HomeMy WebLinkAbout2011-01-03 Finance Committee Minutes
FINANCE COMMITTEE
January 3, 2011
Councilors: Bronson, Weston, Durgin, Hawes, Gratwick, Blanchette, Longo, Nealley
Staff: Cyr, Conlow, Cammack, Little, Ring, Gastia, Hupp
1. Consent Agenda
A motion was made and seconded to approve the Consent Agenda. The vote was
unanimous.
a. Emergency Purchase – Dow Trunk Sewer Line Repair
b. Quitclaim Deed – 2602 & 2604 Broadway
c. Quitclaim Deed – 125 Ohio Street
d. Quitclaim Deed – 454 Ohio Street
e. Quitclaim Deed – 155 Palm Street
f. Quitclaim Deed – 56 Pushaw Road
g. Quitclaim Deed – 12 Wing Street
h. Workout Agreement – 568 Hammond Street
i. Workout Agreement – 91 Holiday Park
j. Workout Agreement – 99 & 101 Pine Street
2. Bids/Purchasing
a. Automated Fingerprint Identification System – Police Department – Spex
Forensics - $20,000
Cyr said this came before the Finance Committee last fall and the item was put out for
bid. It was an item included in the American Recovery and Reinvestment Act funding
through the Department of Justice. The estimated cost was $15,000. Four responses
were received and two were disqualified because of not meeting the bid specifications;
i.e. they could not be remotely accessed. The Police Department recommends award of
the bid to Spex Forensics in the amount of $20,000. The Department has funding from
another Homeland Security Grant to be redirected for the purpose of covering the
$5,000 difference. Responding to Durgin, Gastia said that this system was priced at a
much higher price than what was obtained. It provides the vendor a way for this
particular system to make inroads into northeast, particularly Maine. The two
companies do offer the same product. One is a distributor and the other represents the
manufacturer. The distributor has a set price which the manufacturer sets for them.
The manufacturer was willing to work with the City but the distributor was not allowed
to come down on the price. Gastia said that the manufacturer will ask the distributor to
sell the City the product at the manufacturer’s price. In response to Gratwick, Gastia
said that this is up-to-date technology. Gastia said that the State of Maine uses a
different system and is in agreement with the states of New Hampshire and Vermont.
It would be extremely expensive for the City to get into the State Police’s system, and
there is no guarantee that Bangor would be accepted get into the State’s system.
Gastia noted that the State Police’s backlog is extensive. The Portland Police
Department is using the same system as Bangor PD is requesting. Portland has started
to build a statewide data base that will be more accessible to the smaller departments.
Gratwick said it is unfortunate that all departments cannot use the same system.
Durgin asked if the Police Department would be able to get compatible data from the
state. Gastia said yes although it may take months to get the answer. Durgin asked
about making the Legislative Delegation aware of the incompatibility. Bangor’s
Department has been exploring this since 2005. Blanchette said the Legislature needs
to let municipalities break free from the State Police and do their own database on
fingerprints. A motion was made and seconded supporting staff recommendation. The
vote was unanimous.
b. Radios – Airport – Continental Wireless - $12,433.55
The Finance Committee previously approved the issuance of bids. In 2013, the City will
need to change its radio channels due to the narrowing of the band width. Over the
last few years, any radios purchased by the City are capable of being changed over to
meet the new requirements; however, the Airport had 16 portable units and 35 base
units that were too old to convert. The recommendation is to award the bid to
Continental Wireless for $12,463.47 (Cyr noted a typo in the amount printed on the
prepared agenda). Continental Wireless was the second low bid but they were the first
responsive bidder. The City had requested Motorola PR400s, Motorola CP200s and
Icoms S5021s. The funds have been budgeted in the Airport’s operating budget.
Responding to Weston, Hupp said this purchase would complete the conversion in line
with the band change. A motion was made and seconded to approve staff
recommendation. The vote was unanimous. Bronson discussed the $2,000 dollar
amount difference between the local vendor and the Texas vendor. Hupp said the
Airport does not have experience with the Texas vendor. The existing policy is to go
with the low responsive bid. References were checked. Cyr said that while there are
provisions if the bids are equal then a local bidder is recommended. She noted that
$2,000 on top of the $12,000 is about 15-20% price increase. She also pointed out
that the service and maintenance of these items will be handled by the local rep as the
service contract is with that individual. There is a multi-year service contract with
Whitten’s. The low bidder did not bid the Motorola units. Longo spoke of local
bidders. If a local bidder came within 12% of the low bidder, could the bid be given
the local vendor to keep the money in the community. Bronson agreed. Cyr said there
have been a number of conversations about local preference. In reviewing this several
years ago, it was noted that a majority of the City’s bids go to local companies. There
is no clear way to define a threshold. With a built-incentive for local businesses, a
wide variety businesses will potentially not be attracted and thereby reduce competition
and potentially increase the overall operating costs. Nealley said he still struggles about
local vendor preference. Blanchette said that Councils in the past and will continue in
the future to question why there is not a local preference for bids. The backfiring
component is that once you start playing favorites you do not get the bids that would
normally be received. Blanchette thinks that the City has a fair bidding policy in place.
