods or services offered for bid.

BLANKET CONTRACTS – Are agreements that include items, prices, quantities and periods, which have been negotiated with a supplier into a contractual agreement.

COMMERCIAL CREDIT CARD - See Purchasing Card.

COOPERATIVE PURCHASING – A technique whereby one or more cities or towns may collectively purchase goods and services.

DOCUMENTATION RETENTION – The City follows the State of Maine Rules for Disposition of Local Government records.

EMERGENCY - When an unforeseen event arises or a situation whereby there exists a threat to public health, welfare or safety of the City of Saco, its residents or its employees and failure to act promptly shall result in negative consequences.

INTERMEDIATE PURCHASES - Intermediate purchases shall include purchases of goods and services with a cost of greater than $3,000 but less than $8,000.

LARGE PURCHASES - Large purchases shall include the purchases of goods and services the cost of which are $8,000 or greater.

LONG-TERM COST – Cost of supplies/services needed in maintaining quality of purchase or service after initial purchase.

LOWEST RESPONSIBLE BIDDER – A vendor who bids to provide goods or services on large purchase with the ability, capacity, and skill to provide goods or services required by the bid. The vendor will have the ability of the following:

a. Perform the bid or provide the service promptly, or within the time specified, without delay or interference.

b. Have character, integrity, reputation, judgment, experience, and efficiency;

AGENDA ITEM: F Date: May 2, 2016

Exhibit Item: 1

47

City of Saco

Tel: (207) 282-1032

Fax: (207) 282-8209

Email: cheryl.fournier@sacomaine.org

Finance Office

Cheryl Fournier, Finance Director

Saco City Hall

300 Main Street, Saco, ME 04072

c. Quality of performance of previous bids; d. Previous existing compliance by the bidder with the laws and ordinances relating to the

bids; e. Sufficiency of financial resources and ability to perform the bid; f. Quality, availability and adaptability of the supplies, or contractual services to the

particular use required; g. Number and scope of conditions attached to the bid; h. Other factors as may be indicated in writing by the agent that demonstrate that the bid is

not in the City's best interest and does not promote the purposes of this policy.

PAYMENT BOND - A payment bond covers payment of subcontractors, laborers, and materials suppliers associated with the project. Payment bonds are issued for the protection of those supplying labor or materials to a particular bonded project.

PERFORMANCE BOND - An amount of money or insurance bond provided to the City by the bidder to ensure that a specified service or item is provided in accordance with contract provisions. This serves to guarantee that the contractor makes the required payments for labor and suppliers of material.

PERSON WITH AUTHORITY – An employee who has been given authority by the City Administrator or Department Head to act on behalf of the City.

PURCHASING AGENT – The City Administrator or individual assigned authority to perform administration and supervision concerning the purchase of a variety of materials, supplies, services, and equipment for the City

PURCHASING CARD –City owned commercial credit cards which are issued to selected employees who use them to make official purchases of goods and services for the City.

PURCHASE ORDER – The process of setting aside or obligating funds for an expected commodity.

PROFESSIONAL SERVICE – A service provided by an external provider with a specific set of skills that may not be housed within the staff.

REQUEST FOR PROPOSAL – A solicitation most often through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals

RESPONSIVE - To respond to all the requirements of the contract/Bid by not modifying any of the requirements or leaving out any of the requirements.

AGENDA ITEM: F Date: May 2, 2016

Exhibit Item: 1

48

City of Saco

Tel: (207) 282-1032

Fax: (207) 282-8209

Email: cheryl.fournier@sacomaine.org

Finance Office

Cheryl Fournier, Finance Director

Saco City Hall

300 Main Street, Saco, ME 04072

SMALL PURCHASE - Purchase of incidental materials and supplies with a value of less than $3,000 as detailed in section F1A.Regulations Governing Purchase and Sale of Property.

SOLE SOURCE - A sole source vendor is a company or person who sells a product or service that meets the unique needs of the purchaser; generally, sole source means the one and only source for the product or service. Being a municipality, the City can go directly to the distributors for sole source products.

STOCKLESS PURCHASING - A technique providing for the purchase of a commodity or service in quantity at an agreed price ordered by the City, but held by the supplier and delivered to the City when required.

SUPPLEMENTAL APPROPRIATION - An amount authorized by the City Council while the fiscal year is in progress to increase the approved budget for the fiscal year..

SURPLUS PROPERTY - Materials, supplies or equipment that are no longer used by the city or which have become obsolete but has usefulness left which is put up for sale.

UNENCUMBERED BALANCE - The amount of money remaining in a particular appropriation against which there are no outstanding commitments, such as Purchase Orders or contracts.

UNIT PRICE - The amount quoted in terms of so much per agreed or standard unit of product or service. RE: sand sold at a unit price of $10.00 per yard.

VENDOR - The individual or company offering goods or services for sale.

