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HomeMy WebLinkAbout2012-02-06 Finance Committee Minutes FINANCE COMMITTEE February 6, 2012 Minutes Councilors: Durgin, Hawes, Gallant, Gratwick, Blanchette, Baldacci, Sprague, Weston Staff: Cyr, Conlow, Cheverie, Little, Kochis, Webb Others: R. Lebreux, J. Conners Meeting Convened: 5:00pm 1. Bids/Purchasing a. Request to Waive Bid Process – Power Cot – Fire Department – Stryker EMS Equipment - $15,023 Ms. Cyr presented a request to waive the bid process for a new Stryker Power Cot. She stated that we have found that these cots work the best, are easiest to maintain and are the least expensive. In the past we have waved the bid process and have purchase directly through manufacturer, Stryker. The City has 5 units in service and they last about 5 years. This is the first of replacements and plan to budget one replacement per year. nd Councilor Gratwick inquired as to why they last only 5 years, and if they have a 2 hand value. Asst Chief, EMS Chief Rick Cheverie explained that the Stryker cots will replace another make/model cot with battery & charging system problems. The cots are used approximately 3,500 times per year. The Stryker Cots are expected to hold up better than the current cots, and as they get older, they will be kept as back-ups. He said that when we look at the liability of back injuries and the possibility of having a patient drop, these Stryker Cots are worth the investment. Councilor Baldacci stated that this is part of a revenue producing entity and we are billing for this service. It is important to have the quality service and safety. He would support this and move the recommendation. Movement seconded. Councilor Blanchette added that the new ones are much easier on the patient and are safer for our firefighters. Councilor Gallant suggested we find out if Stryker has a buy-back option available. Councilor Durgin called a vote unless doubted. Doubted by Councilor Gratwick. Motion carried. b. Sole Source – Electrical Service - Bangor Arena – Bangor Hydro - $340,626 Councilor Durgin introduced Jim Ring, Project Manager for the Arena Project. Mr. Ring requested consideration to engage in an agreement with Bangor Hydro to provide power for the new facility. This will require upgrading their system in the vicinity of the project. A letter was presented at the meeting with a checklist of different aspects of what they will be doing as part of this project. This is a budgeted item and will require a recommendation by Finance Committee and acceptance and approval of City Council. Mr. Ring stated that we have looked at options from $400,000 up to $1 million. Councilor Gratwick asked if the 5” conduit size is enough to last down the line. Mr. Ring responded that 5” is the standard and we have also been provided spares for future needs. Councilor Gallant commented that the underground part of electrical work seems high. Mr. Ring responded that the highest cost is the cable itself and number of runs. This price also includes transformers, etc. We have a number of quotes, have looked at all of this carefully and he is satisfied that we did end up with a good price. Unanimous Committee vote. 2. Presentation of FY 2011 Audit Reports Ms. Cyr introduced the FY2011 outside auditors, Roger Lebreux and Jennifer Conners from RUNYON KERSTEEN OUELLETTE. She explained the audit process to the committee and stated that the Finance Committee serves as the Audit Committee for the City of Bangor and that it is the Audit Committee that employs the auditors, not City Staff or Management. Roger Lebreux and Jennifer Conners of RUNYON KERSTEEN OUELLETTE presented a City of Bangor Financial Overview from the June 30, 2011 Audit. (PowerPoint Presentation attached to master minutes). All of the details of this presentation are in the Comprehensive Financial Report. The findings of the audit are based on very specific federal compliance rules. Council Chair Weston asked if this report affects us in any other way than just a note. Ms. Conners explained that this is just a “ding mark”. The Federal agencies tell you to provide a corrective action report and the following year we have to provide a status updates. They are looking for wide-spread systematic issues. Bangor had 87 separate grants from the Feds. Each one requires us to comply with grant specific requirements. 9 grants were reviewed out of 87. Some grants pass from Federal to the State. Regulations require a community agency to obtain a budget revision in the event that total expenditures in any category; personnel, equipment, sub-contractor, or other, exceed the budget amount for that category by at least 10% or $1,000, whichever is greater. We exceeded a line item by 33%. We over-expended one category, but under-expended the entire grant – this is a finding. We send quarterly reports and close-out reports. Anything over $100,000 has to be audited at the stated level. Federal level is a sliding scale. Councilor Gallant asked Mr. Lebreux, in his personal opinion where he thinks the City of Bangor is at. Mr. Lebreux responded that he has been participating in the City of Bangor audits for 15 years and that Ms. Cyr takes the auditors recommendations very seriously. The procedures here are amongst some of the best. They audit approximately 75 municipalities, and he would rate Bangor in the top 5 in regards to policies, management, staff or finances. Councilor Durgin thanked the auditors for their informative presentation. Meeting Adjourned: 6:20pm