STATE OF MAINE. M:\2017\cm_2017_05_08.doc 5/19/2017 Page 1 of 32

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1 COUNTY OF YORK STATE OF MAINE CITY OF SACO I. CALL TO ORDER On Monday, May 8, 2017 at 6:31 p.m. a Special Council Meeting was held in the City Hall Auditorium. II. RECOGNITION OF MEMBERS PRESENT Mayor Roland Michaud recognized the members of the Council and determined that the Councilors present constituted a quorum. Councilors present: David Precourt, Roger Gay, William Doyle, Kevin Roche, Alan Minthorn, Eric Cote and Nathan Johnston. City Administrator Kevin Sutherland was also present this evening. III. PLEDGE OF ALLEGIANCE IV. GENERAL SACO POLICE ADDICTION FORUM The Saco Police Addiction forum will be held on Thursday, May 11, 2017 in the Saco City Hall Auditorium from 6-8 p.m. This will be a Town Hall forum to discuss and answer questions relating to drug addiction, available treatment and education and awareness. The panel will consist of Meghan Lambert-Irish of the Saco Biddeford Opioid Outreach, Bill Patterson from Coastal Health Communities Coalition and Project Alliance, Jim Godbout Biddeford Saco Rotary member, Bill King the York County Sheriff, Police Chief Raynald Demers and Saco Bay Rotary Club Community Project Alliance. V. PUBLIC COMMENT Don Pilon, 1 Meadow Lane I attended the Council meeting in Biddeford last week and listened to their comments to get a feel of how the Biddeford Council was understanding the terms and conditions of the contract. My takeaway was there is a misunderstanding between the 2 councils. When I was here with the Saco Council I heard it mentioned it was a 60 trial period. Biddeford Council didn t mention anything about a 60 day trial period or clause. I read the contact again and the 60 day refers to a notification period so if either town wants to terminate the contract it is a 60 day notification period of termination. But this is a 1 year contract so once you sign the contract that sets the clock for a 1 year period. What happens after the 1 year period? Does the Finance Officer become a free agent? Does it now become a bidding war between Saco and Biddeford as to who the officer belongs to after that period? Lindsey Pilon, 1 Meadow Lane Representing the Dyer Library & Saco Museum. We are asking for $10,000 to provide library and museum employees with a 1.5% cost of living increase. Those employees provide free services to Saco residents and many others as do city employees. For that reason when gathering data on reasonable and equitable pay structures for our employees. Generally our wages and salaries are much less than those of city employees. We employ people with specialized skills and from a recruitment and retention standpoint, would you advise your spouse, son or daughter to work for a organization that pays you less but also does not offer a small cost of living increase each year. Our employees also do not get any step increases. The health benefits offered by the library to the employees are not nearly as comprehensive as the cities. We currently do not offer any retirement plan to full time employees. We have 7 full time employees. Barbara Colman, 45B Stockman Avenue Ms. Colman handed out a document from the FY2016 Budget book and referred to the notification on the back to understand what she was going to speak about tonight. This evening a clarification regarding a dollar amount provided during public comment on April 18 th in regards to the city and school budget needs to be addressed. The statement was expenditures for the city increased by $1.9 million and the school by $2 million over the current year. This totals over $4 million dollars. The amount provided was incorrect. The statement regarding the increase of both the city and school should have been $1,953, to the taxpayers. Missing from the amount was 2 additional values relating to the city leasing and purchasing which I approximate at $55,000. Documentation from the FY2016 Budget book shows at the end the following statement: The net amount to be raised for taxes for the municipality is x dollars and the amount to be raised by the School Dept. is x dollars and the amount for the county is x dollars. The School Dept. budget was included as part of the city budget. The Charter requires a separate presentation of the School, City and County Budget. Ms. Colman referenced additions and deletions and other respective amounts that influence the 2017 budget. As a result additional M:\2017\cm_2017_05_08.doc 5/19/2017 Page 1 of 32

