Bayville / BBH Discussions, 2007
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Two long-standing issues were resolved during the Monday, November 26 Boothbay Harbor Board of Selectmen's meeting ...With the absence of selectman Tom Carbone, the board was short-handed for the second meeting in a row.

The one outstanding issue in the proposed contract between Bayville and Boothbay Harbor is the length of the agreement. Selectman Bruce Engert reaffirmed his concern that a 25-year agreement was not advantageous to the town, and suggested that a 10-year term would be better. Engert noted that town counsel Geoff Hole, in his review of the proposal, had raised a similar concern. Phil Roberts, on behalf of Bayville, said that although no overseers were presently in town, "The overseers are unanimous and adamant about the term limit."

Selectman Robert Splaine stated that he viewed the proposed 25-year contract as an effort to prevent any further one-sided attempts to cancel the contract. Splaine said that he had no objection to the proposed contract since it offers a secondary safeguard that would allow the contract to be renegotiated by mutual consent. "We can at any time . . . renegotiate; we can do that at any time . . . If we went back down the lonely road of trying to cancel, it would just cost us an awful lot of money," Splaine noted. Selectmen Louis Burnham and Brian Schutrumpf concurred. The board voted 3-1 to approve the contract as negotiated and presented.

Monday, October 8, 2007

Boothbay Register, September 20, 2007

The Boothbay Harbor Board of Selectmen's meeting continued on Friday, September 14 primarily to discuss a draft proposed contract between Boothbay Harbor and the Bayville Village Corporation. In light of how quickly the current Board and Bayville appear to be reaching mutually agreeable terms, one wonders how the contentious and costly process of the previous negotiations ever developed.

The main goals of the draft contract presented by the Bayville Board of Overseers is to assure a long-term end to efforts to alter or repeal the Bayville Charter and to provide compensation to the town for revenue shortfalls caused by the inclusion of Bayville's real estate valuation in with the town of Boothbay Harbor's for state tax abatement purposes. The major points of the proposed 25-year contract are: (1) that Bayville agrees not to pursue legislation to change the 60/40 tax revenue split or to secede from the town, unless that legislation is agreed to by the town; (2) that Bayville will remit to the town the amount of funds that the Harbor loses in state aid; (3) that the town will not seek legislation to change the terms of Bayville's 1911 Charter, unless that change is agreed to by Bayville; (4) that the town acknowledges that under state law Harbor voters do not need to approve the annual payment by the town of 60 percent of the tax rebate to Bayville; and (5) that the existing formula for Bayville's payment of Refuse District Disposal fees would remain in effect. The contract would go into effect 60 days after its approval by a majority of voters of the town of Boothbay Harbor and the residents of Bayville.

The selectmen were generally very receptive to the proposed contract. Selectmen Brian Schutrumpf and Robert Splaine suggested that with the unknowns relative to the ongoing school consolidation process that it would be best to add a caveat regarding school funding. Jim Coleman of Bayville agreed to add a paragraph to the effect that if the current school funding formula changes in a way that alters the Harbor's school financial responsibilities relative to Bayville, that portion of the contract shall be revisited. The Harbor presently does not pay tuition for Bayville students.

Both selectman Bruce Engert and Town Manager Tom Woodin asked Bayville if they would consider a shorter contract duration. Coleman responded that Bayville was firm on 25 years, particularly in light of the recent, expensive, futile negotiations. Engert asked Bayville if it would consider a different tax split. Barbara Allison of Bayville explained that Bayville had previously offered the change in tax split in hopes of avoiding the legal wrangle that cost both the town and Bayville so much. She said it was too late for that offer now, and, at any rate, that change would require legislative action.

Ultimately, the Board of Selectmen and Bayville Overseers agreed in principle with the draft, provided the agreed to changes were made. Bayville agreed to edit the draft, which once approved by both groups, would be reviewed by legal counsel.

Bayville, footbridge disrepair, and the town's financial situation were the major topics of discussion at the Monday, August 27 Boothbay Harbor Board of Selectmen's meeting.

Tom Woodin, Town Manager, asked the board to formally consider Bayville's suggestion that they would pay one school tuition, presently about $7,000 to $8,000, each year to Boothbay Harbor as a form of compensation. Bayville presently has no school or pre-school age children in the community. However, the proposal also stipulated that Bayville would pay no more than one tuition even if the community had school-bound children. Selectmen Brian Schutrumpf was the first to object. "It's an open-ended situation that I would not like to venture into. I recommend that we do this through a set dollar per household amount and revisit as needed." The other selectmen concurred that tying compensation to school tuition was an undesirable situation.

Selectman Bruce Engert suggested that it would be more appropriate to tie the formula to revenue sharing and property valuation. Selectman Robert Splaine pointed out that he had looked at the valuation issue and the actual monetary difference was only about $1,800/year, which includes Isle of Springs. Selectman Tom Carbone asked Bayville to consider paying Boothbay Harbor the loss in tax abatement from the state, adjusted yearly.

Peter Jordan of Bayville stated that since he was the only one of the overseers present, he could not commit to any course of action for Bayville. Engert suggested that since Bayville couldn't commit at the current meeting, another workshop should be held. Phil Roberts agreed and expressed appreciation for the cooperation and courteousness of the current board and town manager.

