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HomeMy WebLinkAbout2012-07-02 Finance Committee Minutes FINANCE COMMITTEE July 2, 2012 Immediately Following Infrastructure Committee at 5:00pm Minutes Councilors: Sprague, Gratwick, Durgin, Blanchette, Weston, Gallant, Longo, Hawes and Baldacci, Staff: Cyr, Conlow, Goodwin, and Morgan and Beaton Others: Largay, Civiello, Sleeper, Thomas 1. Consent Agenda a. Bids Awarded by Staff – June 2012 Councilor Durgin opened the meeting by noting that Councilor Gallant will be late this evening, therefore Councilor Sprague will fill in as a voting member. Durgin stated that three bids were awarded as follows:  Asbestos removal and disposal at building #253 at Bangor International Airport to State Wide Asbestos for $22,000.  Dock 12 Office renovations at B.I.A. to A.A. Randall for $58,320.  Door mules and sliding door renovations at B.I.A. for $35,380 Motion made to move Consent Agenda by Councilor Baldacci, seconded by Councilor Blanchette and approved. 2. Bids/Purchasing a. Request for Proposals – 55 Grant Street – Largay-Feeney Investments Finance Director Cyr explained that this property was acquired by the City due to unpaid taxes. To rehabilitate the property within a one year time frame, the recommendation is to enter into an agreement with Largay-Feeney. Councilor Gratwick questioned the quality of the work of Largay-Feeney. Cyr indicated that they submitted an extensive proposal and that Trish Largay was in the audience and could speak to the item. Ms. Largay identified properties that her company has recently restored; 47 Fountain Street and 353 North Main Street for review. Durgin rendered this a vote. b. Request to Waive Bid Process – Pavement Slurry Machine – Airport – PMSI - $16,995 Cyr stated that the recommendation is to award this contract to purchase a super-sealer from PMSI for $16,995. Baldacci moved Staff Recommendation, it was seconded and approved. Weston asked if the cost of the equipment made sense based on the actual cost of the work. Robbie Beaton, Superintendent of Operations at B.I.A. offered to look at the payback. Cyr also agreed to check with Public Works for additional information on the bid. Durgin clarified that this motion is a vote for the recommendation to award this contract to PMSI. c. Update on Emergency Sewer Repairs Art Morgan, City Engineer explained that he was contacted by a Larkin Street resident in Bangor who said that sinkholes were developing in the paved roadway. Morgan sent a sewer crew to investigate and they discovered that sewers were collapsing as a result of heavy rains. Morgan said that we are currently under contract with Lou Silver, Inc. on the sewer installation at Bakersville. Silver agreed to repair the sinkholes on Larkin Street for the same unit costs. The total of the repairs were $15,310 added as a change order to the original contract. Cyr explained that no action is needed from the Finance Committee. This is an affirmation for Council due to exceeding the purchasing regulation of $10,000 for emergency purposes. She further noted that it is common practice to go to the most recent contractor for current pricing in these situations. 3. Proposed Charter Amendment – Borrowing City Manager, Cathy Conlow stated that in March of 2011, Bangor City Council heard a proposal from Pauline Civiello and Linda Thomas to amend the Charter to require voter ratification of city borrowing. At that time, Council directed Staff, Finance Director Debbie Cyr along with City Solicitor Norm Heitmann to come up with the best proposal possible in dealing with the issues of borrowing. The group came back to Council and Finance Committee in May, 2011 with proposals. This year, Civiello returned to Council for discussion on the amendment status. Conlow said that an obvious advantage of this amendment is that it would place responsibility of large borrowing on the voters. The downside is that it reduces our flexibility. For example, Q-Scab bond opportunities at nearly 0% through federal borrowing for schools. Another disadvantage is the cost of holding special elections which could range from $4500 to $8500. Conlow discussed concerns moving forward including Q-Scab bonds and issues that could reduce operating expenses long term. Certain capital expenditures relative to roof repair, etc. can cost an excess of $1.2 million dollars. We may have unknown funding opportunities/options ahead of us through state or federal government. Conlow then explained the options given to the Committee:  Accept questions presented by petitioners and initiate a Charter Amendment with their language.  Create a Charter Amendment initiating your own language  Not to move forward at this time In summary, after a lengthy discussion the following concerns were noted:  If the decision is to move forward, it is recommended that a few exceptions would exist in the Charter for items such as the Q-Scab bonds, and allowing some flexibility.  $1.2 million is too low relative to the issues with large capital funding projects. The dollar amount must be higher to avoid frivolous elections.  Costs of running special elections  A study should be done looking at such things as; how has this affected other municipalities, past voter participation, what have we spent/ borrowed over a period of time, and theory vs. practicality.  Are there other options for voters to have a say rather than setting a dollar amount?  City Clerk Goodwin was asked to supply numbers on the percentage of voters who have gone to the polls for Special Elections in the past 20 years.  Consider a threshold limit by the percent of voters going to the polls - in order to be considered a Special Election as well as a good representation of Bangor residents  City Solicitor, Norm Heitmann said that one consideration is the timing limitations for Charter Amendments. There is a 60 day notice prior to the ballot and 2200 signatures need to be accumulated. Conlow recapped by stating that there is additional information needed, discussions need to continue and this should be brought back to the th next finance meeting on July 9. 4. Council Order 12-222, Authorizing Issuance of the City’s General Obligation Bonds and Notes in Anticipation Thereof and a Tax Levy Therefore Finance Director Cyr said that this would authorize the remaining funds ($35 million) of $65 million to build the Arena and Convention Center which is currently under construction. Cyr stated that they are shooting for a sale date of st July 31 to sell the City’s General Obligation Bonds on a permanent basis to fund the facility. Baldacci made a motion to move to full Council, it was seconded and approved. 5. Executive Session – 36 MRSA Section 841(2) – Hardship Abatement 6. Open Session – Hardship Abatement Decision Committee adjourned at 6:25pm.