2 funds were already built into respective department budgets. There were numerous attempts from Saco Citizens for Sensible Government to correct 2 errors. Adding the excess revenue during the audit process of approximately $900,000 and take the difference between the proposed 2018 budget with the schools and in the fiscal year 2016 with the school amount, that comes to $3,061,902. The total increase in 2 years is $3,961,902 and not the $4,000,500. Does this indicate an issue of comingling various items, a practice that needs to be stopped to have a realistic discussion regarding the budget this evening. Will we be surprised again when the auditors present it again next year. Shephen Shiman, - Mr. Shiman is in support of the RAD s for the library. I can t think of a single thing in the community that brings people together more than the library. It is the unity in the community. There are allot of volunteers at the library and that is great. They raise allot of money and they do a great job of managing the money they have. But the cities contribution is very important especially when it comes to salaries. People can t work forever without reasonable salaries and certainly I believe they should be on par with the city workers which they are not. Angela Coulombe, 42 Washington Ave Ms. Coulombe hopes that the city will approve the RAD for the library. I feel like Stephen does that it is a vital part of our community. It plays a huge role in helping to educate children that we have in Saco. The staf there do an amazing job partnering with the schools and providing resources that the students don t have. I think that the employees give 110% of themselves all the time to make our library one of the most outstanding features the city has. Faith Hatter Ms. Hatter moved to Saco 5 years ago and has also been volunteering for 5 years at the library. She expressed her appreciation for what the library does for any citizen that lives in Saco. We have meeting rooms, programs for the children in the morning, computer room, reading room and of course any book you could want. The children s library is just beautiful. I have a great love for libraries. I would ask kindly that you change your mind about how we are going to get the taxes done. There is quite a bit of money involved but I would like to see that not lowered so that we can have the money we should have to offer everything we can to our citizens. VI. VII. COSENT AGENDA AGENDA A. ADOPTION OF THE FISCAL YEAR 2018 WATER RESOURCE RECOVERY DEPARTMENT BUDGET The Fiscal Year 2018 operating budget for the Water Resource Recovery Division is $2,409,572 which is supported by a sewer user fee rate of $4.68 per unit. There is no proposed sewer user fee increase included in the FY2018 Budget. At the rate of $4.68 per unit, the average bill will be $ per year, with no increase. In Fiscal Year 2018, there is no use of Fund Balance budgeted. The Council discussed this item at Workshop on April 10, Councilor Cote moved, Councilor Doyle seconded Be it Ordered that the City Council move to adopt an appropriation order for the adoption of the Fiscal Year 2018 Water Resource Recovery Division budget for the City of Saco, Maine as follows: Approve gross expenditures of $2,409,572; to be offset by $2,418,220 in anticipated revenues and other credits, which represents no increase in the sewer user fee rate of $4.68. Further move to approve the Order. The motion passed with seven (7) yeas. Analysis of Water Resource Recovery Division Sewer User Fee FY 2018 M:\2017\cm_2017_05_08.doc 5/19/2017 Page 2 of 32

3 B. ADOPTION OF THE FISCAL YEAR 2018 SCHOOL DEPARTMENT BUDGET The School Board recommended FY2018 budget of $36,197,877 plus $114,803 for Saco s portion of the Adult Education would be a tax rate increase of $1.18, if the school department budget is adopted as presented. The FY2017 budget was: $34,059,891. FY2018 Tax Levy (School & Adult Ed) $24,711,375 FY2017 Tax Levy (School & Adult Ed) $22,214,912 Net Increase $2,496,463 Councilor Roche moved, Councilor Johnston seconded Be it ordered that the City Council approve the budget adoption for the Saco School Department FY2018 Cost Center Summary Budget of $36,197,877 plus $114,803 for the Saco s portion of Adult Education. Further move to approve the order. Amendment #1 - Councilor Roche moved, Councilor Johnston seconded Be it ordered that the City Council approve a decrease to the FY 2018 Saco School Budget due to insurance savings in the amount of $286,083 for the Regular Instruction Cost Center, $96,175 for the Special Education Instruction Cost Center, $26,842 for the Student and Staff Support Cost Center, $7,666 for the System Administration Cost Center, $11,680 for the School Administration Cost Center, $12,285 for the Transportation Cost Center, and $8,882 for the Facilities Maintenance Cost Center for a total reduction of $449,613. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #2 Councilor Minthorn moved, Councilor Doyle seconded Be it ordered that the City Council approve a decrease to the FY 2018 Saco School Budget System Administration and School Administration by $400,000 total ($200,000 for each cost center). The motion failed with two (2) yeas and five (5) nays Councilors Johnston, Cote, Roche, Gay and Precourt. Amendment #3 Councilor Roche moved, Councilor Gay seconded to cut 1 teacher position through nutrition only $75,000 from Regular Instruction Teachers, $81,000 out of Technology (Data Manager Position), and the remaining $44,000 out of System Administration cost center. The motion passed with five (5) yeas and two (2) nays Councilors Johnston and Cote. Amendment #4 Councilor Roche moved, Councilor Doyle seconded decrease the School Administration Budget by $131, (Burns School Principal). The motion failed with three (3) yeas and four (4) nays Councilors Roche, Minthorn, Cote and Johnston. Councilor Roche moved, Councilor Johnston seconded Be it ordered that the City Council approved the budget adoption for the Saco School Department FY2018 Cost Center Summary Budget of $35,548,264 + $114,803 for Saco s portion of the Adult Education. Mayor Michaud called for a vote on the main motion as amended. The motion passed with seven (7) yeas. M:\2017\cm_2017_05_08.doc 5/19/2017 Page 3 of 32

