THE RECORD

SPECIAL TOWN MEETING

NOVEMBER 29, 2000

Town of Bar Harbor

The Town of Bar Harbor Special Town Meeting was initial held in the Municipal Building auditorium, third floor, and the Town Clerk call the meeting to order at 7:12 p.m. A motion was made and duly seconded to dispense with the reading of the warrant. There being no discussion, it was voted to dispense with the reading. Motion passed. The Clerk opened the floor for nomination for election of moderator. Nomination for Kim Swan-Bennett was made. There being no other nominations and it was moved, duly seconded and voted that nominations cease. Motion passed by unanimous vote. Seven votes were cast for Kim Swan-Bennett. Ms. Swan-Bennett was declared elected moderator and was sworn in by the Clerk. A motion was made and duly seconded to move the meeting to the Emerson School gym due to the overcrowding, a violation of fire regulations. It was voted to moved. Motion passed. The moderator announced the meeting would reconvene in thirty minutes in the Emerson School gym.

Moderator Swan-Bennett reconvened at 7:47 p.m. in the Emerson School gym with 377 registered voters, approximately 500 persons were in attendance. Warrant Committee Chairman, Rob Jordan, made the motion and was duly seconded that the Warrant Committee recommends and he moved that the Town adopt Article 2 as printed in the Warrant. Mr. Jordan gave the Warrant Committees report and the committee's vote of twelve (12) to four (4) to approve the adoption of Article 2.

ARTICLE 2 - BAR HARBOR WATER COMPANY PURCHASE - Shall the following article be adopted?:

(1) That a Condemnation Order in the matter of the Bar Harbor Water Company, dated November 8, 2000 and signed by the Bar Harbor Town Council, for the acquisition of the assets of the Bar Harbor Water Company, is hereby ratified and approved; and

(2) To provide funds for the acquisition of the assets described in the Condemnation Order, a sum not to exceed $4,039,100 is hereby appropriated; and to provide funds for the purchase of additional assets of the Bar Harbor Water Company not included in the Condemnation Order, and to cover fees and expenses related to the acquisition, a further sum not to exceed $560,900 is hereby appropriated, which sum is to be used as necessary, in the sole discretion of the Council, to accomplish the purposes of this Article, with any additional asset purchase being based on the Council's determination of value; and

(3) To fund said project, the Treasurer and Chairman of the Town Council, acting pursuant to the provisions of 30-A M.R.S.A. §5772, are hereby authorized to issue general obligation securities of the Town of Bar Harbor (including temporary notes in anticipation of the sale thereof) in an aggregate principal amount not to exceed Four Million Six Hundred Thousand and 00/100 Dollars ($4,600,000.00), and the discretion to fix the date(s), maturity(ies), interest rate(s), denomination(s), place(s) of payment, form and other details of said securities, including execution and delivery of said securities on behalf of the Town of Bar Harbor, and to provide for the sale thereof, is hereby delegated to the Treasurer and Chairman of the Town Council.

Town Manager Dana Reed gave a summary of events and reasons why the Town should purchase the Bar Harbor Water Company, the last being at 4:00 p.m., November 29, the Board of Directors of the Bar Harbor Water Company and the Town signed a letter of intend for the Town to purchase the Bar Harbor Water Company at a rate within the amount of the Warrant. There was no longer a need to proceed with the condemnation order. Mr. Tom Burton made the motion to withdraw the Warrant Committee's motion. It was duly seconded, and voted to rescind the Warrant Committee's motion. Motion carried.

Mr. Richard Collier, President of the Bar Harbor Water Company, made the motion and it was duly seconded, that the voters of the Town of Bar Harbor authorize the Bar Harbor Town Council to enter into an agreement for acquisition of the Bar Harbor Water Company, a Maine Corporation, on terms that the Council deems advisable, appropriate Four Million Six Hundred Thousand Dollars ($4,600,000) for the purpose of such acquisition, and adopt and approve paragraph 3 of Article of the warrant: (3) To fund said project, the Treasurer and Chairman of the Town Council, acting pursuant to the provisions of 30-A M.R.S.A. §5772, are hereby authorized to issue general obligation securities of the Town of Bar Harbor (including temporary notes in anticipation of the sale thereof) in an aggregate principal amount not to exceed Four Million Six Hundred Thousand and 00/100 Dollars ($4,600,000.00), and the discretion to fix the date(s), maturity(ies), interest rate(s), denomination(s), place(s) of payment, form and other details of said securities, including execution and delivery of said securities on behalf of the Town of Bar Harbor, and to provide for the sale thereof, is hereby delegated to the Treasurer and Chairman of the Town Council.

Following discussion and questions, Mr. Chad Smith moved that Judy Hayes, President of Consumer Maine Water, a non-resident be permitted to answer questions. The motion was duly seconded, and voted. Motion carried.

Following further discussion and comments, Mr. Jeff Dobbs moved that the question on the floor be voted and include a written ballot. The motion was duly seconded and voted. Motion failed. The motion to move the question with a show of hands, was duly seconded and voted. Motion carried. The motion on the floor was taken with a show of hands. Motion passed. Several hundred hands aye, to less than twenty nays.

With no other business before them, the moderator declared the meeting adjourned at 9:03 p.m.

Attest: ___________________________________________

Patricia A. Gray, Town Clerk of Bar Harbor