7. PURCHASES EXCEPTIONS

The competitive bidding regulations provided in this section (Purchasing Exceptions) shall not

be applicable:

a. To any specific case determined by the City Administrator or Person with Authority to

be an emergency; in such cases the City Administrator or Person with Authority may

make such immediate purchases that he/she determines are in the best interest of the

City, and are of good value for the City, considering the nature of the circumstances.

b. To purchases of specific parcels of real estate, when the Council determines that a

particular property and no other meet the needs of the City;

c. When the item or service that meets the City’s requirements is available from a single

source only.

AGENDA ITEM: F Date: May 2, 2016

Exhibit Item: 1

49

City of Saco

Tel: (207) 282-1032

Fax: (207) 282-8209

Email: cheryl.fournier@sacomaine.org

Finance Office

Cheryl Fournier, Finance Director

Saco City Hall

300 Main Street, Saco, ME 04072

d. If the purchase is for professional services, and the City Administrator or Person with

Authority is satisfied that the service is a good value for the City, considering, quality,

reliability of past or expected future service or the pre-existing knowledge allows for

an enhanced understanding of the service to be performed.

e. If a public safety vehicle (fire truck, ambulance, police vehicle, public works vehicle

etc) breaks down and work cannot be performed by the City department and the

public safety vehicle is needed to complete work immediately, then no purchase order

or limit will be required.

f. Parks and Recreation purchases for camp trips to purchase tickets and admissions for

the camp program during June, July, and August plus the school vacation week in

February and April will not need purchase orders or dollar limit required.

g. The IT Department will be able to use the purchasing card to purchase software, such

as software licenses, software, and other fees that do not send a disc when

purchased online.

AGENDA ITEM: F Date: May 2, 2016

Exhibit Item: 1

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WORKSHOP ITEM: C

AGENDA ITEM: G DATE: May 2, 2016

MEETING ITEM COMMENTARY

AGENDA ITEM: (First Reading) Intelligent Controls, Inc. (now known as Franklin Fueling) TIF Assignment, Amendment Modification, and Extension

STAFF RESOURCE: William J. Mann, Economic Development Director

COUNCIL RESOURCE: Councilor Alan Minthorn

BACKGROUND: In 2008 a TIF was created for the above referenced firm on the commercial real estate locate at 34

Spring Hill Road. A couple of years ago as part of a corporate restructure the manufacturing that was done at this location

was consolidated out of state. Franklin has 20+ individuals, mostly engineers who remain working at this facility. These

employees would like to stay; however, given that 2/3rds of the building is vacant, the parent company put the building up

for sale with the intent of relocating the engineering team to smaller space locally. A local manufacturer, Maine Textiles

International, Inc. d/b/a Saco River Dyehouse with 15+ employees is in need of manufacturing space to house new

production equipment and was looking to relocate. A deal has been struck with an investor buyer White Rabbit LLC,

which is owned by Kevin Bunker, Manager and Traverse Fournier, Member, that will lease a portion of building back to

Franklin Fueling - 11k sq. ft. of offices for its engineering staff and the remaining 23k sq. ft. of manufacturing space will be

leased back to Maine Textiles International, Inc. d/b/a Saco River Dyehouse. Maine Textiles will have a first right of

refusal option to purchase the building.

The prospective purchaser has asked that the TIF be amended to extend it for 10 years. They have indicated that there is

approximately $250,000 in fit-up, equipment set-up, and office build out as well as electrical infrastructure upgrades needed

to accommodate Maine Textiles.

City Staff is proposing a modified change to the TIF, which will need both Council and State of Maine approval, this

change accommodates the request of the purchaser, protects the existing jobs, moves Maine Textiles into this space, and

provided greater flexibility for the City in using its share of the TIF Revenue Stream (see attached sheet Summary of TIF

Modifications Proposed).

The purchaser has requested that the City approval be expedited as they need to close in early June (currently planned for

June 2nd). This closing date is necessary so Saco River Dyehouse can accept deliver of significant equipment being shipped

from Italy which is planning on arriving the following week (the week of June 6th) here in Maine. Accordingly, we are

asking that the initial workshop and first reading be done on May 2nd. To be followed by a Public hearing on May 16th and

second workshop/2nd and final reading on May 23rd.

HISTORY: City Council Approved TIF in 2007

EXHIBITS: 1. Summary of TIF Modifications Proposed 2. City of Saco TIF Guidelines 3. Tax Increment Financing Overview 4. Draft TIF Amendment being drafted by City’s TIF Counsel (not currently part of packet -

will be forwarded as soon as it is available).

STAFF RECCOMENDATION: Staff recommends approval.

SUGGESTED MOTION: “Be it ordered that the City Council does hereby ordain and approve the First Reading of the requested Assignment and Assumption of Credit Enhancement Agreement between the City of Saco and Intelligent Controls, Inc. (now known as Franklin Fueling) to White Rabbit, LLC, provided that White Rabbit, LLC accepts the modified terms as set forth in the Amended Credit Enhancement Agreement and is subject to final approval by the State of Maine Department of Economic and Community Development.”

“I move to approve the Order”

51