4 C. ADOPTION OF THE FISCAL YEAR 2018 MUNICIPAL BUDGET On January 17, 2017, the Saco City Council gave the City Administrator a directive for the Fiscal Year 2018 municipal budget. On March 20, 2017, the City Administrator presented a recommended FY 2018 budget that met the Council directive. The Council discussed the budget during budget workshops on March 27 th, April 3 rd, and April 10 th. The Public Hearing was held on April 18 th. The Council held an additional budget workshop on May 1 st. Councilor Doyle moved, Councilor Minthorn seconded Be it Ordered that the City Council move to approve an appropriation order for the adoption of the Fiscal Year 2018 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 $25,784,808 ($51,779,916 less School $21,711,375 and County $1,283,733) in municipal expenditures, $23,839,322 in departmental appropriations, $100,000 in overlay, $819,182 in TIF transfers, and $1,026,304 in capital improvements for municipal operations; to be offset by $25,784,808 in anticipated revenue and other credits, which represents $8,319,605 in anticipated municipal revenues, and other credits of $720,833 from the Ambulance Fund and the $1,000 from the Camp Ellis Fund: and thereby raising gross taxes of $16,743,370 and further ordering that the amounts set in the following attached schedule titled CITY OF SACO FY2018 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 as authorized under Section 6.04 of the Charter of the City of Saco, Maine. Further move to approve the order. Amendment #1 - Councilor Precourt moved, Councilor Gay seconded to remove the full-time recreation position from Parks and Recreation Department (RAD# 1827), so therefore Be it ordered that the City Council approve an expenditure decrease to the City of Saco FY2018 City Budget for the Parks and Recreation Department in the amount of $43,554 and a revenue decrease to the City of Saco FY2018 City Budget for the Parks and Recreation M:\2017\cm_2017_05_08.doc 5/19/2017 Page 4 of 32

5 Department in the amount of $20,000. Further move to approve the Order. The motion failed with zero (0) yeas and seven (7) nays. Amendment #2 - Councilor Roche moved, Councilor Minthorn seconded that $23,554 come out of the Parks and Recreation salaries and this gets funded by $23,554 from the Coastal Waters Commission Parking Fund. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Amendment #3 - Councilor Precourt moved, Councilor Gay seconded to remove the additional funding in the Parks and Recreation Department that would bring the expenditure budget in line with historic actual (RAD# 1831), so therefore Be it ordered that the City Council approve an expenditure decrease to the City of Saco FY2018 City Budget for the Parks and Recreation Department in the amount of $75,822 and a revenue decrease to the City of Saco FY2018 City Budget for the Parks and Recreation Department in the amount of $38,491. Further move to approve the Order. The motion failed with three (3) yeas and four (4) nays Councilors Doyle, Minthorn, Cote and Johnston. Amendment #4 - Councilor Doyle moved, Councilor Gay seconded to return Saco Main Street to the prior year amount (maintenance of effort) using the Economic Development Fund (RAD# 1841), so therefore Be it ordered that the City Council approve a use of the Economic Development Fund in the City of Saco FY2018 City Budget for Saco Main Street in the amount of $1,003. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #5 - Councilor Precourt moved, Councilor Doyle seconded to remove the funding for the Fire Department Lifepak equipment as Council recently approved a budget amendment to pay for this in the current fiscal year (RAD# 1822), so therefore Be it ordered that the City Council approve a decrease to the City of Saco FY2018 City Budget for the Fire Department in the amount of $45,470. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #6 Councilor Johnston moved, Councilor Doyle seconded to pay for the Fire Department s Comprehensive report with the Ambulance Fund (RAD# 1824), so therefore Be it ordered that the City Council approve a use of the Ambulance Fund in the City of Saco FY2018 City Budget for the Fire Department in the amount of $30,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #7 Councilor Johnston moved, Councilor Minthorn seconded to wait and see if the Audio and Visual enhancements for City Hall Auditorium can be funded by the Spectrum re-negotiation (RAD# 1825), so therefore Be it ordered that the City Council approve a decrease to the City of Saco FY2018 City Budget for the Informational Technology Department in the amount of $15,000. Further move to approve the Order. The motion failed with two (2) yeas and five (5) nays Councilors Doyle, Roche, Minthorn, Cote and Johnston. Amendment #8 Councilor Precourt moved, Councilor Doyle seconded to upgrade the MUNIS system to bring the School Department on the same system (RAD# 1803), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Finance Department in the amount of $60,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #9 Councilor Precourt moved, Councilor Johnston seconded to approve a Facilities Manager Position in Administration which is supported with savings in utility budget lines (RAD# 1805), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Administration Department in the amount of $93,600 and an expenditure transfer of -$93,600 (a net of $0). Further move to approve the Order. The motion passed with five (5) yeas and two (2) nays Councilors Doyle and Cote. Amendment #10 Councilor Precourt moved, Councilor Minthorn seconded to create a third full-time employee position in the Building Inspection Department (RAD# 1806), so therefore Be it ordered that the City Council approve an expenditure increase to the City of Saco FY2018 City Budget for the Building Inspection Department in the amount of $79,132 and a revenue increase to the City of Saco FY2018 City Budget for the Building Inspection Department in the amount of $26,000. Further move to approve the Order. The motion passed with seven (7) yeas. M:\2017\cm_2017_05_08.doc 5/19/2017 Page 5 of 32

