An Act To Create the Presque Isle Utilities District
Maine Legislature, Session 126, LD 1293
Committee Amendment CA_A_H458 (House)

COMMITTEE AMENDMENT "A" to H.P. 920, L.D. 1293, Bill, "An Act To 
Create the Presque Isle Utilities District" 
Amend the bill in section 3 in the blocked paragraph in the last line (page 1, line 32 in 
L.D.) by inserting after the foHowing: "district" the following: 'and consistent with the 
requirements of applicable federal, state and local laws' 
Amend the bill in section 4 in the 5th line (page 2, line 13 in L.D.) by striking out the 
following: "1152" and inserting the following: '1252, subsection 2' 
Amend the bill in section 4 in subsection 1 in the last line (page 2, line 18 in L.D.) by 
striking out the following: 
"sections I 152-A, 1153 and 1154" and inserting the 
following: 'section 1252, subsection 2' 
Amend the bill in section 6 in the first paragraph in the 4th line (page 2, line 37 in 
L.D.) by inserting after the following: "and" the following: ',except as provided in 
subsection 1,' 
Amend the bill in section 6 in the first paragraph in the 6th line (page 2, line 39 in 
L.D.) by striking out the following: 
"The" and inserting the following: 
'Except as 
provided in subsection 1, the' 
Amend the bill in section 6 in the first paragraph in the last 3 lines (page 2, lines 40 to 
in L.D.) by striking out the following: ", except that the trustees in office for the 
Presque Isle Sewer District a'ld Presque Isle Water District when this Act becomes 
effective serve as the first trustees of the utilities district" 
Amend the bill in section 6 in the 2nd paragraph in the 4th line from the end (page 3, 
line 8 in L.D.) by striking out the following: 
"The" and inserting the following: 
'Notwithstanding the Maine Revised Statutes, Title 35-A, section 6410, subsection 7 and 
Title 38, section 1252, subsection 5, the' 
Amend the bill in section 6 by striking out all of subsection 1 (page 3, lines 22 to 30 
in L.D.) and inserting the following: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT A 
"to H.P. 920, L.D. 1293 
'1. Transition provisions; annual meeting. The 6 trustees of the Presque Isle 
Sewer District and the Presque Isle Water District serve on the first board of the utilities 
district. The terms of these trustees are as follows: the terms of office of the 2 trustees 
whose terms expire in the first calendar year following the calendar year of the effective 
date of this Act serve as trustees of the utilities district with terms that expire on 
December 31 st of the same calendar year in which this Act takes effect; the terms of 
office of the 2 trustees whose terms expire in the 2nd calendar year following the 
calendar year of the effective date of this Act serve as trustees of the utilities district with 
terms that expire on December 31 st of the first calendar year following the calendar year 
lOin which this Act takes effect; and the terms of office of the 2 trustees whose terms expire 
in the 3rd calendar year following the calendar year of the effective date of this Act serve 
as trustees of the utilities district with terms that expire on December 31st of the 2nd 
calendar year following the calendar year in which this Act takes effect. The term of the 
new trustee added by this Act, who will be appointed by the city council of the City of 
Presque Isle, expires on December 31 st of the 2nd calendar year following the calendar 
year in which this Act takes effect. 
Within one month after each annual appointment, the trustees of the utilities district shall 
meet for the purpose of electing a president and clerk from among them as well as a 
treasurer, who mayor may not be a trustee, to serve for the following year and until their 
successors are elected and qualified.' 
Amend the bill in section 6 by striking out all of the last paragraph (page 3, lines 31 
to 33 in L.D.) 
Amend the bill in section 8 in the 2nd line (page 3, line 38 in L.D.) by inserting after 
the following: "The" the following: 'Presque Isle Water District is authorized to sell to 
the utilities district and the' 
Amend the bill in section 8 in the last line (page 3, line 43 in L.D.) by inserting after 
the following: "district." the following: 'Upon transfer by the Presque Isle Water District 
to the utilities district of its plant, property, franchise, property rights, privileges and 
assets, the utilities district assumes all the outstanding debts, obligations and liabilities of 
the water district, including, without limitation, any outstanding bonds, notes or other 
evidence of indebtedness of the water district that are due on or after the date of transfer.' 
Amend the bill in section 8 by inserting after the first paragraph a new paragraph to 
read: 
'The sale and transfer by the Presque Isle Water District of its plant, property, 
franchise, property rights, privileges and assets; the assumption by the utilities district of 
all the outstanding debts, obligations and liabilities of the water district and the utilities 
district's subsequent use of the plant, property, franchise, property rights, privileges and 
assets; and all other water utility activities of the utilities district are subject to the 
approval of the Public Utilities Commission as may be required by the Maine Revised 
Statutes, Title 35-A.' 
Amend the bill in section 9 in the 2nd line (page 4, line 2 in L.D.) by inserting after 
the following: "The" the following: 'Presque Isle Sewer District is authorized to sell to 
the utilities district an~the' 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT ,Ii "to H.P. 920, L.D. 1293 
Amend the bill in section 9 in the last line (page 4, line 7 in L.D.) by inserting after 
the following: "district." the following: 'Upon transfer by the Presque Isle Sewer District 
to the utilities district of its plant, property, franchise, property rights, privileges and 
assets, the utilities district assumes all the outstanding debts, obligations and liabilities of 
the sewer district, including, without limitation, any outstanding bonds, notes or other 
evidence of indebtedness of tht: sewer district that are due on or after the date of transfer.' 
