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HomeMy WebLinkAbout2012-05-21 Finance Committee Minutes FINANCE COMMITTEE May 21, 2012 at 5:00pm Minutes Councilors: Blanchette, Weston, Gallant, Sprague, Gratwick, Hawes Staff: Cyr, Caruso, Morgan, Moore Others: Tim Safian, Joe Cuetara Filling in as Chair, Councilor Gallant noted that two of the normal voting members were absent this evening; Councilor Durgin (Chair) and Councilor Baldacci. Therefore, Councilors Hawes and Sprague will serve as voting members. 1. Consent Agenda a. Order, Authorizing Application for 319 Nonpoint Source Pollution Control Funding Finance Director Cyr explained that in total, they are applying for approximately $90,000 in grant money. A motion was made to move to consent agenda, it was seconded and approved. 2. Bids/Purchasing a. Operations Building Roof Replacement – WWTP – Roof Systems of Maine - $106,740 A motion was made to move to Staff Recommendation, it was seconded and approved. b. Godfrey/Maine Avenue Roundabout – Engineering – Hughes Brothers - $714,144 Cyr explained this proposed roundabout is located at the intersection of Godfrey and Maine Avenue. There is currently a signal which is old and in need of a costly replacement in order to comply with new requirements. Through MDOT, it was noted that a roundabout could be installed similar to the one on Maine and Texas Ave. Ten bids were received and Hughes Brothers is low bidder. This project is funded under that BACTS Program (Bangor Area Comprehensive Transportation System) The state’s share is 90% of this cost and the local share is 10%. A rigorous process has been undertaken to get to this point of going out to bid. A motion was made to move to Staff recommendation to award contract to Hughes Brothers. Motion seconded, Motion doubted by Gratwick, Gallant took vote of those in favor and opposed: 4 yes, 1 no, motion carried and approved. c. Trust Service Proposals – Airport – Bangor Savings Bank Cyr described that the City’s Airport maintains 2 trust accounts; one fixed portfolio, and one equity fund portfolio. The City’s contract under Trust Services has been with Bangor Savings Bank for the past six years. That contract ended therefore proposals were requested for Trust Services. Five responses were received and reviewed. Bangor Savings fees were clearly less than the others. It is staff recommendation that the contract for trust services be awarded to Bangor Savings Bank. A motion was made, seconded and approved. At this time, a motion was made to move ahead to Item 6 of the agenda: Executive Session – Hardship Abatement Appeals (A) and (B)– 36 MRSA § 841(2) A motion was made to move into Executive Session MRSA §841(2), motion was seconded and Executive Session began. 3. Order 12-170, Authorizing the Issuance of General Obligation Bonds and Notes in Anticipation Thereof Cyr stated that due to the mild winter weather we have had, additional work was completed at the Arena Complex than originally anticipated. The City has been able to accelerate the cash flow payments during this construction period to the point where the City is considering issuing either short term or bond anticipation notes for cash flow purposes. With the next two items on this agenda, we will be discussing the idea of permanently financing the arena in the July – August – September time frame. Proposals are currently out with Maine banks. A motion was made to move staff recommendation to execute $30 million dollars in short term notes, bond anticipation borrowings, it was seconded and approved to move to full Council. 4. Discussion with the City’s Financial Advisor Cyr introduced Joe Cuetara who has been the City’s Financial Advisor for nearly twenty years. Joe prepared a presentation to the group explaining items such as bond ratings, risks, rewards, debt, etc… in terms of lending money. 5. Discussion on Proposed Arena Project Financing The City’s bond attorney, financial advisor and Finance Director discussed the proposed financing of the Arena project. 6. Executive Session – Hardship Abatement Appeals (A) and (B)– 36 MRSA § 841(2) 7. Open Session – Hardship Abatement Appeal Decisions (A) and (B) Moved and Approved Staff Recommendation Committee adjourned at 6:55 pm.