6 Amendment #11 Councilor Precourt moved, Councilor Gay seconded to support the continuation of the Senior Program in its own account line (RAD# 1812), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget in Contingency in the amount of $30,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #12 Councilor Doyle moved, Councilor Minthorn seconded to move the half of an Economic Development staff member to be solely in the Planning Department (RAD# 1813), so therefore Be it ordered that the City Council approve a no impact move to the City of Saco FY2018 City Budget of $22,019 from the Economic Development to the Planning Department, a net impact of $0. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #13 Councilor Doyle moved, Councilor Johnston seconded to add an Economic Development Associate, pending state approval of the Downtown Development District to be supported by Economic Development Fund (RAD# 1814), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Economic Development Department in the amount of $97,164 which would be supported with by the Economic Development Fund. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Amendment #14 Councilor Doyle moved, Councilor Minthorn seconded to support the entirety of the Economic Development Department with the Economic Development Fund (RAD# 1815), so therefore Be it ordered that the City Council approve use of the Economic Development Fund to the City of Saco FY2018 City Budget for the Economic Development Department in the amount of $210,102. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Amendment #15 Councilor Doyle moved, Councilor Johnston seconded to create a façade program in the Economic Development department supported by the Economic Development Fund, pending state approval of the Downtown Development District (RAD# 1817), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Economic Development Department in the amount of $50,000. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Amendment #16 Councilor Precourt moved, Councilor Gay seconded to recognize Enterprise rental car revenue in the FY18 budget (RAD# 1821), so therefore Be it ordered that the City Council approve a revenue increase to the City of Saco FY2018 City Budget for the Finance Department in the amount of $250,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #17 Councilor Doyle moved, Councilor Johnston seconded to recognize the increase in the TIF District expenditures. This has no impact on the tax rate, it simply recognizes the expenditure increase as well as the additional property tax revenue earmarked for TIF districts (RAD# 1826), so therefore Be it ordered that the City Council approve a net $0 recognition of a revenue and expenditure increase to the City of Saco FY2018 City Budget for the Interfund Transfer and Property Tax line in the amount of $500,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #18 Councilor Cote moved, Councilor Gay seconded to restore hazard tree pruning and removal in the Parks and Recreation Department (RAD# 1828), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Parks and Recreation Department in the amount of $14,445. Further move to approve the Order. The motion passed with five (5) yeas and two (2) nays Councilors Precourt and Doyle. Amendment #19 Councilor Cote moved, Councilor Doyle seconded to support the 1.5% cost of living adjustment for the Dyer Library (RAD# 1839), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Dyer Library in the amount of $10,000. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Precourt. Amendment #20 Councilor Cote moved, Councilor Doyle seconded to support the funding for a retirement program for full-time staff at the Dyer Library (RAD# 1840), so therefore Be it ordered that the City Council M:\2017\cm_2017_05_08.doc 5/19/2017 Page 6 of 32

