An audit conducted by the United States Economic Development Agency may determine whether Boothbay will pursue joining the Midcoast Economic Development District.

Several weeks ago, Boothbay inquired about joining MCEDD as a municipal member. Selectmen discussed membership options Feb. 11.

On Feb. 6, the agency responded by email. Executive Director Jeff Kobruck provided the selectmen information about what the town’s membership fee may be and how the organization is funded.

The MCEDD encompasses Lincoln, Sagadahoc and Knox counties along with communities in Cumberland and Waldo. The agency solicits funds from its members on a county-based funding formula. There is currently no provision for municipal membership. But Kobruck wrote that may change.

“Our experience with this county-funding model has not been entirely successful,” wrote Kobrock. “We are discussing alternative funding models, which may include a municipal option in addition to the county-model.”

The Boothbay selectmen believe joining MCEDD will improve their prospects for securing federal funding for the Route 27 utility expansion project.

As a member, Boothbay could qualify for Economic Development Agency funds. Lincoln County is a MCEDD member, but Boothbay officials believe the current financial arrangement between the county and agency jeopardizes their chances to receive EDA funding.

The town hopes to receive a $70,000 matching grant for the Route 27 project.

According to Boothbay Town Manager and MCEDD treasurer James Chaousis, the county’s financial arrangement with MCEDD may exclude them from receiving matching funds.

He told the selectmen on Feb. 11, the county doesn’t provide any monetary support for the district. Instead, the county pays a contractual fee for specific services. 

In 2009, EDA conducted a performance audit on MCEDD, and ruled members must adhere to the funding model or not receive benefits. The county’s decision not to pay the annual $27,076 membership fee jeopardizes Boothbay receiving matching federal funds, according to Chaousis.

“They have negotiated for several services that they will pay for this year, but the EDA doesn’t recognize that as monetary support,” he said.

Chaousis advised the selectmen to wait and see if the EDA still has a “pay-to-play” provision before pursuing membership in MCEDD or the Midcoast Council of Governments, which would also qualify them for EDA funds.

“We should wait, and if at anytime we’re in danger of losing funding, then we should pursue membership then,” Chaousis said.

In other business, the selectmen approved a two-year fuel contract. The town entered into an agreement with Maine Power Options which assists municipalities, school districts and nonprofits in securing competitive fuel prices. Boothbay locked into a two-year price for diesel at $2.42 per gallon and gas at and $2.34 per gallon.

The town oversees the fuel depot, which disperses over 90,000 gallons of fuel per year, according to Chaousis. The depot is used by the municipal governments of Boothbay, Southport and Edgecomb, community school district, and Boothbay region water and refuse and disposal districts, Boothbay Harbor sewer district, and The Woodchucks.

The proposed bid is above current market prices, but Chaousis estimates the deal will save the town about $9,000 over two years.

“I’ll take a two-year locked-in price for diesel any day of the week,” he said. “Fuel prices have been a little erratic over past two years, but we finally became successful in locking into a price.”

The selectmen also are close to finalizing the May town meeting warrant. The selectmen expect to approve the warrant at their next meeting.

But two articles previously planned for the May 4 town meeting may not appear on the warrant.

Chaousis reported that the comprehensive plan update won’t be ready for a vote by May. He is also recommended delaying a vote on the Clifford Park redevelopment project. He recommended holding a special town meeting, possibly in July, to consider the comprehensive plan, Clifford Park redevelopment and recently proposed federal flood-plain ordinance. 

The selectmen also believed the referendum town meeting format in May would not be appropriate for adopting the updated comprehensive plan and Clifford Park proposals. The board agreed a special town meeting with an open format is a better forum regarding these warrant articles.

“I’d prefer take our time and do it right the first time,” said Selectman Steven Lewis. “I don’t want to rush something and get it wrong.”

The selectmen have also proposed a new retirement fund policy. The town currently contributes 10 percent of municipal employees’ pay into a retirement fund. The selectmen have proposed requiring an employee contribution to receive the maximum employer offering.

The new policy wouldn’t begin until 2016. And it would take five years to become fully implemented.

The proposal would require an employee contribution to receive the maximum offering.The proposal is slated to begin in 2016. The selectmen want employees contributing five percent of their pay by 2020. The employee would initially be required to contribute one percent of their pay into the fund. Each following year, the employee must add an additional one percentage point contribution.

For employees who don’t contribute, the town will pay five percent of their wages into the fund. The employees have 30 days to comment.

The selectmen expect to vote on the proposal on Wednesday, March 25.

The selectmen will meet next at 7 p.m. on Wednesday, March 11 in the municipal building.