Town Council Minutes 4/26/2004

MINUTES

                               Town Council Chambers - 290 Tuttle Road
                                         Monday, April 26, 2004

        7:00 p.m.  Call to Order

I.      APPROVAL OF MINUTES

a)      April 12, 2004

              VOTE:    UNANIMOUS 5-0  

II.     MANAGER'S REPORT

III.    PUBLIC DISCUSSION

IV.     LEGISLATION AND POLICY
  

it could be disastrous.  Manager Shane explained the Palesky proponents claim their proposal will result in a 17% reduction; or a 2.7 million dollar loss in revenues.  However, Maine Municipal Association calculates a loss of between 4 and 8 million dollars to the Town of Cumberland. Manager Shane commented on the conflicting numbers, noting that the Palesky numbers identify much higher property value numbers.  The result, Manager Shane explained, is the town will need to revalue its properties once again.  The school and town will equally share in the $4 million loss.  A $2 million cut would mean, for example, the institution of a pay-per-bag plan, the elimination of the CIP, total elimination of town paving, town hall maintenance, fire equipment only through bonding and program cuts.  It will likely result in the elimination of 12 full-time position, a significant impact to the community.  It will certainly be a whole different way of delivering services to our community including reduced office hours; the town may not plow a street in the same time; rescue, and fire and police departments would be scaled back.  Some duties may be regionalized, however not all have that flexibility.  The next budget year will be impacted by the proposed tax cap and many people feel that only chaos will cure our tax problems.  Chairman Porter remarked that he believes the scenario raised by the Manager may be the best case scenario.  Manager Shane concurred, stating most people have no idea the significant impact that this proposal will have on town services.  Finance Chairman Stiles concluded by thanking the Town Manager for a super job and added that copies of the proposed budget are available for the public.

04  046.       To authorize the Town Manager to enter into a contract with the Habitat for Humanity

by the Freeport Housing Trust.  It will serve as a Partnership Covenant for the Cumberland Steering Committee and the Habitat for Humanity homeowner.  Manager Shane noted that as a more efficient means of listing specific details, an attachment will be added rather than inserting such details in the agreement itself. He then reviewed detail item number 7 regarding a silent third mortgage or promissory note which will ensure that the property remains affordable to the homeowner.  The Town is prepared to enter into this agreement with Habitat for Humanity to deed one lot for the construction of a Habitat home located at the end of Greely Road Extension.  The construction of a home will be subject to the successful placement of a well.  The access road will be surveyed and built over the summer.

        The Manager also provided a conceptual layout of the property and home and deferred to Justin Leblanc and Steve Bolton, who were present to answer questions and address detail number 7. Mr. Leblanc explained that, in a normal circumstance, the mortgage and second note is given to the family at cost for 20 years as a no interest note; in addition to a second note representing the difference between the sale price and the appraised value. Mr. Leblanc explained this is done So they cant flip it on day two and get the equity out of it.  A habitat family gets the benefit of any appreciation after the fact and this agreement states that the family will get the appreciation only as it relates to the structure, and not the land.  Any appreciation due to the land value on the day of the sale will be paid back to the town based on the value of the land. Manager Shane added that this would allow the Town to use that money for any future projects and Chairman Porter noted this is a way to encumber the property and reduce the property value, adding the value still appreciates, but the sale is the issue, so that the home is affordable.  Chairman Porter asked whether the Habitat property will be assessed at full value.  Town Assessor, Bill Healey, replied that the value will be set at market value and the silent second will be disregarded; however, it does not change the value for tax purposes.  Mr. Leblanc added that the goal is to encourage people not to turn around and sell their Habitat home.  Councilor Moriarty asked at resale, who pays what to whom?  Mr. Leblanc responded that Habitat for Humanity has the right of first refusal. If Habitat for Humanity puts another qualified family in the home, the restriction stays on the land and moves forward. The Town only has issue when Habitat for Humanity doesnt exercise its right of first refusal and the Habitat for Humanity family sells it to someone else. The amount not paid on the first note will be paid back to Habitat for Humanity, the silent second note would also be paid back, and the third note will cover the difference in the land value on the date of the sale and the value on the date of the closing. The appreciation of the home, alone, covers the first and second note. Chairman Porter asked if the cap of 20 years is a requirement for the agreement. Mr. Leblanc responded that this language is based on the Freeport agreement and is a starting point to find a point thats agreeable to everybody. Councilor Kuntz requested that paragraph 7 be pulled from the discussion to be dealt with at a later date so that the Council will be more comfortable with it.  Paragraph 7 states that At the time the applicable Town Documents are executed and delivered for recording in the Cumberland County Registry of Deeds, TOWN shall execute and deliver to HABITAT a Release and Termination of Reversionary Rights in form and substance identical to that attached hereto as Exhibit A.

04  047        To appoint election clerks.

has received them from the Cumberland Democratic and Republican parties.

  04  048.     To set a date to hold a public hearing to consider and act on a request for a change to the
               speed limit along a portion of Greely Road.

         Motion by Councilor Moriarty to set the public hearing date as May 10, 2004;
         Seconded by Councilor Kuntz
         VOTE:         Unanimous 5-0

04  049.       To set a date to hold a public hearing to consider and act on an amendment to the
               Minor Subdivision Ordinance related to sprinklers.

04  050.       To set a public hearing date to consider and act on an amendment to Section 121
               of the Cumberland Shellfish Ordinance related to its duration period.

annual renewal of this ordinance as is presently stated in the ordinance. He recommended the ordinance be revised to eliminate the current expiration provision.

V.      NEW BUSINES

Councilor Storey  none
Councilor Kuntz  none
Councilor Porter  none
Councilor Moriarty  requested an update on the Stone Wharf float and tie-up assignments and asked about scheduling a workshop with the Islands Committee?  Manager Shane suggested May 24^th.  Councilor Moriarty commented he would prefer to see the itemization of the council agendas place the Managers Report back at the beginning of each meeting because more people tend to be listening and watching.  It was agreed this item will be moved back to the beginning of the agenda
Councilor Stiles -  none

VI.     MANAGERS REPORT

at the Moss Side cemetery.  A majority of the trees being cut were damaged during the ice storm. Jims Tree Service has done an outstanding job and it is now complete.  Some large trees were also removed from the Foreside Cemetery as well.  Work will occur on headstones this year as well.  Tie-up spaces will be allocated beginning this Thursday. That process is going very well.  I dont fear we will be out of space.  The commercial float is connected as of Friday and an additional float is under repair. This year will be our transition year; flexibility is the key word.  The free tie-up space will be eliminated as early as the beginning of next month.  He anticipates a workshop meeting between the Islands Committee and the Town Council on May 24^th to talk about where we go in the future.  We still have not made a determination on property use.  The intention was to look at senior and/or affordable housing.  Town Planner Carla Nixon is working with a group of planning students to study use options.

VII.    EXECUTIVE SESSION  Hardship Abatement.

Respectfully submitted,


Nadeen Daniels, CMC
Town Clerk