7 approve an increase to the City of Saco FY2018 City Budget for the Dyer Library in the amount of $17,500. Further move to approve the Order. The motion passed with six (6) yeas and one (1) nay Councilor Precourt. Amendment #21 Councilor Precourt moved, Councilor Doyle seconded to use the Economic Development Fund to pay for Saco Main Street s River Jam funding (RAD# 1842), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for Saco Main Street in the amount of $5,000 paid for with the Economic Development Fund. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #22 Councilor Precourt moved, Councilor Johnston seconded to use the Economic Development Fund to pay for Saco Main Street s assistance in Economic Development work in the Downtown (RAD# 1843), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for Saco Main Street in the amount of $11,400 paid for with the Economic Development Fund. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #23 Councilor Johnston moved, Councilor Doyle seconded to use Unassigned Fund Balance for a FEMA approved re-mapping of the Sawyer Brook (RAD# 1808), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Building Inspection Department in the amount of $15,000. Further move to approve the Order. The motion passed with seven (7) yeas. Amendment #24 Councilor Precourt moved, Councilor Gay seconded to use Unassigned Fund Balance for state mandated printers (RAD# 1819), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Finance Department in the amount of $4,000. Further move to approve the Order. Amendment #25 Councilor Roche moved, Councilor Doyle seconded to eliminate the intern program in Administration (new request), so therefore Be it ordered that the City Council approve a decrease to the City of Saco FY2018 City Budget for the Administration Department in the amount of $20,000. Further move to approve the Order. The motion failed with zero (0) yeas and seven (7) nays. Amendment #26 Councilor Doyle moved, Councilor Roche seconded to Be it ordered that the City Council approve a decrease to the City of Saco FY2018 City Budget for the Administration Department in the amount of $12,000. Councilor Minthorn suggested a friendly amendment to reduce Councilor Doyle s $12,000 and make it $8,000 to cover the 3 positions the city has committed to. Councilor Doyle did not accept the friendly amendment. Mayor Michaud called for a vote on Amendment #26. The motion failed with three (3) yeas and four (4) nays Councilors Precourt, Minthorn, Cote and Johnston. Amendment #27 Councilor Cote moved, Councilor Johnston seconded to Be it ordered that the City Council approve a decrease to the City of Saco FY2018 City Budget for the Administration Department in the amount of $8,000 to leave $12,000 in the program. The motion passed with five (5) yeas and two (2) nays Councilors Precourt and Doyle. Amendment #28 Councilor Roche moved, Councilor Gay seconded to reduce the capital program for fiscal year 2018 and ask the Capital Planning Committee to recommend which item to reduce and add it to the bond proposal they ll recommend for a November ballot and make part of fiscal year 2019 (new request), so therefore Be it ordered that the City Council approve a decrease to the City of Saco FY2018 City Budget for the Capital Program in the amount of $100,000. Further move to approve the Order. The motion passed with four (4) yeas and three (3) nays Councilors Precourt, Minthorn and Cote. Amendment #29 Councilor Roche moved, Councilor Gay seconded to put money aside for legal fees in order to prepare for a lawsuit against the Army Corp of Engineers (new request), so therefore Be it ordered that the City Council approve an increase to the City of Saco FY2018 City Budget for the Solicitor Budgeting Unit in the amount of $25,000 from the unassigned fund balance projected for next year and put it into a reserve fund to M:\2017\cm_2017_05_08.doc 5/19/2017 Page 7 of 32