Amend the bill by inserting after section 9 the following: 
'Sec. 10. Completion of transfer. Promptly after completion of the transfer and 
assumption of assets and liabilities pursuant to sections 8 and 9, the Presque Isle Water 
District and the Presque Isle Sc:wer District shall each cause to be filed with the Secretary 
of State a certificate of dissolution certifying the name of that district and certifying that 
all assets of that district and all debts, obligations and liabilities of that district have been 
transferred to the utilities district. The certificate of dissolution must be signed by the 
chair or presiding trustee of the respective district and by the clerk, secretary or another 
officer of that district. Upon th,~ respective filing dates of the certificates of dissolution of 
the Presque Isle Water District and the Presque Isle Sewer District, the existence of those 
districts cease. 
Upon dissolution of the Presque Isle Water District and the Presque Isle Sewer 
District, the trustees of the utillties district shall submit legislation for introduction to the 
Legislature to repeal the chartc:rs of the Presque Isle Water District and the Presque Isle 
Sewer District.' 
Amend the bill in section lOin the last paragraph in the 3rd line (page 4, line 23 in 
L.D.) by striking out the following: 
"Title 35-A, section 6412" and inserting the 
following: 'Title 30-A, section 5701' 
Amend the bill by striking out all of section 12 and inserting the following: 
'Sec. 12. 
Sewer rates payable; adoption of new rates; application of 
revenue; collection of unpaid rates; authority to disconnect water for 
nonpayment of sewer service. Notwithstanding the Maine Revised Statutes, Title 38, 
section 1252, subsection 1, this section governs the sewer rates of the utilities district. 
All persons, firms and corporations, whether public, private or municipal, shall pay to 
the treasurer the rates, tolls, rents, entrance charges and other lawful charges established 
by the trustees for the sewer or drainage service used or available with respect to their 
real estate, including rates for the utilities district's readiness to serve that are charged 
against owners of real estate abutting on or accessible to sewers or drains of the district, 
but not actually connected the:~eto, whether or not such real estate is improved. In this 
Act, the words "other lawful charges" or "other charges" include, but are not limited to, 
interest on delinquent accounts at a rate not to exceed the highest lawful rate set by the 
Treasurer of State for municipal taxes. 
Rates, tolls, rents and entr;mce charges must be uniform within the utilities district 
whenever the cost to the district of installation and maintenance of sewers or their 
appurtenances and the cost of ~;ervice is substantially uniform, but nothing precludes the 
utilities district from establishing a higher rate, toll, rent or entrance charge than the 
regular rates, tolls, rents and entrance charges in sections where, for any reason, the cost 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 920, L.D. 1293 
to the utilities district of construction and maintenance, or the cost of service, exceeds the 
average, but such higher rates, tolls, rents and entrance charges must be uniform 
throughout the sections where they apply. 
Prior to the adoption of a new rate schedule, the trustees shall hold a public hearing 
regarding the proposed rate schedule. The trustees shall publish the proposed rates and 
notice of the hearing at least once in a newspaper of general circulation in the utilities 
district not less than 7 days prior to the hearing. The utilities district shall mail to each 
ratepayer a notice of the public hearing and the proposed new rate at least 14 days prior to 
the hearing. 
Notwithstanding any other provision of law, if the utilities district shares, supplies or 
contracts for services with another sewer or sanitary district, the districts shall establish 
rates, tolls, rents and entrance charges mutually agreeable to the trustees of each 
participating district. 
The sewer rates, tolls, rents, entrance charges, assessments and other lawful charges 
established by the board of trustees in accordance with this Act must be fixed and 
adjusted to produce, in the aggregate, revenue at least sufficient, with any other funds 
available for the purpose, to: 
1. 
Current operating expenses. 
Pay the current expenses of operating and 
maintaining the sewerage, drainage and treatment system of the utilities district including 
the cost of depreciation; 
2. Payment of interest and principal. Pay the principal of, premium, if any, and 
interest on all bonds and notes issued by the utilities district under this Act as the bonds 
and notes become due and payable; 
3. Sinking fund for retirement of obligations. Create and maintain such reserves 
as may be required by any trust agreement or resolution securing bonds and notes; 
4. Repairs, replacements and renewals. Provide funds for paying the cost of all 
necessary repairs, replacements and renewals of the sewerage, drainage and treatment 
systems of the utilities district; and 
5. Payment of obligations. Payor provide for all amounts that the utilities district 
may be obligated to payor provide for by law or contract, including any resolution or 
contract with or for the benefit of the holders of its bonds and notes. 
There may be a lien issued on real estate served or benefited by the sewers of the 
utilities district to secure the payment of unpaid sewer rates and other lawful charges. 
The sewer lien takes precedence over all other claims on the real estate, except claims for 
taxes. 
Notwithstanding any other provision of law, the procedures for obtaining, 
enforcing and receiving payment on the sewer lien must conform to Title 38, sections 
1208 and 1208-A. 
Notwithstanding any other provision of law, in the event a user of the utilities 
district1s sewer system fails within a reasonable time to pay the utilities distrids rates, 
fees or charges for sewer service, the utilities district may disconnect water service to the 
user, as long as the disconnection is accomplished in accordance with procedures 
established in applicable law or rules governing disconnection of utility services and 
terms and conditions approved by the Public Utilities Commission. I 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT·A "to H.P. 920, L.D. 1293 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment clarifies that the Presque Isle Utilities. District is authorized to 
conduct its business in a way that is consistent with applicable federal, state and local 
law. This amendment corrects cross-references and clarifies the transition provisions 
regarding the terms of trustee~,. This amendment gives explicit authority to the existing 
sewer district and water district to transfer their assets and liabilities to the new utilities 
district and makes it clear that the transfer of assets and liabilities of the water district 
must be approved by the Public Utilities Commission. 
This amendment requires 
legislation to be submitted to repeal the charters of the Presque Isle Sewer District and the 
Presque Isle Water District once they are dissolved for the purposes of creating the 
Presque Isle Utilities District. 
COMMITTEE AMENDMENT