Mon, 02/12/2018 - 6:15pm

LINCOLNVILLE — Approximately 100-plus citizens in Lincolnville gathered at the town’s Central School and easily approved a special town meeting referendum that ensures financial help to the Lincolnville Sewer District for 10 years.

They approved: “To see if the Town will vote to authorize the Board of Selectmen to enter into an agreement with the Lincolnville Sewer District for the Town to contribute $19,000 per year for 10 years to help fund capital improvement upgrades to Lincolnville Sewer District’s wastewater treatment facility, collection system and pump station at Lincolnville Beach.”

The Lincolnville Sewer District, which oversees wastewater management over a stretch of Lincolnville Beach, identified a need for larger sewer system at the Beach to accommodate more properties and better protect drinking water. The existing system, built in 1991, is aging, and the district proposed extending the existing sewer system up Route 173, south on Route 1, and then further north on Route 1.

The sewer district trustees secured enough loans and grants to get the project going and to break ground this year. The district received a $1.6 million loan and a $1 million grant from the U.S. Dept. of Agriculture for the project.

The USDA stipulated, however, that it wanted to see a municipal commitment to the project. After months of discussions, the town and the Sewer District drafted an agreement that ensures a $19,000 contribution by the town paid annually over 10 years.

According to the Lincolnville Sewer District, it has secured $3,135 million (94 percent) of a $3,325 million project: “which will generate more than five million dollars in revenue over 40 years. With town support, the project will be fully self sufficient after the first ten years.”

The district’s rationale for municipal support follows:

“All communities need healthy/reliable, long term solutions to sewage treatment and disposal. The success of the Lincolnville Sewer District can be used to support/improve other areas areas of town as well.
“There is a responsibility, on the part of town management, to contribute to the infrastructure of a town's business district and areas of resident and tourist recreation. With a yes vote, the town makes a modest financial contribution and has no further obligation.
“Our community needs to support both marine based businesses as well as the restaurants and retail shops along Route 1 because providing residents with jobs is important to the economic health of Lincolnville.
“Properties within the district provide a sizable portion of town tax revenue.
“Updated sewer treatment with a long term life will contribute to the health of the bay and waterways that flow into the bay.
“Many homes in the district are of historic age and are on land lots that are too small to support independent, effective septic and leaching systems.”

The district trustees meet weekly on Tuesdays at 6:15 p.m. at the LIA/School House Museum on Route 173 at Lincolnville Beach.

AGREEMENT

This Agreement is entered into this day of ________ , 20 1 8 , by and between the INHABITANTS OF THE TOWN OF LINCOLNVILLE , a municipal corporation organized and existing under the laws of the State of Maine with a mailing address of 493 Hope Road, Lincolnville, ME 04849 (hereinafter the “ Town ”) , and the LINCOLNVILLE SEWER DISTRICT , a Maine quasi - municipal corporation created by Private & Special Law 2009, ch. 32 with a mailing address of P.O. Box 302, Lincolnville , ME 0484 9 (hereina fter collectively the “ Sewer District ” ).

W I T N E S S E T H:

WHEREAS, the Sewer District has obtained certain grant fund assurances including a loan (the “USDA Loan”) from the United States Department of Agriculture , Rural Development in the amount of $ 1,600,000 , to fund capital improvement upgrades and construction of a wastewater treatment facility, collection system and pump station s at Lincolnville Beach (the “Project”) ;

WHEREAS, the Se wer District has requested financial assistance from the Town to support the Project; and

WHEREAS, the parties desire to set forth the terms and conditions upon which the Town will provide financial assistance to the Sewer District t o support the Project ;

NOW, THEREFORE, in consideration of the mutual conditions and covenants contained herein, the parties agree as follows:

1. Within one (1) calendar month after the date (the “Closing Date”) on which the Sewer District and the United States Department of A griculture , Rural Development (the “USDA”) execute and deliver all documents evidencing the USDA Loan, and all contingencies to the liability of the Sewer District or the USDA under th e USDA Loan as referenced in those documents have occurred or been waive d , the Sewer District shall provide the Town with a copy of its annual debt service payment (the “Annual

Payments”) schedule related to the USDA Loan (the “Schedule”), informing the Town of the date (the “Annual Due Date”) and amounts of the annual debt se rvice payments which are due to be made by the Sewer District under th e USDA Loan during the ten year period starting on the Closing Date .

2. T he Town shall , on or before the date which is one (1) calendar month before the first Annual Due Date and continu ing on the same day of each of the following nine (9) years, pay the sum of $19,000 to the order of the Sewer District ( $190,000 in total) . The Sewer District shall apply each of the Town’s payment s t o the Annual Payment next coming due after the date on which that Town payment was required to be made under the terms of this Agreement . Th e Town’s payment shall be by check drawn on or by a financial institution located within the same Federal Reserve Dis trict as Lincolnville, Maine, or by wire transfer of funds to the Sewer District’s account.

3. During the term of this Agreement, o n a quarterly basis, or more frequently if so requested by the Board of Selectmen of the Town , the Sewer District shall provi de to the Town a financial report on the Project and the status of all its outstanding debt .

4. Once a total of $ 190 ,000 has been paid by the Town to the Sewer District as provided in this Agreement , no further payments are required to be made by the Town to the Sewer District pursuant to this Agreement , and the Town shall have no further obligation s under the terms of this Agreement . The Town may prepay any amounts which not then due and owing under this Agreement to the Sewer District at any time without penalty.

5. The Board of Selectmen of the Town may, in i ts discretion, appoint an observer who the Sewer District shall invite to attend all Sewer District B oard of Trustees ’ meetings on the Town’s behalf . Th e purpose of this appointm ent is to ensure a strong working relationship between the Town and the Sewer District. However, even if a Town observer is in attendance at a Sewer District Board of Trustees ’ meeting , the Sewer District B oard of Trustees may, in its discretion, convene into executive session

for the purpose of discussing sensitive subjects such as personnel matters, hiring plans, etc. , to the extent that such is otherwise permitted by applicable law.

6. This Agreement shall terminate and neither party shall have any furt her obligations under the terms of this Agreement if the Closing Date does not occur on or before , December 31, 2021 . Otherwise, a party to this Agreement will be in default under the terms of this Agreement if that party breaches any term of this Agreement . The occurrence of a default by one party to this Agreement shall entitle the other party to invoke any remedy provided by law or equity, including , upon any default by the S e wer District, and without limitation, suspension or terminatio n of the Town’s obligation to make annual payment(s) to the Sewer District . Any party defaulting under this Agreement shall pay all costs, including, without limitation, reasonable attorney’s fees, incurred by the other party in enforcing its rights unde r the terms of this Agreement. Notwithstanding any other provision of this Agreement, however, neither party shall be liable to the other for any consequential or incidental damages caused in whole or in part by any default under this Agreement.

7 . Misce llaneous.

(a) This Agreement supersedes any and all prior understandings and agreements between the parties and constitutes the entire Agreement between them with respect to the subject matter hereof .

(b) This Agreement is personal to the Sewer District , and the Sewer District shall not assign this Agreement.

( c ) This Agreement shall not be altered, modified or amended except by a written instrument signed by the Town and the Sewer District .

( d ) This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Maine , excluding choice of law principles .