8 prepare for action with the Federal Government Army Corp. Further move to approve the Order. The motion passed with four (4) yeas and three (3) nays Councilors Precourt, Doyle and Minthorn. Amendment #30 RAD # Councilor Roche moved, Councilor Johnston seconded to take RAD #1807 $25,000 for the court ordered Blight Program out of the budget and not reserve it but to take the money out of contingency. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Amendment #31 RAD #1810 Building Maintenance Fund Councilor Precourt moved, Councilor Minthorn seconded to include RAD #1810 for the repair and replacement of various components for $4,500. The motion passed with seven (7) yeas. Amendment #32 Councilor Minthorn moved, Councilor Gay seconded to approve the City Clerk s request for a part-time employee to provide office coverage for $8,000 with the funds to go into account # The motion passed with seven (7) yeas. Amendment #33 Councilor Minthorn moved, Councilor Doyle seconded use the Economic Development Fund to cover the cost of the Main Street $39,603. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Amendment #34 Councilor Minthorn moved, Councilor Doyle seconded to use the Economic Development Fund to cover the cost of the Chamber and Saco Biddeford Economic Development Commission for $14,000. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Amendment #35 Councilor Precourt moved, Councilor Roche seconded to cut $66,000 from the lease purchase line and include trade in values. The vehicles include: 1 trailer, chipper, 1 Fire Dept. personal vehicle and 1 dump truck. Amendment to Amendment #35 Councilor Roche moved, Councilor Gay seconded to reduce the reduction from $66,000 to $25,000 from the lease purchase line and include trade in values. The motion failed with two (2) yeas and five (5) nays Councilors Precourt, Doyle, Minthorn, Cote and Johnston. Mayor Michaud called for a vote on main Amendment #35. The motion failed with one (1) yea and six (6) nays Councilors Gay, Doyle, Roche, Minthorn, Cote and Johnston. Amendment #36 Councilor Roche moved, Councilor Johnston seconded to approve $23,000 for one-time only out of reserves to preserve our records under the Clerk s domain. The motion passed with seven (7) yeas. Amendment #37 Councilor Roche moved, Councilor Gay seconded to increase revenue in line # Motor Vehicle excise tax by $200,000. The motion passed with seven (7) yeas. Amendment #38 Councilor Gay moved to have the Fire Dept. truck taken out of lease purchasing and use the ambulance revenue fund for $9,966. Due to the lack of a second the motion was not considered. TABLED Councilor Minthorn moved, Councilor Gay seconded to table voting on the main motion with amendments to allow time for staff to figure the dollar amounts. The motion passed with seven (7) yeas. See page 30 item #C for the final budget motion and vote. D. ADOPTION OF THE AMENDED FEE SCHEDULE FOR FISCAL YEAR 2018 The City Council establishes and approves all fees and charges required by ordinances or policies in the City of Saco. This includes: permits, licenses, approvals, and applications, as well as fees and charges collected by the City of Saco that are authorized by state law or require the city to set the amounts of such fees and charges. The Council may establish any new fees or charges that the Council deems necessary or appropriate to offset the cost of operating programs, delivering services, or administering any ordinances or policies. Those fees shall be included in the fee schedule and updated on an as needed basis. M:\2017\cm_2017_05_08.doc 5/19/2017 Page 8 of 32

9 Councilor Gay moved, Councilor Minthorn seconded Be it ordered that the City Council approve the amended fee schedule for Fiscal Year Further move to approve the Order. The motion passed with seven (7) yeas. M:\2017\cm_2017_05_08.doc 5/19/2017 Page 9 of 32

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19 E. FISCAL YEAR 2018 STATE REQUIRED COUNCIL ACTION The State of Maine requires two separate actions by the Municipal Officers after the budget is passed. Section 5682 of Title 30-A requires that the City may receive State funds only on the affirmative vote of the Council to accept those funds. The numbers in the motion are the estimates from the budget. Total accuracy on the estimates is not a requirement, only that acceptance of the funds is authorized. The City Clerk must certify the vote and return the information to Augusta before July 1, M:\2017\cm_2017_05_08.doc 5/19/2017 Page 19 of 32

