HomeMy WebLinkAbout2011-10-17 Finance Committee Minutes
Finance Committee
October 17, 2011
Minutes
Council Members: Hawes, Blanchette, Longo, Durgin, Bronson, Weston, Nealley
Staff: Cyr, Conlow
Other: Eric Baxter
1. Consent Agenda
– Resolve 11-303, Appropriating a $60,000 Non-point Source Pollution
Grant for Capehart Brook Restoration Phase 1
Councilor Rick Bronson stated that this Resolve has been moved and seconded.
Councilor Nealley noted that for further explanation this was passed through
funds from the Maine Department of Environment Protection. With no further
questions, Councilor Bronson considered this a vote.
2. Overview of Public Access Channel
Cyr stated that there have been folks in the community expressing an interest in
operating The Public Access Channel. Cyr went on to say that the last time the
City entered into negotiation with the cable provider part of the franchise
agreement established P.E.G. channels (P-Public, E-Education, G-government)
The City’s Government channel is currently working well. The E channel is strictly
for educational reasons, which leaves the Public Access Chanel. The City
remained in what was then called the Penobscot County’s Cable Consortium. All
of the twelve communities committed 1% of their franchise fees. The consortium
hired a third party provider to facilitate public access. In 2004, the City withdrew
from the consortium which ended programming on the Public Access Channel. At
that time, the consortium budget was about $131,000 per year. The City
contracted with J. Mac to manage and operate public access as well as provide
training to all of the member communities on their government and educational
information. The cost of that contract was approximately $90,000 per year. The
remaining budget funded reserves and administrative costs. Prior to withdrawing
from the contract, the City looked at Public Access Channel usage. In the last year
of the consortium, the City’s fees would have been $48,000 and it was
determined that there was not enough usage to justify the cost.
Cyr went on to describe the requirements of public access channels.
At the time that the City withdrew from the consortium, approximately 27 users
annually put forth programming; 20 were groups from Bangor. In total, 72 users
were publishing bulletin board information. 53 of those were from Bangor. Most
of those groups were local, non-profit organizations. With the advances in
technology, there are a number of alternatives for community announcement.
During the past two months, 2 individuals have approached the City about their
interest in involvement with Public Access. They propose to offset some costs
through commercial programming. One concern is that Bangor does not dedicate
any part of their franchise fees to fund the public access channel. These
individuals feel that by the City not using its public access channel it’s suitable to
be taken away during the next franchise agreement.
Cyr continued to explain that individuals or groups have the ability to contract for
leased access for commercial programming purposes. Under a lease access
arrangement, producers would be required to enter into an agreement with a
cable operator and pay the associated fees for leasing the channel. It is staff’s
recommendation, at this point, that the City not entertain proposals to operate
public access channels.
Longo doesn’t feel it’s a good use of taxpayer’s dollars. He is encouraged by
citizen involvement and, if fundraising could cover costs, it may be useful.
Another avenue to entertain is the New England School of Communication.
Durgin stated that the current Government channel along with the school channel
provides the opportunity to express information to the public regarding their
community and it seems sufficient. Durgin proposed that we do not move
forward on this at this time.
Weston clarified with Cyr that this involves only channel 2 which has been dark
for several years. Weston said that though he believes there may be
opportunities with partnering with schools in the local area, he chooses to wait
for additional information including costs before he makes a decision.
Nealley would like to hold off any decision until more facts are gathered as far as
cost and negotiations are concerned. Nealley also commented that a local
channel focusing on Bangor and all it has to offer could be a positive asset to
visitors. Nealley feels that it is worth looking into as it could be an extension to
community and economic development.
Blanchette commented that the City of Bangor is well served with it’s current
education and government channels, as well as the new web site. Blanchette is
concerned about a public channel open for anybody to air inappropriate material.
In her opinion a public channel would not be an asset to the City of Bangor.
Blanchette made it clear that Council should stop the process on the public access
channel.
Bronson said that he is “content-nervous” as well as concerned about the budget
and funding of a public channel. If the public wants to be on television, then they
should bear the costs. If this moves forward, Bronson suggested that we place a
message to the effect that the City of Bangor is not responsible for content.
Cyr clarified that there are other ways to accomplish public access without
spending $48,000 or more. Conlow spoke of the positive aspects of utilizing a
public channel. It is a community access program. Conlow agrees that it is not a
high priority for funding now, but she expressed that there are upsides to public
access and wants everybody to look at the total picture and give it some
consideration. Cyr made a recommendation that the City not accept proposals,
nor solicit proposals to operate public access at this time. Nealley moved staff
recommendation, Durgin Seconded. Bronson declared it a vote.
3. Amendment to Fund Balance Policy
Cyr explained that in 2001, the City changed from its Defined Benefit Plan
(through Maine State Retirement) and went to a Defined Contribution Plan. The
City found that the Defined Benefit Plan was underfunded and it was responsible
for $33 million dollars, which the City paid. With the Contribution Plan,
employees are vested upon completion of one year of service. Employees who
separate prior to vesting forfeit the City’s contribution. Those forfeited
contributions are held by the plan sponsor and can only be used to pay current
employer contributions. The City currently has forfeited dollars with ICMA. Cyr
suggested that the City amend the Benefit Reserve portion of the Fund Balance
Policy to allow the Finance Director, in consultation with the City Manager, to
place the value of the forfeited 401A contributions that the City uses to pay
current year retirement contributions into the Benefit Reserve. At this point, we
are taking approximately $90,000 per year from that benefit reserve because
Maine State Retirement rates continue to escalate. This will provide an additional
means of funding the Benefit Reserve for future years and those funds cannot be
used for any other purpose.
Weston stated that this will give the City Manager and Finance Director the
authority to do what needs to be done with the reserve. Durgin further clarified
that Cyr’s recommendation would mean that the language is amended for the
Fund Balance Policy by the Council so that transactions can be implemented
without reference back to the Council. Cyr confirmed that statement is correct. It
will allow the City of Bangor to use the money that is at ICMA to pay current year
contributions resulting in a current year savings because the City has already
budgeted to pay the full amount of the contribution. Those savings can be placed
in a benefit reserve fund to offset future year increases through the budget
process.
Nealley moved to staff recommendation, Durgin seconded, Bronson called it a
vote.
Adjourned at: 5:56pm