Splaine suggested that Bayville prepare a tentative contract before the next workshop to facilitate the discussion. The major points to be addressed in the contract included contract term, Bayville's assurance not to seek any affiliation with others, Bayville's assurance that it would not pursue secession, and revenue sharing. The board and Bayville representatives agreed. Roberts said, "If we could have had these kinds of discussion with the previous board and manager, we could have saved both towns lots of dollars." The public will be notified of the date of the upcoming workshop.

Boothbay Register, May 24, 2007

It's come full circle after three years. The Boothbay Harbor-Bayville dispute over the 60/40 tax split was heard in Augusta on May 11 and 16. And the message was, "work it out."

Both entities' bills were rejected. LD 1867, sponsored by Senator Dana Dow for Boothbay Harbor, sought to amend the Private and Special Law 1911, chapter 227, which created the Bayville Village Corporation, by repealing the provision that required 60 percent of property taxes raised by Boothbay Harbor on property located in Bayville Village Corporation to be annually paid over to the Corporation for use.

LD 1846, the Bayville Village Corporation's bill sponsored by Representative Bruce MacDonald, would have allowed the separation of the Bayville Village Corporation from the town of Boothbay Harbor and to affiliate with the town of Boothbay if the legal voters of Bayville Village Corporation voted in favor of separation and affiliation, and the legal voters of the town of Boothbay voted in favor of the affiliation.

On Friday, May 11, there was a hearing at the state house where the parties presented their cases and offered testimony.

Jim Coleman, Chairman of Bayville's Board of Overseers, quoted Senator Elizabeth Schneider as saying, "Fairness is in the eye of the beholder."

Based on the committee's review of the testimony and materials presented at the May 11 hearing, the committee expressed its belief that a split of 70/30 would be a more equitable one.

In the committee's opinion, this was a local issue that should have been resolved on a local level.

Mediation was recommended between Boothbay Harbor, Bayville Village Corporation and Boothbay. The committee indicated that they did not want to see the parties back again.

However, if a local agreement could not be reached, the procedure for annexation and secession statue would have to be followed. Bayville would then have to secede from Boothbay Harbor; Boothbay Harbor would have to agree.

Now parties will wait for the committee's letter, which will reiterate the guidance already given at the state house with regard to how it [committee] expects the parties to proceed.

"It's a tragedy that it got this far. We [Bayville] were willing to talk all along, but the Harbor was firm about wanting 100 percent of our taxes. We all want to be good neighbors," said Coleman.

Good neighbors. If the feedback from Boothbay Harbor is any indication, a friendly, neighborly approach may be just what can be expected.

"Senator Schneider definitely had some strong opinions about the situation," said Tom Woodin, Boothbay Harbor's new town manager, and former selectman, of the committee's decision.

"But, afterward, we [Harbor and Bayville attendees] had a very nice conversation, everyone got along together well," Woodin said. "I feel certain we will be able to work something out."

"We have two options; leave things as they are with the 60/40 split, or negotiate with Bayville for a different percentage," said Woodin.

Woodin noted that Bayville residents present at the state house still seemed willing to pursue negotiations.

From the start, Bayville has been willing to negotiate - they offered a 50-50 split which Boothbay Harbor refused; maintaining that the issue was not about money, but about equity.

"My personal opinion is that we should just leave it [the split] the way it is," Woodin said. "We have been going through this for three years now, as the townspeople directed us to do, but, you have to know when to cut your losses."

Woodin said he suspected that the selectmen and Bayville's overseers would be meeting in the very near future.

Newly elected selectman Louis Burnham attended both the hearing and the working session. He concurred with Woodin on the future meeting and agrees with Woodin on the 60/40 split.

"We are all friends and neighbors and I believe we can work this out," said Burnham. "The selectmen did what the town asked them to do, and now, a lot of money has been spent that could have been directed towards something more beneficial."

Indeed, between both entities, over $100,000 in legal fees were incurred.

The largest percentage of these fees was borne by the town of Boothbay Harbor; a great deal more than the $30,000 that was originally allocated to begin proceedings in 2005.

"Certainly a great deal of money has been spent only to come full circle," Woodin said.

In Boothbay, Town Manager John Anderson, who attended the session, said Boothbay is "just fine with whatever is decided."

At the May 3, 2004 town meeting, article 25 was the vote to, "pay the treasurers of the Bayville Village Corporation and the Isle of Springs Association an amount equal to 60 percent of the taxes collected from the inhabitants and estates of that corporation and association (unofficial show of hands to investigate changing this practice.) This "unofficial show of hands" was the vote that started the wheel turning.

Article 4, at the May 2, 2005 town meeting, was the vote to appropriate $30,000 from the undesignated fund balance for the purpose of modernizing, through appeal or amendment, the governmental interrelationship between the Town of Boothbay Harbor and the Isle of Springs and the Bayville Corporation, the current interrelationships having been created in 1903 and 1911 respectively. Sixty-four Boothbay Harbor voters cast a vote of yes; 43 voted no.

                              Public Hearing in Augusta

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