20 Councilor Precourt moved, Councilor Doyle seconded Be it Ordered that the City Council authorize the City Treasurer to accept, on behalf of the City of Saco, the following categories of state funds and their estimated amounts for the fiscal year which are provided by the Legislature of the State of Maine to the City of Saco, and which action is required under Title 30-A MRSA Municipal Revenue Sharing $ 1,065,422 Local Road Assistance $ 220,632 Tree Growth Reimbursement $ 35,000 Veterans Exemption Reimbursement $ 11,745 General Assistance Reimbursement $ 90,258 Homestead Exemption Reimbursement $ 752,000 And other such state revenues, grants, or reimbursements which may become available to the City of Saco from the State of Maine, from time to time. Further move to approve the order. The motion passed with seven (7) yeas. F. FISCAL YEAR 2018 PROPERTY TAX DUE DATES AND INTEREST RATES Under Title 36, MRSA, Section 505, a municipality may, by vote, determine the interest rate that shall apply to delinquent taxes committed during the taxable year until those taxes are paid in full. The Treasurer of the State of Maine determined that the maximum rate of interest that can be charged per Title 36, MRSA, Section 505 (4) for calendar year 2017 is 7.0%. Therefore, for the FY2018 tax commitment, the maximum rate allowed is 7.0%. As a normal course of business, the City has adopted the maximum rate as its rate. Under Title 36, MRSA, Section 506, a municipality may set the interest rates and authorize the prepayment of taxes. Therefore, we are requesting that City Council set the interest rate of 8% for the overpayment of the FY2017 taxes and authorize the application of any prepayment of taxes directly to the tax account as they are received without having to pay interest on these prepayments. The tax payment due dates are as follows: First half due: 8/11/17 (interest accruing from 8/14/17); Second half due: 2/9/18(interest accruing from 2/12/18); Amendment to EZ Pay due date: Continuation of the EZ Pay program for fiscal year 2018 with 8 monthly payments starting August 15, 2017 and ending March 15, Councilor Minthorn moved, Councilor Doyle seconded Be it ordered that the City Council set the interest rate for delinquent FY2018 property taxes at 7.0%, set the refund interest rate of FY2017 tax payments at 8.0% and authorize the tax collector to accept prepayment of taxes not yet committed without having to pay interest on these prepayments, and to establish the due dates for tax payments as follows: payment for the first half due on August 11, 2017 with interest occurring from August 14, 2017, and payment for the second half due on February 9, 2018 with interest accruing from February 12, Further move to approve the Order. The motion passed with seven (7) yeas. G. RECONFIRM THE AUTHORITY TO APPLY TAX PAYMENTS TO THE OLDEST OUTSTANDING TAX On October 6, 1986, the City Council approved a tax collection policy which allowed the Treasurer or the Tax Collector to apply tax payments received from an individual to the oldest unpaid tax bill first. We would like to reconfirm the existing policy with the onset of a new tax year. Tax Collection Policy The municipal officers of the City of Saco have approved the request of the municipal treasurer and the tax collector that any tax payment received from an individual as payment for any property tax, personal property, and sewer user fees be applied against outstanding or delinquent taxes due on that property in chronological order beginning with the oldest unpaid tax bill. Taxes may not be applied to a period for which abatement request or appeal has not been resolved unless approved in writing by the taxpayer. Also, on the 30-day lien notice or day foreclosure notice, a statement will be added indicating the City s tax collection policy. M:\2017\cm_2017_05_08.doc 5/19/2017 Page 20 of 32

21 Councilor Johnston moved, Councilor Minthorn seconded Be it Ordered that the City Council accept the tax collection policy as presented pursuant to title 36 MRSA Section 906. Further move to approve the Order. The motion passed with seven (7) yeas. H. MORATORIUM ON MARIJUANA GROWING OPERATIONS (FIRST READING) The City of Saco has experienced an influx in the number of permits being requested by medical marijuana caregiver facilities. There are two zones in the Industrial Park that permit medical marijuana caregiver facilities as reflect in Zoning Ordinance Article 4, Sections and These growing operations draw a significant amount of electricity which can impact electrical availability for other businesses in the area. In order to best support all businesses in that zone, we are requesting a six month (180 day) moratorium to allow us to collaborate with the power company to address these concerns and find a solution. Councilor Doyle moved, Councilor Johnston seconded The City Council hereby ordains and approves the first reading for the 180 day moratorium on new permits for medical marijuana caregiver facilities, as defined by the City of Saco s Zoning Ordinance and further move to set the second and final reading for May 15, Amendment Councilor Cote moved to continue to exempt facilities that grow their plants outside in the Industrial Park area. Due to a lack of a second the motion was not considered. Amendment Councilor Cote moved, Councilor Johnston seconded to exempt facilities that use 100% renewable energy. The motion failed with three (3) yeas and four (4) nays Councilors Precourt, Doyle, Roche and Minthorn. TABLE Councilor Cote moved to table this item. Due to a lack of a second the motion was not considered. Mayor Michaud called for a vote on the main motion. The motion passed with six (6) yeas and one (1) nay Councilor Cote. I. EMERGENCY ZONING ORDINANCE CHAPTER 135, MARIJUANA CULTIVATION & DISTRIBUTION City Staff informed the City Council at a workshop meeting on April 24, 2017 around life safety concerns from non-conforming use related to marijuana growth in multi-family units. This emergency ordinance creates a process by which marijuana growing, cultivation, handling and processing, etc becomes a trigger for the requirement to secure a license. The requirement to license arises regardless of the type (medical or recreational) being grown, cultivated, etc. Growing, cultivating, etc. for third parties without proper knowledge and inspection by local authorities can lead to the risk or fire, electrical injury, and death. This ordinance does not have an impact on personal use of marijuana. Councilor Precourt moved, Councilor Minthorn seconded The City Council hereby Ordains and Approves the Emergency Zoning Ordinance: Chapter 135, Marijuana Cultivation and Distribution. TABLE Councilor Cote moved to table this item until the first week in June. Due to the lack of a second the motion was not considered. Councilor Minthorn moved, Councilor Doyle seconded to move the question. The motion passed with six (6) yeas and one (1) nay Councilor Cote. Mayor Michaud called for a vote on the main motion. The motion passed with six (6) yeas and one (1) nay Councilor Cote. M:\2017\cm_2017_05_08.doc 5/19/2017 Page 21 of 32