The City has a good reputation.
c. Ambulance – Fire Department – Custom Truck and Body Works - $118,541
Cyr said that as part of the FY11 budget process the Council reviewed a list of capital
equipment requests and appropriated $115,000 from the Fire Equipment Reserve
Account to replace an ambulance. The recommendation is to award to the low bidder,
Custom Truck and Body Works, in the amount of $118,541. The item will go forward to
full Council. The amount is slightly higher than what was set aside but in that same
capital project there were other pieces of equipment and/or projects that have come in
under bid. Cammack noted that the Department has previously done business with
Custom Truck. A motion was made and seconded to move staff recommendation. In
response to Gratwick, Cammack said there are 5 ambulances and this purchase will
replace a 2006 ambulance with over 100,000 miles. When a new ambulance is taken
in, it is placed at Central Fire. The unit from Central Fire will be moved to Station 5 or
6, then it goes to a long distance transfer unit, then to the spare unit and finally taken
out of the fleet. Cammack noted that the 100,000 miles on the ambulance does not
take idling time into consideration. Gratwick asked if the retired units are sold;
Cammack said he would come to the Committee at the time plans are in place for the
retired unit. Weston asked about the price differential in the quotes. Cyr said there is
no difference because the specifications for an ambulance are 50 pages in length and
identify every single piece of equipment, etc. Cammack said that two other bids were
received after the fact. Cammack said that the higher priced vehicles are not always
better. Weston said if the specs are the same perhaps the market for ambulances is
not as dire. In response to Durgin, Cammack said the normal useful life of an
ambulance is around 5 years. Cammack said at budget time he meets with the Finance
Director and City Manager to look at the fleet. He noted that changing from the Ford
chassis to the Chevy chassis hoping it will make a difference in the life expectancy.
Responding to Longo, Cammack said there seems to be less issue with the Chevy
chassis. This item received unanimous approval.
d. Turnout Gear – Fire Department – Bergeron Protective Clothing - $15,953.64
Cammack said that this clothing needs to be topnotch. When going out for bid, some
vendors were invited in and 10 different prices were received for turnout gear. The
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recommendation is for Bergeron, which is 3 on the list of bidders. After speaking with
the folks from Bergeron about the Globe Classics, which didn’t suit the needs of the
Department and did not meet specs, staff is recommending Bergeron for a three-year
contract of a low bid of $46,037.36. Cammack noted the positive experience with
Bergeron. Responding to Durgin, Cammack said that the Department has worked with
this specific brand. He also checked with other Departments around the state. A
motion was made and seconded to move staff recommendation. It was unanimous.
3. Request to Take Possession of 34 Holland Street
The Finance Director requested that this item be removed from the agenda due to
some miscommunication. It may come back at another time.
4. Proposed Legislation
Little noted that he is Vice President of the Maine Municipal Tax Collectors/Treasurers
Association. He also is Chair of the Legislative Committee and, as such, he was
instrumental in drafting two pieces of proposed Legislation which the Association will be
putting forth this coming session. Both pieces will affect City staff and City revenues.
The first proposal is a housekeeping matter. In current legislation with what he called a
facsimile bill, sewer liens, tax and sewer discharges and tax and sewer lien, waivers of
foreclosure require a real signature. Without a real signature, the Registry of Deeds will
not accept those filings. As such, the Finance Director and Little spend hours a year
signing thousands of documents with a real signature. This proposal will clean up those
pieces of current law and allow facsimile signatures like it does on regular tax liens and
other documents. The Maine Municipal Association Legislative Policy Committee will
also be supporting this change. The second proposal relates to the agent fee that the
City currently collects for motor vehicle and inland fishery transactions. This fee is
collected when a transaction is completed for the State. Currently, there is a $3.00 fee
for motor vehicle renewal, $4.00 if it is a new registration, $1.00 for a boat, snowmobile
or ATV, $2.00 for a renewal and $4.00 for a new transaction. The Association is
proposing that those fees be increased to $5 and $6 for motor vehicles and $3 and $4
for recreational vehicles. The fee for motor vehicles has not been increased since 1991.
The intent of the original fee is to reimburse some of the costs that the municipality
incurs when acting as an agent for the state in completing a transaction. It’s not just a
matter of convenience for the customer; there is a lot of extra time involved in the
transaction as well as paperwork in preparing the report and sending money to the
state. Current fees are not adequate to cover those costs. Little estimates that the City
finishes 75% or almost 19,000 registrations out of the 25,000 processed on an annual
basis. It would be a way to increase municipal revenues without impacting property
taxes. It is an optional fee as the customer could chose to go to the Department of
Motor Vehicle. He estimates an additional $30,000-$40,000 in revenue with the
proposed increased. Responding to Bronson, Conlow said that a list of all legislation
coming out of various departments and agencies will be prepared for the Council’s
consideration. The Council will have an opportunity to express support or opposition.
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The list will be taken to the January 31 Council/Legislation Delegation meeting.
Bronson spoke about the Maine Municipal Association and Bangor’s membership dues.
Conlow said that MMA has a Legislative Policy Committee. Little noted that Paul Nicklas
is a voting member of the MMA LPC; Little is on the Committee as a non-voting member
because he is on the Tax Collectors Board. Conlow noted that many communities
including Bangor have formed their own lobbying group – the Maine Service Center
Coalition. Farrar sits on that Coalition and will bring the Coalition’s list to the City.
Bronson clarified that a Councilor is appointed to the MMA LPC. The two-year term is
shared with the Town of Hermon. Bronson was appointed but expressed his desire to
not serve in that capacity to Council Chair Hawes. Bronson said it is important that
Nicklas summarize all that is proposed at MMA. Blanchette asked Bronson if the
Committee is going to support the proposed increases. She said it is one of the best
services offered in the City of Bangor and supports the increased fees. Little clarified
that the proposed languages indicates an “up to” amount. Bronson supported the
increase. The support was unanimous.
Adjournment at 5:57 pm.