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30 C. ADOPTION OF THE MUNICIPAL BUDGET Mayor Michaud resumed the discussion on the municipal budget. Councilor Doyle moved, Councilor Gay seconded Be it Ordered that the City Council move to approve an appropriation order for the adoption of the Fiscal Year 2018 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 $26,560,479 ($51,905,974 less School $24,061,762 and County $1,283,733) in municipal expenditures, $26,560,479 in departmental appropriations, $100,000 in overlay, $1,319,182 in TIF transfers, and $926,304 in capital improvements for municipal operations; to be offset by $25,560,479 in anticipated revenue and other credits, which represents $8,802,325 in anticipated municipal revenues, and other credits of $750,833 from the Ambulance Fund and the $24,554 from the Camp Ellis Fund: and thereby raising gross taxes of $16,554,495 and further ordering that the amounts set in the following attached schedule titled CITY OF SACO FY2018 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 as authorized under Section 6.04 of the Charter of the City of Saco, Maine. Further move to approve the order. Amendment #39 Councilor Roche moved, Councilor Doyle seconded to move $29,000 out of police budget expenses for cruisers and put into undesignated fund balance. The motion passed with six (6) yeas and one (1) nay Councilor Cote Councilor Doyle moved, Councilor Gay seconded Be it Ordered that the City Council move to approve an appropriation order for the adoption of the Fiscal Year 2018 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 $26,560,479 ($51,905,974 less School $24,061,762 and County $1,283,733) in municipal expenditures, $26,560,479 in departmental appropriations, $100,000 in overlay, $1,319,182 in TIF transfers, and $926,304 in capital improvements for municipal operations; to be offset by $25,560,479 in anticipated revenue and other credits, which represents $8,831,325 in anticipated municipal revenues, and other credits of $750,833 from the Ambulance Fund and $428,272 from the Economic Development Fund and the $24,554 from the Camp Ellis Fund: and thereby raising gross taxes of $16,525,495 and further ordering that the amounts set in the following attached schedule titled CITY OF SACO FY2018 BUDGET OVERVIEW which shall become a part of the City Clerk's M:\2017\cm_2017_05_08.doc 5/19/2017 Page 30 of 32

31 records and shall designate the form of the City of Saco Budget for Fiscal Year as authorized under Section 6.04 of the Charter of the City of Saco, Maine. Further move to approve the order. The motion passed with five (5) yeas and two (2) nays Councilors Doyle and Minthorn. J. CREATION OF A SHARED FINANCE DIRECTOR WITH THE CITY OF BIDDEFORD (TABLED) On Monday, May 1 st, Saco City Council chose to table for 30 days a vote to share our Finance Director with the City of Biddeford. On Tuesday, May 2 nd, Biddeford City Council voted to move forward with a shared finance M:\2017\cm_2017_05_08.doc 5/19/2017 Page 31 of 32

32 position with Saco. The vote contained a sunset clause of two weeks (at their May 16 th meeting) if Saco doesn t vote in favor of this proposal before then. Councilor Roche has offered to un-table this item at the May 8 th meeting in order to discuss and bring back to vote (as the Joint Saco-Biddeford Steering Committee will be meeting on Monday at 4:30pm) or to re-table to the May 15 th meeting if there are additional concerns that should be addressed. Rescind the motion - Councilor Roche moved, Councilor Minthorn seconded to move the item off the table for discussion. The motion passed with four (4) yeas and three (3) nays Councilors Gay, Cote and Johnston. Councilor Precourt moved, Councilor Doyle seconded to approve the shared finance director position for a 1 year. The motion failed with three (3) yeas and four (4) nays Councilors Gay, Doyle, Cote and Johnston. VIII. COUNCIL DISCUSSION AND COMMENT There were no comments this evening. IX. ADJOURNMENT Mayor Michaud adjourned the meeting with the unanimous consent of the Council at 11:05 p.m. Attest: Michele L. Hughes, City Clerk M:\2017\cm_2017_05_08.doc 5/19/2017 Page 32 of 32